Mortgages and Furloughed Pay

keiranc1

Hello there
I am a first time buyer, and my partner and I have decided to take out a small mortgage to get a slightly bigger house, we can afford a 2 bedroom house @ appx 120K, but frankly, they are a bit on the small side.
We went via an estate agent to enquire about a mortgage (45K), and they put us in contact with an independent advisor, who came back to us and said to get a mortgage we would need 3 x payslips of normal pay, without furlough.
My response was basically a cut and paste from a government webpage stating that furlough is extended to the end of September, but for us, a wage packet without furlough means we will have to wait until December to provide this information.
My hours at work were cut dramatically over the Rona crisis, but our restaurant got lucky, some people across the company were actually made redundant.
My "normal" hours were contracted 30+ (always ended up around 35-40) because I would stay on longer or pick up shifts, but with the reduction I have a minimum of 14 per week, which, is what my furlough was based upon.
All I am after is a little bit of clarification really, or am I confusing the furloughed wages with the furlough time period?
I hope this makes sense

K_S

@keiranc1 Sorry, it's not clear what your question is. If you're asking if you can potentially get a mortgage while on furlough, the answer is yes as there are lenders who will consider. Whether your particular circumstances and numbers qualify is another question. If you have had a fact-find and advice from a whole of market broker and they have said that you can't get a mortgage before coming off of furlough, then that might well be the case. If you don't have confidence in what they said, then you can get a second opinion.

moneysavinghero

Why would you have to wait for December? The furlough ending at the end of September is not a target for companies to keep paying furlough till. They can end your furlough and get you back on normal pay at any time. Restaurants are opening back up now so no reason why your hours should not start to increase - unless of course your role is now surplus to requirements. This is what the mortgage providers fear - that come the end of furlough you will find there is no job there and you will then struggle to pay off the mortgage. But as K_S says there will be some mortgage providers who will happily take you on with furlough pay - but you would pay a higher interest rate and may have to put down a bigger deposit.

Are you sure you want to be taking on this commitment before your position at work becomes clearer?