With the hope that new build will be the driving force of the residential property market revival, many lenders are looking at how furloughed income can play a part in a successful new build mortgage application.
The majority of house builders have now returned to sites with social distancing measures in place, and so lenders are laying the groundwork to accommodate new borrowers’ unique and changing circumstances.
With the recent announcement from the government that the furlough scheme, which has already assisted 7.5m people, has been extended to October 2020, lenders will need to change their criteria if they wish to compete in the revival of the new build market.
While most lenders are accepting or considering furloughed income, criteria on other forms of income such as overtime, bonuses and commission have been more restrictive. In general, many lenders are able to accept furloughed income if it is evidenced, while other lenders may assess on a case-by-case basis or not accept it at all.
With criteria changing daily, contacting a financial adviser is the best option to understand fully the stances of the lenders in the marketplace.