In these difficult and uncertain times with COVID-19, we are still here to help you with all of your mortgage and protection needs.
Research shows that there are currently around 375,000 property purchase transactions on hold. However, it is still possible to purchase a new property with more lenders re-entering the market or current lenders offering an increased product range every day.
Financial Support Available
Furlough Scheme (80% of Salary)
Under this scheme, all UK employers are able to access this support to continue paying part of their employees’ salary for those that otherwise may have lost their jobs. HMRC will reimburse 80% of the furloughed workers wage costs up to £2,500 per month up until the end of July. This scheme has been extended but from August to October employers will be sharing the costs with HMRC.
Most lenders continue to accept mortgage applications, for both purchases and remortgages for clients who have been furloughed. Typically they will look to use 80% of the normal income for their affordability assessments of the new mortgage (to be in line with the income you will receive from this scheme). Some lenders have confirmed that where the employer is topping up your income to 100% of your normal salary then this may be taken into account for your mortgage application
Self -Employed Income Support Scheme
Similar to the Furlough Scheme this delivers a taxable grant of 80% of your profits if you’re self-employed. Again this is up to £2,500 a month. This is open to you with a trading profit of less than £50,000 in your 18/19 accounts. Or an average of below £50,000 from your last 3 years accounts.
Majority of lenders are asking that the latest accounts are submitted with the application and they will refer these applications for manual underwriting.
Mortgage Payment Holiday
Mortgage lenders are supporting all customers including buy-to-let borrowers who are experiencing issues with finances due to COVID-19 with payment holidays up to 3 months.
You need to agree this with your lender so that they can organise this for you – Do not just stop paying as this could have a serious impact on your credit report.
Statutory Sick Pay
If you are advised to self-isolate or caring for someone who is you are entitled to SSP. If you are not eligible for SSP (such as the self-employed) there may be alternatives through the Governments welfare system.
Income Protection Policies
Provided your monthly premiums are maintained, this policy will pay a monthly benefit amount for the benefit period, should you be unable to work due to accident, illness or in some cases unemployment. The pay-out is usually a proportion of your income which can be for up to a year or until you return to work.
If you already have a policy that protects your income, you may well be able to make a claim to receive the benefit amount confirmed on the policy terms.
If you need any help with any of the above and how it can relate to your mortgage and protection needs please get in touch today. Either fill in the form or give us a call on 01332 821 340
Further information on any of these schemes can be found at gov.co.uk
