Question: Can you still get a mortgage, or Remortgaging for a better mortgage deal to reduce your monthly mortgage costs, if you have been temporarily furloughed by your employer and are now receiving 80% of your income via the Government Coronavirus Job Retention Scheme?
A question on a lot of people’s minds in regards to mortgages during this COVID-19 situation, is can I still get a mortgage if I have been furloughed (the Government Coronavirus Job Retention Scheme) by my employer and I am temporarily receiving 80% of my employed income via the Government scheme. (When you are furloughed your employer receives a grant from HMRC to cover the lower of 80% of an employee’s regular wage or £2,500 per month). For more information see link here)
The good news is that some UK lenders with very competitive mortgage deals are now adjusting their income criteria to accept and support applicants in this position, please see an extract one lenders criteria released today (02.04.2020).
Please note that mortgage affordability would be assessed by the lender on your temporarily furloughed income NOT the full normal income from your employer.
This is good news for those people who have been temporarily furloughed who want to try and reduce their monthly mortgage costs by switching deals to a new lender with a better mortgage deal, now that the Bank of England base rate is historically low.
If you would like a Broadland Consultants mortgage adviser’s help in trying to reduce your monthly mortgage costs by reviewing the mortgage market for Remortgaging lenders that accept furloughed applicants, please get in touch and we will quickly check the market for you, to see if we can help save you money on your monthly mortgage costs.
Example of Updated UK Mortgage Lender Criteria Below:
The customer’s employed income has changed permanently or temporarily AND/OR they are now on the Government scheme (Coronavirus Job Retention Scheme), how do we assess?
We will use the customer’s new revised income for affordability assessment and you will need to provide evidence of the customer’s new income.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
Commercial and Buy to Let Mortgages are not regulated by the Financial Conduct Authority.