23 Mar Furlough-Friendly Mortgages
Demand for furlough-friendly mortgages continues to rise
Demand for furlough-friendly mortgages remained strong in February as more borrowers sought lending options while they were supported on the government scheme.
According to L&G research, the number of furloughed borrowers looking to secure new mortgage finance had “skyrocketed” since the government extended the furlough scheme until the end of March.
While lockdown restrictions are set to be eased, around 4.7 million individuals remain reliant on the government’s furlough scheme and the research figures suggest that activity in the mortgage market has remained strong in the opening months of 2021. Rising house prices, stoked by strong market demand, could also be placing pressure on buyers to seek out more affordable routes onto the housing ladder.
Despite ongoing disruption caused by the coronavirus crisis, the mortgage market remains open to all types of borrowers. Furloughed workers still need access to mortgage products and they shouldn’t assume that their circumstances mean they are locked out of the mortgage market. The wide-ranging implications of COVID-19 are continuing to play out in the mortgage market and it’s clear that advisers are playing a critical role for borrowers.
The L&G research showed that mortgage brokers were sourcing furlough-friendly mortgages more than any other criteria in February, according to L&G Mortgage Club research.
Lee Howard, Howard Mortgages, said: “As well as remortgage enquiries, we’ve seen an increase in furloughed applicants enquiring about mortgages, however mortgage lenders are being more restrictive. In most cases, as well as the usual credit and disclosure documentation, a letter from employers with a firm return to work date is required.”
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