Pandemic impacted 40% of workers financially

Two fifths (39%) of UK workers saw their income decrease during the pandemic, highlighting the vast financial impact of Covid-19.

Over a quarter (27%) of the self-employed saw their employment status change during the pandemic.

Younger workers were also particularly hard hit by the pandemic, as a third of 18-35-year-olds experienced some change to their employment status, almost three times that of over-55s.

Peter Beaumont, chief executive of The Mortgage Lender, which conducted the research, said: “It’s incredibly eye-opening to see that such a large proportion of UK adults experienced a change to their job status since the pandemic, with a big proportion of those losing income.

“More than 18 months on and we are beginning to see the long-term financial impact of this. While people who were furloughed, or who made use of payment holidays, were promised that it would not impact their credit history, we are seeing anecdotal evidence that this may not be the case.

“In a frenetic property market, where demand is high and supply is low, prospective buyers are under pressure to react quickly and be agile when securing a mortgage. In reality, lending decisions don’t typically fit real-life borrowers. This is especially true following the pandemic, where we’re seeing an influx of people with potentially adverse or imperfect credit histories.”

A tenth of UK workers were furloughed by their employer, typically for six months.

A significant three quarters (74%) of those planning to buy a property in the next year saw their income reduce or become more volatile.

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