Data from Legal & General Mortgage Club shows searches for mortgage products suitable for furloughed borrowers increased significantly between October and November 2020
14 Dec 2020
New data from Legal & General Mortgage Club has revealed a sharp increase in the number of searches completed by advisers looking for furlough-friendly mortgages between October and November. In October, Legal & General’s SmartrCriteria tool, which helps advisers quickly determine which lenders would consider a particular mortgage applicant, recorded 175 searches for furlough-friendly products. However, in November, this increased by 230% to 577 searches.
Since the Government’s announcement on 5th November confirming that the Coronavirus Job Retention Scheme would be extended until March 31st, the numbers of furloughed borrowers wishing to secure new mortgage finance has skyrocketed as advisers work to secure suitable finance options for borrowers across the UK.1
Kevin Roberts, Director, Legal & General Mortgage Club: "Following the Chancellor’s announcement last month confirming the Government’s commitment to extend the furlough scheme, we are seeing more borrowers turn to the expertise of mortgage advisers to find furlough-friendly mortgages. Our latest findings from SmartrCriteria suggest the numbers of people looking for these products increased significantly in response to the extension of the scheme. Other incentives such as the Stamp Duty holiday have also made this an attractive time for furloughed workers to press ahead with their homebuying plans as they look to potentially save thousands in tax before 31st March.
Despite ongoing disruption caused by the coronavirus crisis, the mortgage market remains open to all types of borrowers. Furloughed workers still need access to mortgage products and they shouldn’t assume that their circumstances mean they are locked out of the mortgage market. There are options and speaking to an independent mortgage adviser who can help navigate the available products should be everyone’s first step."
Notes to editors
Established in 1836, Legal & General is one of the UK's leading financial services groups and a major global investor, with over £1.4 trillion in total assets under management* of which a third is international. We also provide powerful asset origination capabilities. Together, these underpin our leading retirement and protection solutions: we are a leading international player in pension risk transfer, in UK and US life insurance, and in UK workplace pensions and retirement income. Through inclusive capitalism, we aim to build a better society by investing in long-term assets that benefit everyone.
*at 31 Dec 2021
Legal & General Insurance (LGI) has been offering life insurance cover since 1836 and is the UK’s number one individual life insurance provider. Our group protection business in the UK offers life insurance and income protection products to individuals through their employers and we offer term-life insurance in the US. We now have over 5.5 million UK life insurance customers, 1.8 million people in group protection schemes and approaching 1.3 million US term-life insurance policyholders. Here in LGI, we protect our customers and their loved ones throughout life and death.
(As of June 2021)