Furloughed buyer

[stefan_k]

Hello,

I'm currently selling house and the completion was set to this week. The Buyers solicitor requested the money from lender, but the lender declined mortgage application because buyer has just been furloughed. Is there any lender who still gives mortgage to furloughed people? Should I wait until buyer is put back onto full time?

Thanks,

[Stuart Phillips]

Ive limited information on this at present, but from what i can see lenders are reducing a clients income by 80% for affordability purposes where they have been furloughed. Only a few lenders are mandating this and the rest are giving vague "we will consider every case on its merits" answers.

New applications are also going to be unrealistic for most on residential purchases unless they have a large (40%+) deposit.

Ultimately this isnt in your hands. If the buyer is motivated there are options out there, they might be more expensive, they might need to employ a broker and they might need a higher deposit. If they cant or wont persue these things then you might have no choice but to wait until they are in a position to get a new mortgage offer.