News that the government’s Job Support Scheme (JSS) has been expanded to cover businesses forced to close due to COVID-19 restrictions is welcome, but there are questions about how this will impact mortgage borrowers, according to Trussle.

Miles Robinson (pictured), head of mortgages at Trussle, said: “The Chancellor’s announcement of the Job Support Scheme extension to tackle local lockdowns will be welcomed by many workers in the worst-affected industries.

“Following the impact that the furlough scheme had on the property market, many borrowers will have questions about how the new scheme might affect their mortgage.

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Job Support Scheme expanded

“Homeowners and house hunters are already facing increased scrutiny from lenders, tighter criteria and rising house prices.”

Robinson added that the JSS expansion, might, much like other interventions thus far, add complications down the line.

He said: “If lenders’ actions following the furlough scheme are anything to go by, those placed on the new Job Support Scheme will face unprecedented challenges.

“In response to the newly added job status of ‘furlough’ earlier this year, 70% of lenders tightened their policies and 92% of all 90% loan-to-value mortgage deals were pulled from the market.

“Whilst we don’t know for certain, it could prove challenging for lenders to support the government’s job scheme on a local level.

“It’s likely that the lack of mortgage products available has been driven by lenders’ operational capacity and soaring demand.

“Add to this a regional element, and the economic implications of a second lockdown, we could start to find that the risk is too great.”