Put on Wage Subsidy Scheme - Will this affect mortgage application?

Newhomebuyer

Anybody with ptsb with a drawdown done. What documents are requested at drawdown?
We had to provide employer letter for EWSS not taken at loan approval stage.

klose

cubatahavana wrote: »

Solicitor received drawdown today from KBC. They asked for letter from employer at AIP stage. After that all was good. Didn’t ask for anything extra at drawdown

What exactly is the letter they ask for at AIP stage? We have sent in all updated documentation to AIB as we are in the process of buying our house and still have not been asked for a letter, it took ages to get our original AIP so I assume we have been well audited.

cubatahavana

klose wrote: »

What exactly is the letter they ask for at AIP stage? We have sent in all updated documentation to AIB as we are in the process of buying our house and still have not been asked for a letter, it took ages to get our original AIP so I assume we have been well audited.

It was before the EWSS, when covid payments showed on your payslip. They showed on mine for a couple of months, but then I was taken off it. They wanted the business to state that I was not getting the subsidy and that my working condition was safe

We just closed last Friday and are living in our new home now. I’m sure you’ll be fine if you are not availing of any subsidies

greengrass88

Had anyone on the subsidy tried to drawdown with aib? They are the only bank I've heard to be considering applicants on the ewss, so thinking about approaching them in the new year

Gemma_22

TaDa wrote: »

You had to provide a letter just to get the loan offer? I had only heard of a letter being needed at Draw down.

Yes. That was a few weeks ago and we are still waiting to hear back. My employer is on the scheme but my partners is not so we are hoping that might help.

myke247

We have been refused twice by one bank and still in process with another .. We are FTB with full HTB and great savings - not looking for huge loan amount and we have been refused for our sectors we work in... One of us on ewss and full wage and the other not. Asked if one in Ewss moved to another sector job and not on Ewss... Told check back in 6 months... Its pretty bleak out there just now... 🙄

brisan

myke247 wrote: »

We have been refused twice by one bank and still in process with another .. We are FTB with full HTB and great savings - not looking for huge loan amount and we have been refused for our sectors we work in... One of us on ewss and full wage and the other not. Asked if one in Ewss moved to another sector job and not on Ewss... Told check back in 6 months... Its pretty bleak out there just now... ��

Article in the Sunday Indo where a trader upper was refused a mortgage because he worked in Aviation
Neither he nor his employer had availed of subsidies
Applicant had a mortgage for 6 years with an impeccable repayment record
Simply told that because of the sector he worked in was considered risky he would not get a mortgage
The reported said eventually he could see the same rules being applied to other sectors
Tourism ,hospitality etc

Sonny LoSpecchio

My partner and I have our deposit sorted, our side pot filling up nicely my parter works on a fixed term contract witch wasn't a problem at first when we spoke to our broker, I work in construction and have been back in work since May, My partner not long after me she's in childcare, We've brezzed through everything until now, her company is claiming the wage subsidy and our broker is now saying the banks won't deal with us till she either leaves the job or the subsidy comes to an end, Really stuck between a rock and a hard place, we can go mortgage approved but can't draw down! Very frustrating, Anybody in similar situation?

greengrass88

Sonny LoSpecchio wrote: »

My partner and I have our deposit sorted, our side pot filling up nicely my parter works on a fixed term contract witch wasn't a problem at first when we spoke to our broker, I work in construction and have been back in work since May, My partner not long after me she's in childcare, We've brezzed through everything until now, her company is claiming the wage subsidy and our broker is now saying the banks won't deal with us till she either leaves the job or the subsidy comes to an end, Really stuck between a rock and a hard place, we can go mortgage approved but can't draw down! Very frustrating, Anybody in similar situation?

Seems to be happening a lot of people, anyone on subsidy will not get drawdown. Subsidy is being extended until end 2021 which makes matters worse unless the banks change their policies I dont see much changing

klose

greengrass88 wrote: »

Seems to be happening a lot of people, anyone on subsidy will not get drawdown. Subsidy is being extended until end 2021 which makes matters worse unless the banks change their policies I dont see much changing

Surely banks will take into consideration the areas of work people are in when on the ewss? I don't think they'd look to fondly on a bespoke business with a couple employees shut down because of restrictions compared to the likes of penneys? Ones likely to have issues in the future compared to others being safe when all this blows over?

greengrass88

klose wrote: »

Surely banks will take into consideration the areas of work people are in when on the ewss? I don't think they'd look to fondly on a bespoke business with a couple employees shut down because of restrictions compared to the likes of penneys? Ones likely to have issues in the future compared to others being safe when all this blows over?

It doesnt seem to make a difference...once on the ewss it seems to be a no from all the banks (at least in my experience). I am in a secure job, employer has seen downturn due to covid yes, but the company will bounce back. My partner is a civil servant....this doesnt make a difference to the banks unfortunately.

TaDa

greengrass88 wrote: »

It doesnt seem to make a difference...once on the ewss it seems to be a no from all the banks (at least in my experience). I am in a secure job, employer has seen downturn due to covid yes, but the company will bounce back. My partner is a civil servant....this doesnt make a difference to the banks unfortunately.

So you were given a resounding no?

You receive the subsidy but your partner does not? I’d have thought that might stand to you if at least one is not in receipt while the person in receipt is in a sector that is hit but not to the same extent as some other sectors.

I get the whole picture to why they are being cautious but this is potentially going to last another 6-12 months. Should I just leave my job in a well established company that receives EWSS as they have had a couple of recent good years in the hope I join a company that is not in receipt?

brisan

greengrass88 wrote: »

It doesnt seem to make a difference...once on the ewss it seems to be a no from all the banks (at least in my experience). I am in a secure job, employer has seen downturn due to covid yes, but the company will bounce back. My partner is a civil servant....this doesnt make a difference to the banks unfortunately.

With a lot of banks its a case of

https://youtu.be/mWBFDhNFhJw

FinglasFollain

Sonny LoSpecchio wrote: »

My partner and I have our deposit sorted, our side pot filling up nicely my parter works on a fixed term contract witch wasn't a problem at first when we spoke to our broker, I work in construction and have been back in work since May, My partner not long after me she's in childcare, We've brezzed through everything until now, her company is claiming the wage subsidy and our broker is now saying the banks won't deal with us till she either leaves the job or the subsidy comes to an end, Really stuck between a rock and a hard place, we can go mortgage approved but can't draw down! Very frustrating, Anybody in similar situation?

In the same situation with regards to childcare. Banks don’t even seem to care about the fact all childcare providers access the subsidy whether they have had turnover issues or not. Essentially their funding has changed from the department of children to the department of social protection. It’s ridiculous.

Banks are speaking out of both sides of their mouth saying they will assess on a case by case basis but then refusing to assess on a case by case basis.

And with the subsidy extended, there’s a huge tranche of people basically locked out of any form of mortgage for 18 months unless they quit their job. Unreal really.

(Edit: from the 1st time buyers FB page, I believe the Indo are looking for participants to do a piece out of people locked out of mortgages due to the subsidy. With that and some TDs questioning it, it might gain some traction and at least make the banks do some work and assess people on their actual case, not a blanket, lazy response of No in all circumstances).

FinglasFollain

TaDa wrote: »

So you were given a resounding no?

You receive the subsidy but your partner does not? I’d have thought that might stand to you if at least one is not in receipt while the person in receipt is in a sector that is hit but not to the same extent as some other sectors.

I get the whole picture to why they are being cautious but this is potentially going to last another 6-12 months. Should I just leave my job in a well established company that receives EWSS as they have had a couple of recent good years in the hope I join a company that is not in receipt?

You can approach banks with one person not on the subsidy who earns 80% of a couples income and still not be approved based on the person who earns 20% being on the subsidy. It’s madness. Where’s the risk in that? No more risk than throwing out 4.5% exemptions in my book.

spiralout

greengrass88 wrote: »

Seems to be happening a lot of people, anyone on subsidy will not get drawdown. Subsidy is being extended until end 2021 which makes matters worse unless the banks change their policies I dont see much changing

Has the subsidy been officially extended? I thought it was to end in march?

TaDa

spiralout wrote: »

Has the subsidy been officially extended? I thought it was to end in march?

End of March and then 3 months off which is what some people have been quoted. If this is the case at least 6 months to drawdown

But to answer your question, not extended from what I have read. When I said 6-12 I assumed the worst, which is wrong of me

greengrass88

TaDa wrote: »

End of March and then 3 months off which is what some people have been quoted. If this is the case at least 6 months to drawdown

But to answer your question, not extended from what I have read. When I said 6-12 I assumed the worst, which is wrong of me

In the budget they said the subsidy would be extended to end of 2021

C575

greengrass88 wrote: »

In the budget they said the subsidy would be extended to end of 2021

"The Employment Wage Subsidy Scheme is currently set to continue until March 31, 2021, however, a similar type scheme will be needed out to the end of 2021 to provide businesses with greater levels of certainty, in the most uncertain of times." The minister said there will be "no cliff edge" to this vital scheme.

spiralout

TaDa wrote: »

End of March and then 3 months off which is what some people have been quoted. If this is the case at least 6 months to drawdown

But to answer your question, not extended from what I have read. When I said 6-12 I assumed the worst, which is wrong of me

Thanks. I thought I heard it was to be extended too but all the information I can find says it will end in march.

greengrass88

spiralout wrote: »

Thanks. I thought I heard it was to be extended too but all the information I can find says it will end in march.

Article on what may happen post March 2021
https://amp.rte.ie/amp/1171270/

FinglasFollain

Banks constantly changing their minds on this.

We were told in October AIB would consider progression to draw down on a case by case basis. We feel we’ve a very strong case (childcare and the fact 80% of our income is unsubsidised).

Now they’ve decided to change the rules and are telling us drawdown won’t be considered until the subsidy is gone. Which given the government noises about extending it, doesn’t sound good. Looks like we’ll be locked out of home buying for at least another year, to add to the previous 6 months.

It’s so disheartening.

brisan

FinglasFollain wrote: »

Banks constantly changing their minds on this.

We were told in October AIB would consider progression to draw down on a case by case basis. We feel we’ve a very strong case (childcare and the fact 80% of our income is unsubsidised).

Now they’ve decided to change the rules and are telling us drawdown won’t be considered until the subsidy is gone. Which given the government noises about extending it, doesn’t sound good. Looks like we’ll be locked out of home buying for at least another year, to add to the previous 6 months.

It’s so disheartening.

While I agree it’s disheartening and in your case possibly unfair it’s just the bank being ultra cautious
There was a case in the Sunday indo a couple of weeks ago where a mortgage was refused based purely on the sector ( aviation ) the applicant worked in
He was not on a subsidy
It was a mover mortgage and he already had a mortgage with the bank for six years with an impeccable repayment record
They still refused based solely on where he worked

FinglasFollain

brisan wrote: »

While I agree it’s disheartening and in your case possibly unfair it’s just the bank being ultra cautious
There was a case in the Sunday indo a couple of weeks ago where a mortgage was refused based purely on the sector ( aviation ) the applicant worked in
He was not on a subsidy
It was a mover mortgage and he already had a mortgage with the bank for six years with an impeccable repayment record
They still refused based solely on where he worked

Whilst I agree with banks being cautious, surely the need for a blanket ban is outrageous.

We have proved we can comfortably repay the mortgage with just one wage, more than the accepted 1.3 times stress test. We have letters to prove the company don’t need the subsidy but they’re taking it anyway. We’re looking for a 60% mortgage. Small risk compared to a 90% mortgage with a 4.5 times exemption but seems they can be thrown out.

And then there’s the childcare thing. They’ve been classed as an essential service in governments eyes. They won’t be closing, laying staff off etc. They are getting the subsidy purely as a stimulus. But again, banks don’t care. Blanket no.

greengrass88

FinglasFollain wrote: »

Whilst I agree with banks being cautious, surely the need for a blanket ban is outrageous.

We have proved we can comfortably repay the mortgage with just one wage, more than the accepted 1.3 times stress test. We have letters to prove the company don’t need the subsidy but they’re taking it anyway. We’re looking for a 60% mortgage. Small risk compared to a 90% mortgage with a 4.5 times exemption but seems they can be thrown out.

And then there’s the childcare thing. They’ve been classed as an essential service in governments eyes. They won’t be closing, laying staff off etc. They are getting the subsidy purely as a stimulus. But again, banks don’t care. Blanket no.

It's so rubbish isnt it in your case especially. Have you approached any brokers or more than one bank?

FinglasFollain

greengrass88 wrote: »

It's so rubbish isnt it in your case especially. Have you approached any brokers or more than one bank?

Whatever about banks potentially considering, brokers hear the word subsidy and say goodbye. They’ve been of absolute no help, none have said they could proceed. We’re approaching all the banks basically in the hope they will assess on a case by case basis.

C575

FinglasFollain wrote: »

Whatever about banks potentially considering, brokers hear the word subsidy and say goodbye. They’ve been of absolute no help, none have said they could proceed. We’re approaching all the banks basically in the hope they will assess on a case by case basis.

Try ICS. We went with them and fine for AIP with wage subsidy. They said they'd proceed to loan offer if you have a letter to confirm once the wage subsidy ends, you're pay will not be impacted. Will let you draw down once you have a payslip to show you're not on it, but considering the EWSS doesn't show - I assume they will ask for a letter to confirm this.

We went through LFS (broker) in dunboyne and no issues with wage subsidy.

brisan

C575 wrote: »

Try ICS. We went with them and fine for AIP with wage subsidy. They said they'd proceed to loan offer if you have a letter to confirm once the wage subsidy ends, you're pay will not be impacted. Will let you draw down once you have a payslip to show you're not on it, but considering the EWSS doesn't show - I assume they will ask for a letter to confirm this.

We went through LFS (broker) in dunboyne and no issues with wage subsidy.

And if the letter says your employer is in receipt of EWSS

greengrass88

C575 wrote: »

"Case by Case" like everyone else.
They're potentially making a change to the EWSS for Jan. To get the EWSS, company needs to be down 30% Jan-Jun 2021 compared to Jan-Jun 2019. That may mean some will come off.

What exactly is the criteria for it at the moment? Do they need to be down 30% for 2020 to be on it now?

C575

greengrass88 wrote: »

What exactly is the criteria for it at the moment? Do they need to be down 30% for 2020 to be on it now?

At the moment it's 2020 figures compared to 2019. But considering most things were closed throughout 2020 or on restrictions, you'd expect most to be 30% down. With the majority of things opened back up now and hopefully into early next year, it may be a case where some employers can't avail of the EWSS.