Lenders are adjusting their affordability criteria for new applications in response to the impact of Covid-19 on borrower’s incomes. The adjustments will vary from lender to lender and the type of employment (permanent full time, zero-hours, self-employed etc). Most borrowers will be in receipt of a salary and if that income is reduced, or the job is furloughed, the lender will base income and affordability on the reduced figure. This will mean significant reductions in the maximum amounts that applicants will be able to borrow, particularly those earning in excess of £30,000.
This will mean that many borrowers will decide to delay applications until incomes revert to normal.
Please call for further information, or to discuss how this may affect you.