During the coronavirus crisis, you may have been placed on furlough by your employer and are now wondering whether this will affect your chances of getting a mortgage in the future.\r\n\r\nThe good news is that mortgage approval on furlough is possible and there's help available. We work with expert brokers who have helped people get the mortgage they need under all kinds of niche circumstances, and they\u2019re well placed to offer expert advice to anyone who was placed on furlough leave whether it be for a sole or <a href="https:\/\/www.onlinemortgageadvisor.co.uk\/mortgage-application\/joint-mortgages-in-the-uk\/">joint mortgage<\/a> application.\r\n\r\nIn this guide, we\u2019ll explain exactly how furlough leave can affect your chances of getting a mortgage and outline the kind of support that\u2019s available to you.\r\n<ul>\r\n \t<li><a href="#can-i">Can I get a mortgage after a furlough?\u00a0<\/a><\/li>\r\n \t<li><a href="#will-furlough-impact">Will furlough impact on my mortgage application? <\/a><\/li>\r\n \t<li><a href="#how-to">How to get the best rates after furlough leave<\/a><\/li>\r\n \t<li><a href="#remortgage">Can I remortgage after a furlough?<\/a><\/li>\r\n \t<li><a href="#still-on-leave">Can I get a mortgage if I\u2019m still on furlough leave?<\/a><\/li>\r\n \t<li><a href="#what-support">What support is available if I can\u2019t pay my mortgage?<\/a><\/li>\r\n \t<li><a href="#speak-to-expert">Speak to an expert<\/a><\/li>\r\n<\/ul>\r\n[feefo-banner]\r\n<h2 id="can-i">Can I get a mortgage after a furlough?<\/h2>\r\nYes. You can still buy a house if you're furloughed, get a mortgage or apply for related financial products like remortgages and bridging loans.\r\n\r\nIf you\u2019ve returned to work after furlough leave there\u2019s no reason why mortgage approval should be off the table, assuming you meet the lender\u2019s general eligibility criteria. Being placed on furlough is technically classed as remaining in employment, so it\u2019s unlikely to affect the deals available to you, assuming your job is likely to stay secure.\r\n\r\nHowever, if you only recently returned from furlough leave, some lenders might view your application with caution. If there is any ongoing risk to the company you work for or your job is considered under threat, your choice of lender might be slimmer as there are mortgage providers who are approaching customers that work in \u2018high risk\u2019 sectors with caution.\r\n\r\nNot everyone who has been placed on furlough will be classed as high risk from a lending perspective when they return to work, but if your employment situation is uncertain, keep in mind that some mortgage lenders have a higher appetite for risk than others and maybe more than happy to offer post-furlough mortgages on standard terms, i.e. with exactly the same rates as somebody who wasn\u2019t placed on leave during the coronavirus outbreak.\r\n\r\nGiven that some providers are better placed than others to offer the best rates to customers after a furlough, your best bet is to <a href="https:\/\/www.onlinemortgageadvisor.co.uk\/mortgage-application\/" target="_blank" rel="noreferrer noopener" aria-label=" (opens in a new tab)">apply for your mortgage<\/a> through an expert broker who knows the market. They can match the level of risk your application carries to the mortgage provider with the right appetite for it to ensure you get the best deal that you qualify for.\r\n<h2 id="will-furlough-impact">Will furlough affect my mortgage application?<\/h2>\r\nIf you\u2019re still on furlough leave, you may find that your choice of approachable lenders is fewer, especially if there are question marks around whether your job will resume. And as previously mentioned, those who recently returned to work might find their employment situation under scrutiny as the lender will want to be sure that your job is secure.\r\n\r\nThe majority of lenders who will lend whilst you are on furlough leave will consider the full income you receive plus any top-ups from your employer. It\u2019s important to remember, however, that most lenders will only consider basic salary and not additional elements such as overtime or commission.\r\n<h3>Does being furloughed affect second home mortgage applications?<\/h3>\r\nOnly in exceptional circumstances. Issues could also arise if it\u2019s a <a href="https:\/\/www.onlinemortgageadvisor.co.uk\/2nd-home-mortgages\/" target="_blank" rel="noreferrer noopener" aria-label=" (opens in a new tab)">second home mortgage<\/a> or a remortgage that you\u2019re applying for and you missed payments on your existing mortgage or other credit payments while on furlough.\r\n\r\nIf you failed to inform your lender that the payments would be late, this could jeopardise future applications for finance. Make an enquiry to speak with a broker for more information.\r\n<h2 id="how-to">How to get the best rates after furlough leave<\/h2>\r\nIf you're buying a property on furlough and looking for the most favourable interest rates, your best bet is to avoid mortgage lenders who are likely to consider your application higher risk, and this is especially important if there\u2019s any uncertainty around your employment.\r\n\r\nIf you apply through a broker, they will search the entire market for you and match you with the lender who is ideally placed to offer you the best deal for your needs and circumstances.\r\n\r\nMoreover, saving up extra deposit will lower the overall risk the deal carries by bringing down the LTV, plus having more deposit to put down means access to a wider range of lenders and products with lower rates.\r\n\r\nYour employment situation, of course, isn\u2019t the only factor that will determine what kind of rates you end up with. If you have bad credit, a <a href="https:\/\/www.onlinemortgageadvisor.co.uk\/bad-credit-mortgages\/how-to-get-a-mortgage-with-bad-credit\/">bad credit mortgage lender<\/a> might be required to approve your application on standard terms, and depending on the age and severity of the issue, a higher deposit amount might be needed purely to qualify for a mortgage.\r\n<h2 id="remortgage">Can I remortgage after a furlough?<\/h2>\r\nYes. There\u2019s no reason why not, and as long as the lender is confident your job is secure, it may be possible to lock down a more favourable interest rate than before.\r\n\r\nIf you\u2019re applying for a remortgage on furlough, some lenders may consider offering you a deal based on your pre-furlough wages, although they might ask to see some evidence that you will be returning to work on full salary in the future, such as a letter from your employer. This is likely to be determined on a case-by-case basis.\r\n\r\nOther lenders may only consider offering you a remortgage based on your furlough income, typically 80% of your normal salary, unless your employer is topping it up.\r\n\r\nThe only reason you might struggle to remortgage after a furlough is if you missed mortgage payments while on leave from work without agreeing a payment holiday with your lender.\r\n\r\nYou can read more about refinancing mortgages in our in-depth <a href="https:\/\/www.onlinemortgageadvisor.co.uk\/remortgages\/remortgage-guide\/" target="_blank" rel="noreferrer noopener" aria-label=" (opens in a new tab)">guide to remortgaging<\/a>.\r\n<h2 id="still-on-leave">Can I get a mortgage if I\u2019m still on furlough leave?<\/h2>\r\nAs long as the lender is confident that you will be returning to work and your job will be secure in the aftermath, then it may be possible to get a mortgage while on furlough.\r\n\r\nMost mortgage lenders are asking furloughed borrowers for employment references and will be keen to see your first payslip when you're back at work to safeguard themselves against \u201cfurlough fraud\u201d.\r\n\r\nWhatever your circumstances, make an enquiry to speak to a broker who knows exactly which mortgage lenders to match furloughed customers with.\r\n<h3>Which mortgage lenders are accepting applications from furloughed customers?<\/h3>\r\nMortgage lenders considering applications from people currently on furlough include Santander, Metro Bank, Post Office Money and Scottish Building Society, in addition to a range of specialist mortgage providers and challenger banks.\r\n\r\nMost of these lenders will assess furloughed applicants on a case-by-case basis and will want to see a letter from their employer confirming that they'll be returning to work. Some might also request their first payslip post-return.\r\n\r\nSome mortgage providers still have restrictions on their lending criteria for furloughed customers, so the importance of seeking specialist advice before you apply has never been higher. You'll want to be matched with the lender who's best positioned to offer you the most favourable deal possible in the current climate, and you're unlikely to find that if you gamble by going direct to one bank or building society, thus only having access to their products.\r\n\r\nA minority of lenders aren't considering new applications from furloughed borrowers at all. Coventry Building Society, for instance, are only accepting applications for finance from existing customers and Bluestone is exercising caution with furloughed customers from the hospitality industry.\r\n<h2 id="what-support">What support is available if I can\u2019t pay my mortgage while on furlough?<\/h2>\r\nIn March 2020, the government announced <a href="https:\/\/www.onlinemortgageadvisor.co.uk\/blog\/coronavirus-and-mortgages\/" target="_blank" rel="noreferrer noopener" aria-label=" (opens in a new tab)">measures to help homeowners<\/a> who are struggling to pay their mortgage due to the impact of the coronavirus.\r\n\r\nMortgage lenders are being encouraged to be lenient to customers on furlough if they\u2019re experiencing financial difficulty and the Financial Conduct Authority (FCA) has instructed lenders not to repossess properties while the measures are in place.\r\n\r\nMoreover, the government announced optional <a href="https:\/\/www.onlinemortgageadvisor.co.uk\/blog\/mortgage-payment-holidays\/">mortgage payment holidays<\/a> for customers as part of its package of support. This is an agreement you can make with your lender that means no mortgage payments are due for a three-month period. They were recently extended for up to six additional months beyond October 2020, following confirmation of the national lockdown that will run between 5th November and 2nd December.\r\n\r\nMost experts only recommend taking a mortgage holiday as a last resort, though, since the interest will continue to accumulate during the break and you will end up owing more and be lumbered with higher monthly payments when the holiday comes to an end.\r\n\r\nMortgage holidays aren\u2019t the only support being offered to coronavirus-impacted homeowners. Some lenders are giving customers the option to <a href="https:\/\/www.onlinemortgageadvisor.co.uk\/interest-only-mortgages\/change-repayment-to-interest-only\/" target="_blank" rel="noreferrer noopener" aria-label=" (opens in a new tab)">switch to an interest-only agreement<\/a> and waiving fees for missed payments during the crisis.\r\n\r\nIf you\u2019re struggling to pay your mortgage while on furlough, you should speak to your lender to find out what options are available and only consider a holiday if there are no alternatives. For independent advice, make an enquiry and we\u2019ll match you with a broker.\r\n<h2 id="speak-to-expert">Speak to an expert<\/h2>\r\nTo find the mortgage lender who is best placed to offer you favourable rates during or after a furlough, your best bet is to speak to a whole-of-market broker. They will know exactly which lenders have the right risk appetite to handle your application and offer the best rates.\r\n\r\nCall 0808 189 2301 or <a href="https:\/\/enquiries.onlinemortgageadvisor.co.uk\/match-me-with-a-furlough-mortgages-specialist" target="_blank" rel="noreferrer noopener" aria-label=" (opens in a new tab)">make an enquiry<\/a> and we\u2019ll match you with an expert broker for a free, no-obligation chat about your circumstances today.