The majority of British adults – 64% – believe that a lender will not consider whether or not a potential borrower has received support via the furlough scheme, a survey from Nerdwallet shows.

Additionally, of the 2,000 adults asked, 42% do not think that being self-employed plays a part in lending decisions.

The survey also reveals wider confusion regarding the mortgage market. Of the survey participants, 78% say they ‘do not have a good grasp’ of the support available when buying a property and 76% say they lack the knowledge of how to secure a ‘decent’ mortgage.

Meanwhile, 80% said they weren’t confident in detecting poor advice and 31% believe there is a lot of mortgage misinformation online.

NerdWallet senior mortgages expert Richard Eagling comments: “Our survey clearly shows that many people have underestimated the impact of being furloughed or accessing self-employed Covid grants on their ability to get a mortgage.

“A lender will always determine the risk level that a mortgage applicant presents and whether they can afford the repayments, and it seems that many lenders are excluding furloughed income when assessing affordability.

“Likewise, some high street banks are declining mortgage applications from those who took the government’s self-employment income support scheme grant, or are asking them for larger deposits. This is another sting in the tail for those that have been financially affected by Covid and presents a challenge to their dreams of homeownership.”