Mortgage Application - Furlough

[lee12345]

Hi,

I was wondering if anyone has been in a similar situation. I have applied for a mortgage last week through our broker & have found out I will now be furloughed for at least November. Does anyone know if this will affect my mortgage approval, as I have already applied & supplied payslips etc?

Many thanks

It’s lender dependent; some are honouring previous offers made to borrowers who have been furloughed, others aren’t; and they may well ask for additional payslips or proof that your income or employment hasn’t changed prior to releasing funds ahead of completion, so it’s something you definitely need to check with your lender rather than hoping for the best.

Apart from that, do you really want to be committing yourself to a mortgage with your employment being uncertain? What happens if you are furloughed for longer? Or worse, made redundant - which unfortunately is something likely to happen to many people currently on furlough.

My best friend is in the same position and her bank has deferred her morgage until she is back at work full time. She has been off though basically since March. They wouldn’t accept payslips with furlough on. I would speak to your broker though. It may not matter as you have already supplied payslips.

How will they know?

I’m not sure if it’s the same for all lenders but we’re going with Santander and were required to confirm neither of us had been affected by Covid. We were specifically asked whether either of us had been furloughed or put on reduced hours. This was after we’d provided payslips and bank statements etc.

I'm in the process of starting my mortgage application and my broker has advised that there are a handful of lenders that will stoll lend to people who have been furloughed. Hes looking at Santander for is as he had someone approved with them recently who was just asked to provide a letter from their employer stating that their job is still there after lockdown.

Some lenders accept if your company tops up your salary + a letter mentioning from your employer confirming you will be back at work within 3 months

Mine was accepted after first furlough but needed letter from my employer confirming I was going back.

@EnglishGirlApproximately

I'm in the process of starting my mortgage application and my broker has advised that there are a handful of lenders that will stoll lend to people who have been furloughed. Hes looking at Santander for is as he had someone approved with them recently who was just asked to provide a letter from their employer stating that their job is still there after lockdown.

Do you know if they were a deadline to go back to work? Heard the letter must state you will be back to work full time (not part furloughed) within 3 months. My employer cannot guarantee I will be back within 3 months but for sure I still have my job (they recruited internally 2 more people)