Can I get a mortgage on Furlough?

Being on furlough or leave means you do not have to be singled out for applying for the mortgage application. You can get a mortgage but with certain limitations. The majority of the big lenders from financial institutions and mortgage banks are accepting mortgage applications during the furlough period.

If you are on a furlough, you need to understand the criteria of the mortgage on a furlough. Most of you may ask Can I get a mortgage on furlough? Before answering your query, look at the few instances below:

• what are the chances of getting a mortgage if an applicant is on a furlough
• where should an applicant approach for filing an application
• what are the limitations of a mortgage on furlough
• will the restrictions are waived off once an applicant is back at work
• or does furlough affect mortgage application

To answer all these and more, you need an expert on furlough mortgages to advise you on the end-to-end process, answers to all your questions, and documentation to initiate the process of filing a mortgage.

“As per the reports, the government pays most of the wages for people not at work or people not receiving salaries from their employers. The ‘furlough scheme’ was introduced on 20 March and will continue till the end of September 2021.

Furlough scheme came into existence on the pandemic, and it is also known as the Coronavirus Job Retention Scheme.”

What does this ‘furlough scheme’ means? Will it change? When does it end?

As this furlough scheme has already been discussed, one can apply for a mortgage even if it is under furlough. But options of deals are restricted to people because of their employment situation. However, a bigger question is what does ‘furlough scheme’ means?

People under their furlough will have the financial support of up to 80% of the wages, and the salaries are capped at £2,500 a month.

While this move from the Government is widely welcome by employers.

Although the furlough scheme is remained unchanged, employers have been asked to contribute during the final months of the scheme.

The furlough scheme lasts up to 30th September as it was previously extended to four times.

Does furlough affect my mortgage application?

Can furlough impact my mortgage application? Although it is indicated that the mortgage application of the people under furlough will not be affected, there is some level of uncertainty about mortgage lenders from financial institutions, and banking won’t accept their applications.

With many workers in the UK are still relying on the Government’s furlough scheme, it is understandable that future career and financial stability come into the picture. Your return to work after furlough can minimize the risk, but your application will be assessed cautiously to check the eligibility criteria. Even if the application is approved, there might be fewer mortgage options.

Factors that affects furlough affect mortgage application include:

• Age
• Amount of money applying to borrow
• Income-to-debt ratio
• Predictable income
• Income through Self-Employment
• Type of property you are buying
• Credit score

Furlough and Mortgages

While applicants can still get a mortgage, both furlough and mortgages schemes have been compatible during this period. If you want to know about a good mortgage rate, even if you have been furloughed, you can seek advice from an experienced financial planner firm – Future Planning.

Getting the right advice on mortgage and furlough will help you understand the process of application.

Future Planning will help you understand about the

• timeframe of the furlough scheme
• how much do furloughed employees receive mortgage
• what would the employers gain under the furlough scheme and many other questions will be answered by our expert team.

Future Planning is an independent financial advisory company that has successfully provided answers to questions such as Can I get a mortgage on Furlough? OR Does furlough affect mortgage application? OR related to all Furlough Mortgages queries, we are here to render the best consultation.

We also help to find suitable lenders and banking institutions to help employees on furlough and mortgages.