When deciding whether or not to give you a mortgage, lenders are looking at, amongst other things, whether you have stable employment so that they can be as sure as possible that you will be able to afford the repayments. So, if you’re looking for a mortgage whilst on furlough, it may be a little bit more difficult. Despite being furloughed still classed as remaining in employment, some lenders may not offer you a mortgage if there is some uncertainty around whether your job will resume after the furlough period.
Additionally, some lenders, such as Natwest and Nationwide, are only considering applications based on your furlough income, rather than your full-time salary. So if you’re currently only getting paid 80% of your usual income, you may not be able to borrow as much which can affect what deals are available to you.
The best thing to do is speak to a mortgage broker who can search the market for you and approach lenders who are most likely to offer you a good mortgage deal.
What about getting a mortgage after furlough?
If you’ve been furloughed but have now returned to work there shouldn’t really be any issues with you getting a mortgage. As we’ve said, being on furlough is still technically classed as remaining in employment so it’s not likely to affect the deals available to you.
Some of the more cautious lenders may see someone who has just returned from furlough as a higher risk, especially if your industry is deemed high risk. So it’s worth keeping that in mind when looking at what deals are being offered to you.
Is there any help available to homeowners during this time?
The COVID-19 pandemic has left many people in uncertain circumstances financially. Many have been furloughed whilst others have had to stop working altogether. With that in mind, various lenders are offering their customers mortgage payment holidays to help ease the financial burden that coronavirus has caused. Around one in nine mortgage holders in the UK have opted to take a payment holiday. You need to get in touch with your mortgage provider to see if this is something that is available to you.
In the meantime, if you’re looking for help getting a mortgage and you’ve either just come off furlough or are currently being furloughed, we can help you. As mortgage brokers in Manchester we’ve been busy during the pandemic giving people tips and advice and helping them find the best mortgage deals available. Contact us today to speak to one of our friendly advisors.
