Property options can offset furlough fears
THE furlough scheme, which has been helping employees unable to work during the last year and a half of restrictions, came to an end yesterday. Research from Canada Life reveals how workers who have been on furlough have been able to boost their income throughout the pandemic. The most common way of making up the shortfall in income was borrowing money on credit cards, with 44 per cent of affected workers saying they have considered or done this, closely followed by 42 per cent borrowing money from family or friends, and 41 per cent who have, or have considered, taking out a loan. The findings also reveal that workers on furlough have been looking to use money tied up in their property to help make up any shortfall. More than a third of individuals on furlough have remortgaged or have considered remortgaging to unlock additional income. This is particularly the case for younger workers, with just under half of 18 to 34-year-olds having considered or done this. Alice Watson, head of insurance marketing at Canada Life, said: “The furlough scheme has provided much-needed support to millions of workers across the country.
“However, with fragile finances, many have had to consider other sources of income to boost their incomes, whether that be turning to friends and family, looking at forms of credit or accessing the wealth from property.”
Accessing equity tied up in property is likely to continue to be important, reckons Watson. She added: “Anyone considering accessing their property wealth should speak to a financial adviser, whether that be remortgaging or equity release. Given the market offers a huge range of choice and flexibility, contacting a financial adviser is a sensible first step.”