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The perils of remortgaging after coronavirus financial support

It feels unjust. Yet if you have been a recipient of personal Covid-based financial support, both furlough and the self-employment grant, remortgaging can at best require more paperwork, at worst be kiboshed entirely.
 

• Furlough - expect scrutiny or even rejection. For those who were on furlough, but are now fully back at work, the lender will want to see proof of your return to work, usually via at least one month's payslips. That should be enough, and things will then work as normal.
  
  It's trickier if you're still on furlough or part furlough. It doesn't automatically exclude you, but of those we checked only three of 13 lenders accept furlough income as part of a mortgage application - the rest ignore it for their calculations, meaning rejection or a smaller mortgage offer.
  
  See our How much can I borrow? guide for more on how furlough can affect your ability to remortgage.
  
  
• The self-employment grant is a hurdle for remortgagers. While receiving a SEISS grant in the past isn't an automatic reason for mortgage rejection, sadly some have been told it is evidence of business viability problems (as by applying you declared you needed help) and have been rejected.
  
  Though receiving an earlier grant but not a later one can sometimes be viewed as evidence of a turnaround.
  
  For those still receiving SEISS grants, of the 13 lenders we asked, six explicitly said they don't take money received from a SEISS grant into account, while only two said they would - the rest were vague. There are no hard and fast rules.
  
  As for whether those who are eligible, and struggling, should still apply for SEISS 5 when it comes out, my view is if you need the cash, do it - mortgage savings are usually no substitute for direct cash being paid into your account.

For those struggling to get a mortgage due to these schemes, product transfers from your existing lender, and using mortgage brokers, are the best routes to navigate through this.