The coronavirus pandemic has affected people all over the UK and the world. One of the biggest ways in which it has affect people is financial issues. Millions of people in the UK have taken advantage of the furlough job retention scheme and many people have also lost income or lost their job! There are a few ways in which you can get help from the government if you are struggling with your repayments, but you may also be looking to get a loan too. Whether it be a personal loan, car finance, mortgage, credit card or any other type of loan or credit then you may be unsure whether you will be accepted or not.
Will you be accepted?
Data from the first lockdown in 2020 shows that it is harder to get accepted for a loan or finance deal. For the lender, the financial economy is still very varied in 2021 and they are wary to lend money out. With the furlough scheme also still running in the UK, many lenders still remain closed too, making the chances of being approved slimmer than before. However, not all hope is lost! If you are looking to apply for any type of loan or finance agreement, then it is always recommended that you get your credit in the best place possible before you start applying. There are many easy ways in which you can increase your credit score and improve your chances of getting approved!
Can you get a mortgage during coronavirus?
The number of mortgage products on offer has reduced significantly since the start of the pandemic and it has made it harder for first-time buyers to get a mortgage. Many lenders also won’t accept people on furlough pay as it could result in them becoming unemployed and they are also only earning 80% of their usual wage so they may not be able to afford it. Some lenders such as Barclays and Halifax will only consider applications with 35-40% equity or deposit. It’s best to check your chances first before you apply.
Can I get a car loan during coronavirus?
Whilst many car finance lenders are still closed, there are many lending companies who are still operating remotely. You could consider using a car finance broker too, they can help you get matched up with the most suitable lender for you from a wide lending panel. Your application can be approved and paid out fully contact-free and then you can get your car from any FCA approved dealership across the UK. Dealerships have been advised to close to the public, but you can use their websites and also ask for live videos and photos of the car you would like. You can then benefit from contactless delivery or click and collect, depending on your chosen dealership. Even if you are applying for a bad credit car finance loan, there can still be many options for you using an online bad credit specialist. If you already have a car loan which you are struggling to pay then you can also apply for a car finance payment holiday which delays your payment but you will have to pay it off in the end, it does not abolish the amount you owe.
Can I get a credit car during coronavirus?
The demand for credit cards since March 2020 has been on the rise month on month. UK Google searchers in the UK have been searching for ‘credit’ at a rapid rate since the first UK lockdown. Many people have used credit cards to help ends meet if they have been made unemployed redundant or put-on furlough. Whilst the demand is high, it has also been easier to get accepted for a credit card. None of the big credit card lenders had announced that they will cease to approve applications. However, just like at any other time of the year, you will benefit from the best offers and credit limits if you have a better credit score.
