London Daily

Focus on the big picture.
Sunday, Jul 12, 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
Government Creates Emergency Support Scheme for Financially Struggling Universities
United Kingdom Replaces Traditional Farm Subsidies With Payments Linked to Environmental Performance
National Grid Reports First Week of Electricity Generation Without Fossil Fuels
United Kingdom Financial Regulator Introduces Tougher Capital Rules for Cryptocurrency Exchanges
Belfast Harbour Expands Operations to Attract Investment Through United Kingdom and European Union Market Access
Scottish Government Threatens Legal Challenge Over Westminster Cuts to North Sea Transition Funding
United Kingdom Accelerates Trans-Pennine High-Speed Rail Project Linking Northern Cities
United Kingdom Secures Ten Billion Pound Investment for Cambridge Quantum Computing Campus
Port Talbot Steelworks Wins Support for Green Hydrogen Transition and Protection of Industrial Jobs
United Kingdom Sends Royal Navy Carrier Strike Group to Indo-Pacific as Regional Security Focus Expands
National Health Service Expands Artificial Intelligence Diagnostics Across England to Reduce Screening Backlogs
United Kingdom Launches Fifty Billion Pound Infrastructure Fund to Accelerate Housing and Construction
UK Medical Chiefs Update Health Guidance to Promote Everyday Physical Activity
Office of Communications Keeps Wikipedia Under Review Under UK Online Safety Rules
UK Defence Ministry Expands Deep-Strike Capability Through Precision Missile Programme
Russell Group Universities Warn Funding Cuts Could Damage NHS Workforce Training
UK Parliament Calls for National Emergency Broadcast as Heatwave Conditions Intensify
UK and Netherlands Strengthen Naval Cooperation With New Amphibious Defence Partnership
UK Defence Ministry Joins International Missile Programme With One Hundred and Ninety Million Pound Investment
Bank of England Warns Middle East Conflict and AI Risks Could Pressure UK Economy
UK Government Introduces New Rules to Limit Foreign Influence in Political Donations
UK and France Prepare Naval Mission to Protect Shipping Through Strait of Hormuz
United States Pressures UK to Increase Defence Spending at NATO Summit
Bank of England Warns Artificial Intelligence Investment Boom Could Create Financial Stability Risks
Bank of England Begins Direct Oversight of Critical Technology Providers Supporting UK Finance
Andy Burnham Set to Become UK Prime Minister After Labour Leadership Race Clears Path to Downing Street
Scottish Fishing Industry Calls for Emergency Support Amid Rising Costs
UK Supports Stronger European Response to Russian Actions in Ukraine
Devon and Cornwall Police Release Suspect in Ann Widdecombe Murder Investigation
Scottish MPs Demand More Government Support for Fishing Industry
UK Aviation Sector Faces New Rules as Parliament Reviews Passenger Protection Reforms
King’s College London Disciplines Students Over Pro-Palestine Campus Protests
Ministry of Defence Expands Military Capabilities Through New Precision Strike Investment
United Kingdom Condemns Russian Treatment of Ukrainian Children at International Security Forum
House of Lords Reviews Civil Aviation Bill to Strengthen Passenger Rights and UK Aviation Competitiveness
UK Aerospace and Defence Industries Contribute Nearly Forty-Seven Billion Pounds to Economy
UK Government Advances Consultation on Possible Social Media Ban for Children Under Sixteen
United Kingdom Ratifies Global High Seas Treaty to Protect Marine Biodiversity
United Kingdom Joins United States Precision Strike Missile Programme With One Hundred Ninety Million Pound Investment
UK Senior NHS Doctors Vote for Further Strike Action Over Pay and Contract Disputes
BBC Leadership Resigns After Donald Trump Launches Ten Billion Dollar Defamation Lawsuit
UK Fiscal Watchdog Warns Andy Burnham Government Faces One Hundred Billion Pound Budget Challenge
The AI Invoice Shock: Layoffs Didn't Save Managers Money — They Cost Them More
Concern: Sexually Transmitted Bacterium Among Men Develops Antibiotic Resistance
Following Massive Investor Demand: SK Hynix Raises 26.5 Billion Dollars on Nasdaq
Passenger Partially Pulled Out of Ryanair Jet After Cabin Window Fails Mid-Flight
After Four Years, and Under a Heavy Veil of Secrecy: King Charles Meets His Grandchildren, Harry and Meghan's Children
Cross-Party MPs Call for National Climate Emergency Broadcast
Bayeux Tapestry Arrives in the United Kingdom for Landmark Exhibition
United Kingdom Launches Modern Slavery Prevention Programme in Vietnam
×