Question 1

Can I get a mortgage if I was on furlough?

Accepted Answer

Yes — being on furlough does not automatically disqualify you from a mortgage. Most high street lenders now treat furlough as a closed chapter provided you have returned to full employment or self-employment and have a demonstrable, stable income today. The key factors are: how long ago the furlough ended, whether your income has fully recovered to pre-furlough levels, and whether your most recent payslips or accounts show that recovery clearly. Lenders typically want to see at least two to three consecutive payslips at your current salary if you were employed, or at least one full set of accounts after furlough ended if you are self-employed. Specialist lenders and brokers experienced with complex income are generally more pragmatic than mainstream banks about historical furlough periods.

Question 2

How do lenders treat furlough history on a mortgage application?

Accepted Answer

Lenders approach furlough differently depending on the underwriting policy. Some mainstream lenders automated their assessment and may flag any furlough period as a red light; specialist lenders tend to look at the full picture manually. Generally, underwriters want to establish three things: (1) that the furlough has ended and is not ongoing; (2) that your income has returned to at least the level it was before furlough, or that a credible explanation exists for any difference; and (3) that you did not accumulate unmanageable debt during the furlough period that would affect affordability. If you were furloughed in 2020 or 2021 and have been back at full income since 2022 or earlier, most lenders in 2026 will treat this as historic and apply standard underwriting criteria.

Question 3

Does receiving a SEISS grant affect my mortgage application?

Accepted Answer

The Self-Employment Income Support Scheme (SEISS) grants paid during 2020–2021 are treated differently from regular self-employed income by most lenders. SEISS grants are one-off government support payments, not trading income, so most lenders exclude them from the income calculation used to determine your maximum mortgage. If your most recent tax returns include SEISS grant income that inflated your reported earnings, a lender may recalculate affordability on your trading profit only — which could be lower. This is particularly important for sole traders and partnerships. Where your most recent self-assessment year shows SEISS income mixed with trading income, your broker should present accounts that clearly separate the two. Some lenders will require a second year of clean, SEISS-free accounts before lending at full multiples.

Question 4

What documents do I need if I was furloughed?

Accepted Answer

If you were furloughed, expect to provide additional documentation beyond the standard mortgage pack. Employed applicants should prepare: the most recent three months of payslips showing return to full pay, a letter from your employer confirming your current role and salary and that furlough has ended, and bank statements that confirm your pay has returned to pre-furlough levels. Self-employed applicants should prepare: the most recent two years of self-assessment tax returns and corresponding tax year overviews, with the furlough period clearly identifiable; ideally, the most recent year of accounts should show trading income without SEISS. In both cases, if there was any period of reduced income, a written explanation of the circumstances and the path back to your current income level can help underwriters present your case positively to credit committees.

Question 5

Can I use furlough pay as income for a mortgage?

Accepted Answer

Furlough pay itself — the 80% of salary received under the Coronavirus Job Retention Scheme — is generally not accepted by lenders as qualifying income for mortgage affordability. It was a temporary government payment, not a sustainable salary, and the scheme closed in September 2021. If you are applying today and your income during 2020–2021 was partially or fully comprised of furlough pay, lenders will look through that period and assess your current full income. Where the furlough period is captured within the income evidence you are required to provide (such as two years of accounts for a self-employed applicant), your broker may need to explain the figures or push for a lender that uses a longer averaging period that better represents your pre- and post-furlough income.

Question 6

Which lenders are most flexible about furlough history?

Accepted Answer

Specialist and challenger lenders — those that underwrite cases manually rather than through automated credit scoring — tend to be more flexible about furlough history than high street banks. Lenders that specialize in self-employed, contractor, or complex income mortgages are used to income that does not follow a straight line and are more likely to take a holistic view of your application. A whole-of-market broker can identify which lenders are currently accepting applications where furlough appears in the income history and structure your application to present the strongest case. As a general rule, the further in the past the furlough period and the cleaner the income picture since then, the wider the range of lenders that will consider your application on standard terms.

Furlough Mortgage FAQ