Legal & General Mortgage Club’s SmartrCriteria tool recorded 577 searches for furlough-friendly mortgages in November
The number of UK workers looking for furlough-friendly mortgages skyrocketed during November following the extension of the Coronavirus Job Retention Scheme last month.
Searches for mortgage products suitable for furloughed borrowers rose 230 per cent between October and November, according to Legal & General Mortgage Club.
Its SmartrCriteria tool, used by advisers to match customers with suitable lenders, recorded 577 searches for furlough-friendly mortgages in November, up from 175 searches in October.
Following the Chancellor’s announcement last month, we are seeing more borrowers turn to the expertise of advisers to find furlough-friendly mortgages, said Kevin Roberts, director at Legal & General Mortgage Club. Our latest findings from SmartrCriteria suggest the numbers of people looking for these products increased significantly in response to the extension of the scheme.
For those furloughed workers still hoping to take advantage of the stamp duty holiday and press ahead with their home buying plans, Roberts said there are still options open to them.
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, he said. There are options and speaking to an independent mortgage adviser who can help navigate the available products should be everyone’s first step.
Since the job retention scheme was extended, most lenders have not been accepting furloughed income according to David Hollingworth, associate director at L&C mortgages.
In most cases lenders will now want to see that the borrower is back at work with a letter from the employer and at least one payslip confirming this, said Hollingworth. Some lenders may be able to consider it on a case-by-case basis but for many they will need to return to work as furlough income is not being accepted by most lenders.
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