Can you get a Mortgage on Furlough?

Yes, in some cases you can get a Mortgage on furlough.

Speak to a Mortgage Advisor

Can you get a Mortgage on Furlough?

Yes, it is possible to get a Mortgage on Furlough.

Most Mortgage Lenders will want to see you have been back to work for at least a month.

However, each Mortgage Lenders criteria is different and changing regularly at the moment, as lenders try to adapt.

The more confident the lender can be that you do have a job to return to, the greater the chance you have of being accepted.

Applying for a Mortgage while on Furlough

If you are on Furlough and are looking to obtain a Mortgage, it can be tricky.

Most Mortgage Lenders will require a latest payslip to show that you are back off Furlough before using your income to support your Mortgage Application.

If you are unable to satisfy this, then there may be a few Lenders that will consider your income and application still. But this is a fast moving piece of criteria, so this could change.

If you are able to provide a letter from your employer stating when you will be back to work, this will help your case.

Does Furlough affect my Mortgage Application?

Yes, Furlough does affect your Mortgage Application and this can happen in a few ways.

You could go onto furlough before, during or after the Mortgage Application.

If whilst in the middle of your application you are put onto Furlough.

You may have already provided all the documentation, including payslips, the lender requires from you.

You would be expected in this instance to let your Mortgage Lender know if your circumstances have changed.

And this could negatively affect things.

You could also be put onto furlough after applying and having your Mortgage already formally approved.

This is covered below under it’s own subheading; Furloughed after Mortgage Application approved.

Furloughed after Mortgage application approved

Whilst most Mortgage Lenders won’t proactively chase you to see if you have gone onto furlough.

They will expect you to let them know whether you have gone on Furlough.

Some Lenders are asking borrowers to sign a declaration stating their circumstances haven’t changed, prior to completion. But this is rare.

There will also be an expectation on your Mortgage Broker to tell the Mortgage Lender if your circumstances have changed.

This is pretty standard though and has always been expected of Mortgage Brokers.

Again, most Mortgage Brokers aren’t expected to proactively chase customers to ask if applicants have been furloughed.


Can I get a Mortgage after Furlough?

Yes, most mortgage Lenders will accept you providing you are back from Furlough.

Usually a latest months payslip to show you are back will suffice.

In some cases lenders will require you to be back 3 months or provide a letter from your employer to confirm you are back. But this is rare.


Can I get a BTL Mortgage while on Furlough?

Yes, you should be able to get a Buy to Let Mortgage while of Furlough.

Your employed income isn’t as important on a BTL Mortgage Application.

This is because the rental income of your property will need to support your Mortgage.

For that reason, furloughed applicants looking to take out a BTL Mortgage are less risky than those looking to take out a Residential Mortgage. Where employed income is the usually the main supporting income.

What documents will the Mortgage Lender need?

When obtaining a Mortgage during or after Furlough, the documents you will need to supply are much the same as anyone else would.

You will need to supply proof of your income:

Latest 3 Months Payslips

Latest 3 Months Bank Statements to show Income and Outgoings.

I.D. such as a Driving License or Passport.

You may also need to provide:


Employers or Landlords Reference.

Proof of Address.

There are of course some cases where other documentation may be required.

Risks of taking out a Mortgage while on Furlough

As well as considering whether there are any Mortgage Lenders that will lend to you while on Furlough.

It is also worth considering whether you feel comfortable taking out a Mortgage whilst Furloughed.

If after your Furlough ends, your employer is unable to keep you on, you of course run a large risk of sadly being made redundant.

Consider whether you are going to be able to repay your Mortgage should you lose your income altogether.

Falling behind with repayments on your Mortgage can negatively impact you for some years after. As you try to rebuild your credit and repay your arrears.

Of course, you also run the risk of losing your home if you are unable to repay your Mortgage for a number of months.

Support for Applicants while of Furlough

During the financial crash of 2007-2008 borrowers were largely left to fend for themselves.

As a result, a large number of borrowers lost their jobs and found themselves unable to repay their Mortgage.

Due to the large rate of unemployment and the appetite to buy property in uncertain times.

Property prices slumped, which left many borrowers unable to sell to repay their Mortgage. This resulted in large numbers of repossessions and Lenders as well as Borrowers were left with huge losses.

Fortunately, there has been Government support for many during Covid, though certainly not for all!

Mortgage Repayment Holidays were the main support.

Whilst Mortgage Repayment Holidays aren’t new, they were largely not considered by borrowers to be an option.

If you truly believe you are going to fall into arrears on your Mortgage, the best thing you can do is take a payment holiday to help you.

If you can survive without, try your best to do so. As Mortgage Lenders won’t continue to permit Repayment Holidays. And if you take one now, Lenders may be less inclined to approve one again in the near future.

In addition to this, Universal Credit and Furlough was introduced.

What’s next?

Speak to a whole of market Mortgage Brokers which can provide you with the specialist Mortgage Advice you need.

Please complete the above contact form at the top of the page.

Or you can contact us here.