London Daily

Focus on the big picture.
Saturday, Feb 21, 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

0:00
0:00
Close
UK Confirms Preferential U.S. Trading Terms Will Continue After Supreme Court Tariff Ruling
U.S. and U.K. to Hold Talks on Diego Garcia as Iran Objects to Potential Military Use
UK Officials Weigh Possible Changes to Prince Andrew’s Position in Line of Succession Amid Ongoing Scrutiny
British Police Probe Epstein’s UK Airport Links and Expand High-Profile Inquiries
United Kingdom Denies U.S. Access to Military Base for Potential Iran Strike
British Co-founder of ASOS falls to his death from Pattaya apartment
Early 2026 Data Suggests Tentative Recovery for UK Businesses and Households
UK Introduces Digital-First Passport Rules for Dual Citizens in Border Control Overhaul
Unable to Access Live Financial Data for January UK Surplus Report
UK Government Considers Law to Remove Prince Andrew from Royal Line of Succession
UK ‘Working Closely with US’ to Assess Impact of Supreme Court Tariff Ruling
Trump Criticises UK Decision to Restrict Use of Bases in Potential Iran Strike Scenario
UK Foreign Secretary and U.S. State Chief Hold Strategic Talks as Tensions Rise Over Joint Air Base
Two teens arrested in France for alleged terror plot.
Nordic Fracture: How Criminal Scandals and Toxic Ties are Dismantling the Norwegian Crown
US Supreme Court Voids Trump’s Emergency Tariff Plan, Reshaping Trade Power and Fiscal Risk
King Charles III Opens London Fashion Week as Royal Family Faces Fresh Scrutiny
Trump’s Evolving Stance on UK Chagos Islands Deal Draws Renewed Scrutiny
House Democrat Says Former UK Ambassador Unable to Testify in Congressional Epstein Inquiry
No Record of Prince Andrew Arrest in UK as Claims Circulate Online
UK Has Not Granted US Approval to Launch Iran Strikes from RAF Bases, Government Confirms
AI Pricing Pressure Mounts as Chinese Models Undercut US Rivals and Margin Risks Grow
Global Counsel, Advisory Firm Co-Founded by Lord Mandelson, Enters Administration After Client Exodus
London High Court dispute over Ricardo Salinas’s $400mn Elektra share-backed bitcoin loan
UK Intensifies Efforts to Secure Saudi Investment in Next-Generation Fighter Jet Programme
Former Student Files Civil Claim Against UK Authorities After Rape Charges Against Peers Are Dropped
Archer Aviation Chooses Bristol for New UK Engineering Hub to Drive Electric Air Taxi Expansion
UK Sees Surge in Medical Device Testing as Government Pushes Global Competitiveness
UK Competition Watchdog Flags Concerns Over Proposed Getty Images–Shutterstock Merger
Trump Reasserts Opposition to UK Chagos Islands Proposal, Urges Stronger Strategic Alignment
Greek Prime Minister Kyriakos Mitsotakis advocates for a ban on minors using social media.
Liberal Senator Michaelia Cash Accuses Prime Minister of Lying to Australians
Meanwhile in Time Square, NYC One of the most famous landmarks
Jensen Huang just told the story of how Elon Musk became NVIDIA’s very first customer for their powerful AI supercomputer
A Lunar New Year event in Taiwan briefly came to a halt after a temple official standing beside President Lai Ching‑te suddenly vomited, splashing Lai’s clothing
Jillian Michaels reveals Bill Gates’ $55 million investment in mRNA vaccines turned into over $1 billion.
Ex-Prince Andrew Mountbatten-Windsor's arrested
Former British Prince Andrew Arrested on Suspicion of Misconduct in Public Office
Four Chagos Islanders Establish Permanent Settlement on Atoll
Unitree Robotics founder Wang Xingxing showcases future robot deployment during Spring Festival Gala.
UK Inflation Slows Sharply in January, Strengthening Case for Bank of England Rate Cut
Hide the truth, fake the facts, pretend the opposite, Britain is as usual
France President Macron says Free Speech is Bull Sh!t
Viktor Orbán getting massive praise for keeping Hungary safe, rich and migrant-free!
UK Inflation Falls to Ten-Month Low, Markets Anticipate Interest Rate Cut
UK House Prices Climb 2.4% in December as Market Shows Signs of Stabilisation
BAE Systems Predicts Sustained Expansion as Defence Orders Reach Record High
Pro-Palestine Activists Cleared of Burglary Charges Over Break-In at UK Israeli Arms Facility
Former Reform UK Councillors Form New Local Group Amid Party Fragmentation
Reform UK Pledges to Retain Britain’s Budget Watchdog as It Seeks Broader Economic Credibility
×