The whole of the UK has been impacted by the current pandemic and with millions of workers furloughed, many want to know if they can still obtain a mortgage after being furloughed.
The short answer is yes, but it’s really important that you seek some expert mortgage advice. In this short blog I explain more!
Each lender assesses furloughed applicants differently depending on your unique set of circumstances.
The good news is, if you have now returned to work from furlough then you have every chance of obtaining a mortgage. The lenders will still take in to consideration the industry you work in to ensure your role is not under immediate threat of redundancy and assess the long-term security of your role.
If you are now back to work from furlough the lenders will require a return-to-work letter from your employer confirming your return date and that you have returned on full pay and/or a latest payslip showing your full salary rather than furlough pay. The application will be subject to the usual underwriting which includes a credit check, affordability assessment and mortgage valuation.
If, however, you are still on furlough then there are very few lenders that will currently consider an application due to the uncertainty surrounding your return to work. The lenders have to demonstrate to the regulator that they are lending responsibly so if there is any doubt surrounding your return to work then the lenders may decline your application.
That said some select lenders may assess applications based on their individual merits and consider using furlough pay towards affordability if they are comfortable that you will return to work again shortly.
In summary, some lenders are stricter than others, some will point blank decline furloughed workers and others may consider an application on its individual merits. My recommendation would be to speak with a mortgage advisor to find out if you can apply during furlough or if it would be more beneficial to wait until you back at work.
Thank you for reading my latest blog, if you have any questions or would like some professional, friendly mortgage advice then feel free to get in touch