Self Employed and Furlough

holly1994

Myself and my partner are trying to apply for a mortgage (pre lockdown we were absolutely fine) but now as my partner is self employed and I’m on flexi furlough, 100% 4 days a week and 80% furloughed one day a week. My partner also took the SEISS grant as he was eligible, however we are now up against most lenders lending based on the grant as his salary and then still only 80% of it!!

Is anybody else having issues with this, if so what lenders have you found to be useful? Any advice would be great. I don’t understand how banks are allowed to do this! 

[Deleted User]

Allowed to do what?

Your company doesn't have enough work to bring you back full time so that brings in to question the ongoing viability of your income. 

Your partner only has income documents for 2019-2020 at best.  There is no documentation showing how covid impacted his income and by taking the government grant it is an admission that it impacted the business enough to ask for help. 
If you ask your partner to tell you how much net profit he will earn between April 2020 and April 2021 can he tell you with a 100% confidence?  If he can't then how can a lender be expected to lend you a great sum of money on figures that are out of date?

Would you lend money to someone in an insecure job and with year old income proof?

RE your actual question.  It seems to be coming down to how the underwriter is feeling on the day. I've heard of some lenders being flexible with self employed but then I've heard other brokers complain about trying to use them and getting the run around for weeks and weeks to be declined.  
I don't think any lender is advertising as being self employed friendly at the moment.   The furlough thing is easily overcome,  it's the self employed bit you will struggle with.

Are you using a broker?  It's really a must with any self employed at the moment.  They can call round the lenders and pitch the case to. See how they feel about it prior to application 

Brock_and_Roll

The bigger question is whether it is wise to try and buy a house right now and make a 25-year+ financial commitment with a potential cloud hanging over the employment and income prospects.
Waiting 6 months or so would seem eminently sensible to see how things pan out unless you are living is a cardboard box in the middle of the road - you are certainly not missing out on house price rises.

Rebecca5833

hi, Ive had a real issue, me and my partner had reserved a shared ownership property, and we cant get a mortgage as im on furlough and work for an airline. We have given up now will have to save more now!