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How to get a Mortgage when on Furlough?

How to get a Mortgage when on Furlough?

If you apply for a mortgage while on furlough, lenders will inly take into account the income that you’ve been furloughed on.

Nearly a quarter of all employees in Sheffield have been furloughed since the Coronavirus retention scheme on April 20th 2020

Nearly a quarter of all employees in Sheffield have been furloughed since the Coronavirus retention scheme on April 20th 2020 created by the UK Government. Under the scheme, Chancellor Rishi Sunak said the treasury would pay 80% of furloughed workers’ wages, up to £2,500 a month, so that employers can reduce redundancies and keep staff on the payroll.

If Furloughed, can I still get a Mortgage?

If you apply for a mortgage while on furlough, lenders will only take into account the income that you’ve been furloughed on. So, for example, this will be a maximum of £2,500 per month paid by the government. 

They will include the amount the employer is topping up if that is confirmed by the company. However, some lenders are asking the employer to confirm whether they plan to rehire some employees but that, of course, is difficult to answer.

Can I still get a Mortgage if I haven’t been furloughed?

The products that were cancelled tended to be high loan-to-value mortgages such as Help to Buy loans. However, it is now possible to get an approval based on an automated valuation for mortgages under 60% loan-to-value on a property priced below £500,000.

The Return of Help to Buy

The Help to Buy scheme which is available on new homes valued at £600,000 in Sheffield. The buyer needs a 5% deposit while the government puts up a 40% loan and the bank lends the remaining 55%.  

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