A recent report from the BBC highlighted the difficulties faced by those still on furlough in securing mortgages.
They went on to suggest that "most" of the lenders it talked to were not accepting mortgage applications from people who received government grants during the pandemic.
Meanwhile, some brokers are quoted as saying that banks often see those who have taken Government cash over the last year as "high risk".
Alarming stuff.
It goes on to say that NatWest and Royal Bank of Scotland are flat-out refusing mortgage applications from people who took the Government's self-employment income support scheme (SEISS) grant.
With banks examining the last two years of accounts to work out how much people earn, this means that self-employed people could still be affected in 2023.
However, there are lenders out there who will still lend to those:
- people on or who have been on furlough
- self-employed who've taken grants
- those deemed to be in "riskier" industries
In the last few months we've arranged mortgages for airline pilots, self-employed hairdressers and people who've been on furlough for nearly the whole pandemic.
Lenders are being selective and more cautious as it can be harder to evidence income and they're required to lend responsibly, but through the advice of a broker you can find options.
Our advice is: don't despair. There are still opportunities in a post-pandemic world who will lend to you so that you land your dream home.
Give us a call for an informal chat.