Arab Press

بالشعب و للشعب
Tuesday, Mar 17, 2026

"Can I get a mortgage if I'm only on 80% pay?"

"Can I get a mortgage if I'm only on 80% pay?"

"I have to laugh about this whole situation because if I didn't I'd cry instead."

Sophie Hockin, 29, was due to exchange on her first home on 6 April before the world changed and the deal fell through.

"The seller had financial concerns because of coronavirus and so pulled out".

Sophie's now on the look-out for a new home but is worried she won't be able to get the same mortgage as before the pandemic, because her salary's been cut.

"I still need to buy somewhere because I moved out of my rented accommodation in February, and am now house-sitting for a friend - only because he's stuck in lockdown at his parents' house though.

"But since lockdown, my salary was cut to 80% of what it should be, so I just don't know what's going to happen.

"My employer says 'salary reductions will be reversed when deemed safe to return to a normal routine which is hoped to be in approximately three months'.

"But we just don't know what's going to happen - whenever are we going to 'get back to normal?'"


Pay cut for millions

Sophie added; "I don't want to go back to renting. It's nearly impossible to save and I'd also have to get tied into at least a six-month or probably more likely a 12-month contract, which I really don't want to do."

Sophie is not alone. At least six million people have been 'furloughed' by their employer on the government's Job Retention Scheme (JRS), which means for many their pay has been cut to 80% of their salary - up to £2,500 per month - which the government is paying.

But many others, who are still working, have also seen employers cut their wages, all of which could affect a person's ability not only to get a mortgage, but also how much they could borrow.

UK Finance, the trade association for the banking industry, told Radio 4's Money Box: "It will be a matter for each individual lender to determine exactly what approach to take, but under FCA rules lenders must lend responsibly and consider the affordability of the mortgage in the long term.

"It would not be in the customer's interest to lend [them] more than they can reasonably afford. That is why a detailed income and expenditure assessment is undertaken before a mortgage is granted."

For anyone wanting an answer about their own specific circumstances, the only way to find out is by contacting any potential mortgage lender, talk them through their finances and see what the lender says.


Mortgage relief

Around two million people are thought to have made the most of the offer to take a three-month mortgage holiday from lenders.

Mortgage providers are also offering home-buyers who had exchanged contracts - but have not been able to complete the deal and move in - the option of extending their mortgage offer by up to three months, to allow the deal to take place after restrictions are eased.

That doesn't help in Sophie's case, as her previous mortgage offer was tied to the property she wanted to buy, which is no longer on the market.

Martin Stewart, founder and director of independent mortgage brokers, London Money, says most lenders are even more risk-averse than normal at the moment. "I would suggest if Sophie has had a 20% pay cut, lenders will be working off of her new lower figure and not her previous pre-crisis income. "If her employer is guaranteeing a return to full salary within a short period of time, it may be that some lenders can take a commercial view, but then a lot will depend on the other factors affecting the case - loan size, affordability, loan to value, credit score etc. They will also insist on written confirmation of when she may be returning to her full income. "Lenders are also paying much closer attention to the sectors that mortgage borrowers are working in. If they believe the at-risk industries such as tourism, aviation, hospitality etc are likely to take longer to return to any sense of normality, then they may well decide the risk is too high and ratchet back the lending or just simply not lend at all."

Newsletter

Related Articles

Arab Press
0:00
0:00
Close
Saudi Arabia Targets South African Professionals in New Recruitment Drive Amid Regional Uncertainty
Formula One Faces Major Financial Hit as Bahrain and Saudi Arabian Grands Prix Cancelled Amid Middle East Conflict
U.S. and Saudi Firms Launch Local Production of Attritable Drone Systems in Saudi Arabia
Saudi Arabia and UAE Warn Rising Gulf Tensions Could Endanger Regional Security
Saudi Arabia Rejects Claims It Encouraged Prolonged War With Iran
Saudi Arabia to Host World’s Largest Single-Cell Protein Plant as Food Security Push Accelerates
Saudi Crown Prince Urges Trump to Continue Military Pressure on Iran
Iran Intensifies Drone Campaign Against Saudi Arabia as Gulf Conflict Escalates
When Is Eid al-Fitr 2026? Saudi Arabia Awaits Moon Sighting to Confirm End of Ramadan
When Is Eid al-Fitr 2026? Saudi Arabia Awaits Moon Sighting to Confirm End of Ramadan
Iranian Missile Strike Damages Five U.S. Refueling Aircraft at Saudi Air Base
Iranian Missile Strike Damages Five U.S. Refueling Aircraft at Saudi Air Base
Washington State Pilot Among Six U.S. Airmen Killed in Military Aircraft Crash Over Iraq
Severe Storm Threat Looms Over Washington as Tornado Risk and Damaging Winds Target Mid-Atlantic
Trump Supports FCC Warning to Broadcasters Over Iran War Reporting
Trump Supports FCC Warning to Broadcasters Over Iran War Reporting
Saudi Stocks Edge Lower as Tadawul All Share Index Slips Slightly at Market Close
Iranian Missile and Drone Strike Targets Saudi Arabia’s Prince Sultan Air Base Hosting US Aircraft
Saudi Air Defenses Intercept Drone Over Eastern Province as Iranian Strike Campaign Intensifies
Middle East War Reshapes Gulf Economies as Saudi Arabia and Oman Gain Strategic Leverage While UAE Faces Economic Shock
Iranian Ambassador in Riyadh Blames ‘Enemies’ for Attacks Across the Gulf
Israeli Envoy Ron Dermer Reportedly Visits Saudi Arabia for Discussions on Potential Lebanon Talks
Formula One Cancels Bahrain and Saudi Arabian Grands Prix Scheduled for April
Iran’s Ambassador in Riyadh Rejects Claims Tehran Targeted Saudi Oil Facilities
Saudi Arabia Declares 2026 ‘Year of Artificial Intelligence’ in Major Push for Data-Driven Economy
Saudi Arabia’s 2018 Budget Signals Strong Push for Non-Oil Economic Growth
Pakistan Envoy in Riyadh Says Regional Diplomacy Intensifying to Prevent Wider Middle East War
Saudi Arabia Intercepts Dozens of Drones as Regional Strikes Kill Two in Oman
Saudi Arabia Redirects Oil Exports to Red Sea Ports as Strait of Hormuz Tensions Escalate
Saudi Arabia Intercepts Missile and Drone Barrage as Regional Conflict Intensifies
Iran Expands Drone and Missile Campaign Across Gulf as Conflict With US and Israel Intensifies
Muslims Worldwide Await Saudi Moon Sighting to Confirm Eid al-Fitr 2026 Date
F1 Calendar Faces Major Disruption as Middle East Conflict Threatens Bahrain and Saudi Races
Trump Says Most US Aircraft Hit in Saudi Base Attack Suffered Minimal Damage
Trump Says Most US Aircraft Hit in Saudi Base Attack Suffered Minimal Damage
Strait of Hormuz Crisis Forces Saudi Arabia Into Major Oil Production Shut-In
Strait of Hormuz Crisis Forces Saudi Arabia Into Major Oil Production Shut-In
Saudi Arabia Slashes Oil Output as Strait of Hormuz Crisis Cuts Deep Into Gulf Revenues
Saudi Arabia’s Cultural Scene Presses Ahead as Nation Navigates Regional War
Saudi-Pakistan Defence Pact Faces Real-World Constraints as Iran War Escalates
Saudi Arabia Offers Two Million Barrels of Crude From Red Sea as War Disrupts Gulf Exports
Formula One Faces Tens of Millions in Lost Revenue if Bahrain and Saudi Arabia Races Are Cancelled
Formula One Set to Cancel Bahrain and Saudi Arabian Grands Prix Amid Escalating Middle East War
Saudi Arabia Downs Dozens of Iranian Drones in Major Defensive Operation
Saudi Arabia Cuts Oil Output by About Twenty Percent as Iran War Disrupts Gulf Energy Flows
Formula One Set to Cancel Bahrain and Saudi Arabian Grands Prix Amid Escalating Iran War
Asian Energy Security Tested as Strait of Hormuz Disruption Threatens Oil Supplies
Iran Sets Three Conditions for Ending Regional War as Diplomatic Efforts Intensify
Saudi Arabia Launches Royal Institute of Anthropology to Examine Social Transformation
Pakistan’s Prime Minister Shehbaz Sharif Arrives in Saudi Arabia for High-Level Talks
×