MILLIONS of workers are still on furlough as the Covid crisis continues.

The Chancellor is expected to extend the scheme until September, and it is expected that many Brits will still continue to get the government help.

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But can you still get a mortgage if you’re on the scheme? We explain what you need to know.

Can I get a mortgage on furlough?

It is possible to get a mortgage while on furlough – but you’ll probably find it tricky to get one.

You won’t be able to borrow as much as what you could if you were earning your wages in full.

Under the furlough scheme, workers get paid 80% of their wages.

When you’re applying for a mortgage, your loan will be calculated based on how much you’re earning at the time of your application.

For example, if you normally earn ÂŁ25,000 a year then you will be able to borrow a maximum of around ÂŁ112,500.

But if you're only receiving 80 per cent of your ÂŁ25,000 salary, your yearly earnings will be ÂŁ20,000 – meaning you can only borrow a maximum of ÂŁ90,000.

With a reduced loan, you might find the pool of available homes within your budget becomes smaller.

Are lenders giving out mortgages to people on furlough?

You might find that there will be fewer lenders who will be prepared to lend you the cash.

For example, TSB started listing furloughed workers salaries as just ÂŁ1 in joint mortgage applications.

This effectively means the bank will base the mortgage on the non-furloughed worker's wages – meaning a couple will be able to borrow less money.

Applications will only be taken into account if their boss is topping up their wages.

The furloughed worker will also be required to provide proof that their boss is committed to keeping them employed.

TSB says this evidence can be provided in the form of a letter dated within four weeks of the date of the full mortgage application.

Virgin Money is also not accepting applications from people on furlough. 

Will my bonus or commission still count towards how much I can borrow?

Usually, variable income such as commission, overtime and bonus payments count towards working out how much you can borrow to buy your home.

But unfortunately, many lenders have paused accepting this kind of income on applications due to the coronavirus cash crisis.

Once again, this could lower the amount that you are able to borrow and you may have to readjust your property budget.

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