Mortgage Options for Homeowners on Furlough from Work

Advice for homeowners looking for a competitive mortgage deal - but with a temporary reduction in income due to being on furlough from a contracted employment position.

About your mortgage

Error: Yearly income income must be between £1 and £10,000,000.

Error: Regular bonus must be between £1 and £10,000,000.

Based on your yearly income, you may be able to borrow:


Most lenders will let you borrow 4.5 times your annual salary so, as long as you have a standard 10% deposit, you should be able to borrow this much.


Depending on your personal circumstances, some lenders may let you borrow 5 times your salary.


Lenders usually cap the amount they lend at 5.5 times your salary, so it’s unlikely you’ll be able to borrow more than this.

This calculator is an estimation of how much you could borrow. If you’re ready to take out a mortgage, speak to a Revolution brokers to see what options are available.

Mortgage Options for Homeowners on Furlough from Work

Millions of people in the UK have found themselves on furlough during the Coronavirus pandemic. They may not know whether they can still apply for a mortgage or how a potential drop in income might impact their approval chances.

Here we'll run through what a furlough period means for your mortgage and what questions to expect from a lender.

For more assistance with your application, give the Revolution Brokers team a call on 0330 304 3040, or drop us an email at

Can I Apply for a Mortgage if I am on Furlough?

You can indeed, whether you need a new mortgage, a remortgage or another secured loan.

If you have been on furlough and now returned to work, it shouldn't make a great deal of difference. You remain in stable employment, and so there isn't a massive increase in risk.

However, a lender might ask for more information about the employer. If there is a chance that the business will close or the job is under threat, a lender might be reluctant to lend if you may find yourself in a redundancy situation.

Does Furlough Make it Harder to Get a Mortgage?

The main issue is whether the furlough is short term, and your job stability isn't at risk, or whether the employer is in a hard-hit sector.

Most lenders will look at the length of your contract and how much you earn on average per year if you have experienced a short-term drop in income.

Can I Still Get a Second Home Mortgage Having Been Furloughed?

Second-home mortgages already require more stringent affordability checks. The lender needs to be confident that your income can cover the repayments on both your primary mortgage and that against your second property.

If you have any record of missed payments or credit issues, you might find it challenging to be approved for a second home mortgage.

Being furloughed shouldn't have an impact in most cases, provided there are no other prominent risk factors.

How Can I Get the Best Mortgage Rates After Returning from Furlough?

The best option is always to work with a whole-of-market broker who can recommend the best mortgage deals currently available on the market.

Suppose you are worried about being approved due to furlough. In that case, a broker can negotiate on your behalf with the lender and put forward your case to evidence why your application is viable and your employment stable.

There are a few ways to improve your approval chances, such as offering a larger deposit or other security to offset the risk.

Can I Remortgage My Home after Being on Furlough Leave?

Yes, there is no reason your remortgage application should be affected, provided your role is stable, and there is no doubt that the employment will continue.

Most lenders will make an offer based on your regular salary. Some will calculate the maximum based on your last year's earnings, and so the total may be slightly lower if you had a 20% pay drop during the leave.

Is It Possible to Get a Mortgage If I am on Furlough Now?

Again, as long as it's definite that you will return to work at some point, and your employment is secure, you can get a mortgage whilst on furlough.

Lenders will likely ask for a reference from your employer and a copy of your first payslip when you are back to work to ensure that your application is legitimate.

With furlough being so widespread across the UK, most high street lenders consider these applications. You'll also find competitive rates from niche mortgage providers and challenger banks, which are often a lot more flexible.

What Can I Do If I am Having Mortgage Problems Due to Furlough?

Most people on furlough are receiving around 80% of their regular salary. That 20% drop in income can be a severe problem for homeowners who don't have any back-up savings on a tight budget.

Mortgage lenders have been advised to offer support in these situations, and there is a moratorium on property repossessions due to financial difficulties caused by the pandemic.

In many cases, you can apply for a mortgage payment holiday. The interest will still accumulate, but you can take a break from payments for three months.

Some lenders also offer mortgage customers the option of switching to interest-only for their furlough period, meaning that your monthly payments significantly reduce.

Professional Mortgage Advice for Furloughed Homeowners

If you are on furlough and looking for a mortgage or are concerned about eligibility returning to work, the first step is to consult an independent broker who can recommend the best lenders and borrowing products relevant to your circumstances.

Call mortgage advisors on 0330 304 3040, or email us at to arrange a good time to talk.

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FCA disclaimer

The content included in our articles, blogs, web pages and news publications is based on information accurate at the time of writing. Note that policies and criteria can change regularly throughout the UK mortgage lending market, and it remains essential to contact the consultation team to receive up to date guidance. The information included on the Revolution Brokers site is not bespoke to any circumstances or individual application scenarios and therefore is not intended to be used as financial advice. The content we share is designed to be informative and helpful but cannot be relied upon to provide individual advice relevant to your mortgage requirements. All Revolution team members are fully qualified, trained and experienced to provide mortgage advice of an independent nature. We collaborate with lenders and providers who are regulated, authorised and registered with the Financial Conduct Authority (FCA). Should you require specific mortgage borrowing types, some products such as buy to let mortgages may not be FCA regulated. The Revolution team can provide further information about regulated and unregulated lending as required. Please remember that a mortgage is a debt which is secured against your home or property. Your home can be at risk of repossession if you do not keep up with the repayments or encounter any other difficulties in managing your mortgage borrowing responsibly. This also applies to any remortgage or home loan secured against your property, including equity release products.

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