• Corey Whelan

Lenders & The Furlough Scheme

With the furlough scheme now approaching its end in October 2020, Lenders are now adjusting their criteria on how they are dealing with those on the furlough scheme.

Original Approach

Different lenders approached the original scheme slightly differently but it was widely possible to find a lender that could take the 80% from the Furlough Scheme as income and in some cases if an employer was paying a top of the remaining 20% of the income then there were lenders that could also have taken this into account as well.

The New Changes

Now appearing to fall like dominoes the lenders all seem to be following a similar matching criteria in that the Furlough Scheme in itself is no longer an acceptable income. If there is no return to work date or letter from an employer. The income for that client will be £0. If there is a return to work date in place then the lenders would be willing to take the return to work salary as the income for the mortgage application. Meaning if your employer has informed you of when you will be returning to work then your income can be counted but if your employer can’t provide this for you then your income can’t be counted for the mortgage

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