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The lending lowdown: What the end of furlough means for mortgages

Saturday, October 30, 2021

To say things have changed in the last couple of years would be an understatement. The way a lot of us work, earn a living and pay for the roof over our heads is different now. And although the government’s furlough scheme is coming to an end, we’re not going back to the old pre-pandemic normal any time soon. The good news is that the New Normal is positively brimming with opportunities.

Find out why with some valuable insights from our talented underwriters.

Many people may actually be better off
Although some sectors may have suffered redundancies, many of those who’ve kept their jobs have been spending less, and may even have been able to save. That means more first-time-buyers with a deposit (particularly with our improved LTVs), and more people looking to remortgage and renovate. And working from home has inspired many to think about moving up the ladder to a bigger home.

Job vacancies and salaries are up, particularly in a number of key sectors. In fact the Bank of England predicts unemployment will rise only slightly as furlough is phased out – a much better outcome than was initially feared.

And contracts are getting better, with many new jobs coming with three or six months’ notice rather than just one. Which means more security, and potentially more successful mortgage cases for you.

We’re also finding that people on furlough have been trying new jobs, starting businesses, going freelance and generally looking to change. In many cases, they’re doing better than ever.

When a challenge is an opportunity

Of course, the pandemic has caused financial problems for a lot of people. There’s been a big increase in defaults on phone bills and utilities, while a lot of people have taken advantage of mortgage holidays. Lockdown even caused a spike in relationship break-ups, throwing finances into turmoil for some.

Our view is that setbacks are usually temporary. And because all our underwriting is done by real people, giving fair consideration to even the most complex cases, we’re often able to help where other lenders won’t.

This all means brokers are in greater demand than ever. We’ve seen an increase in advisers searching for flexible criteria for prospective mortgage borrowers experiencing ‘financial complications’.

Better LTVs and criteria


At The Mortgage Lender we’ve been busy right through the pandemic, working hard to consider real-life loans for people in real-life circumstances. We’ve granted lots of new mortgages to people on furlough, for example. Now, as we (hopefully) come out of the crisis, we’re introducing new and better criteria for the New Normal. This should allow you to package even more successful cases, even for applicants with complex finances. The newly self-employed, for example, or people who rely on commission and overtime, or the ones who did miss the odd payment or two when things got tough.

We’re also bringing in new, higher LTVs. Great news for first-time-buyers, remortgagers and BTL landlords.

Let’s not let them down

We love to lend, and we can do that better when we know the whole story. So we ask brokers to prepare well before submitting applications. That way we’re likely to give you a successful outcome, without wasting anyone’s time.

You’ll find criteria and checklists on our website. You can also leave notes on the portal to highlight anything you think we might query. It’s always important to give us the documents we ask for, but don’t give us more than we need, as it may just hold things up.

Remember we do things the real life way, with the right people looking at applications in a supportive but responsible manner. So you can always chat through a case. Call our sales hub, or contact your local BDM. Once a case has been submitted, you can usually speak directly to an underwriter.

Brave New World

Saying farewell to furlough will have its challenges, but it comes with some real opportunities, too. There’s a great future ahead – and we’re working hard to make sure we’re all ready for it.

We’re here to help

Come to think of it, why not start that conversation now?

Please note article content was accurate at time of publishing

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