You are here: Home - Mortgages - Buy To Let - News -

HSBC restricts mortgage lending for some furloughed workers

Written by: Lana Clements
HSBC is no longer accepting furlough employees who have no return to work date or where the return is more than three months away.

The lender is the latest to toughen criteria related to employees who have been put on paid leave from their job.

However, HSBC is still accepting applications from workers on furlough although the latest payslip is needed, alongside a letter from the employer confirming the borrowers return to work income and return to work date.

The type of contract the employee is returning on will also need to be outlined, including whether it is full or part-time and a permanent or fixed-term contract.

For furloughed employees returning to work, post-furlough income can be used in the application.

A HSBC UK spokesperson said: We continue to be open for business and support the housing market, including lending up to 90% loan to value and providing new lending to customers returning to work from the government’s furlough scheme.

“In order to ensure our application processing is as timely as possible while continuing to lend responsibly, for customers on furlough we are asking for a letter from their employer providing details of return to work date and salary as part of the application process.”

Earlier this month, TSB stopped accepting income from furloughed workers whose salary was not being topped up by their employer.

At the end of June, it was calculated around 9.3 million workers have been furloughed by 1.1 million employers through the government’s job retention scheme which runs until the end of October.

It’s feared many employees will not return to work when the scheme ends and lose their jobs completely.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Coronavirus and your finances: what help can you get in the second lockdown?

News and updates on everything to do with coronavirus and your personal finances.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Privacy Preference Center





Read previous post:
Ryanair lockdown losses hit £169m

More than 99% of the budget airline’s fleet were grounded from mid-March to the end of June.