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

brisan

Sonrisa wrote: »

Well that put me back in my box. Such good insight. Really helpful for anyone applying for a mortgage. You should set up as a mortgage broker. In fact I'm surprised the banks haven't hired you to do their comms.

helpful advice for people applying for a mortgage is to realize, whether its fair or not, is that if one of the applicant for the mortgage is in receipt of PUP or EWSS the likelihood of them being allowed draw down their mortgage is slim.
it would do those looking to obtain a mortgage to take note of this fact

Wildly Boaring

Kh1993 wrote: »

Let’s be clear, no childcare job is under threat anytime soon.

Our childcare provider has let off her staff (only 2 but still)
She is closing shop

No interest in taking in children with covid in the country.
She has elderly parents and I think a child with asthma or in another risk group.

2 couples on our road not sending the kids back to childcare, maybe ever? Work from home and part-time is their future and above to manage once kids back to school. So less demand for childcare from these types.

This thread is just one of those ones where the 2 sides will never meet. I'm one of those who thinks the banks are right.

We bailed them out last time and would be unhappy if they were loaning to those at risk of reduncancy when the government coffers inevitably run dry on these types of payments.

There's a lot of pain to come from covid yet economically. Especially if our government continues the draconian responses to it. The banks have to insulate themselves. Elements may not recover.

Kh1993

Wildly Boaring wrote: »

This thread is just one of those ones where the 2 sides will never meet. I'm one of those who thinks the banks are right.

That’s fair. FWIW, I don’t massively disagree with you. My only gripe is that a whole sector has been given access to this subsidy, whether they need it or not.

And then there’s people caught in the middle, working in a facility that hasn’t lost money/funding/children. Of course their company will take the subsidy, they’d be mad not to. But them people in the middle are caught in the crossfire. Banks won’t entertain them. There’s no examination of individual cases where the subsidy is involved.

spiralout

I can see both sides of the argument.
Personally, my broker told me to proceed with trying to buy even though I am on the subsidy. I have held of for the renewal of the approval to see what the bank will say before going any further. My mortgage would not be any more than what we have been paying in rent for the last 7 years. We're not in big paying jobs. We would be able to pay the mortgage even if one of us was unemployed. It's frustrating, but that's the way it is.

greengrass88

spiralout wrote: »

I can see both sides of the argument.
Personally, my broker told me to proceed with trying to buy even though I am on the subsidy. I have held of for the renewal of the approval to see what the bank will say before going any further. My mortgage would not be any more than what we have been paying in rent for the last 7 years. We're not in big paying jobs. We would be able to pay the mortgage even if one of us was unemployed. It's frustrating, but that's the way it is.

Interesting that your broker told you to proceed, I've been told the opposite by two brokers. Fingers crossed for you

calfmuscle

hi all im a sole trader and had to close for 9 weeks. Back working since May and the business is as busy as ever. I received the covid payment for those 9 weeks tho. Does anyone know if this will go against me going for a mortgage?

Dec2020

On the EWSS and mortgage draw down, people have mentioned that banks will now look for a letter from the employer confirming that the business is not availing of the scheme. Does anyone know exactly what this letter needs to state?

flipflophead22

That the employer intends to take you back and at original salary.

The_Conductor

calfmuscle wrote: »

hi all im a sole trader and had to close for 9 weeks. Back working since May and the business is as busy as ever. I received the covid payment for those 9 weeks tho. Does anyone know if this will go against me going for a mortgage?

3 months free of covid payments and you're in good standing.

scut_07

The_Conductor wrote: »

3 months free of covid payments and you're in good standing.

One payslip free of a covid payment and you are good. That's all our bank was looking from us.

The_Conductor

Fair enough- BOI want 3 clear months- other lenders may be different

scut_07

Dec2020 wrote: »

On the EWSS and mortgage draw down, people have mentioned that banks will now look for a letter from the employer confirming that the business is not availing of the scheme. Does anyone know exactly what this letter needs to state?

Our mortgage broker was in contact with KBC today and asked this very question. Kbc stated that as long as your payslip was free of any covid payment that you were ok. They didn't care about any outside influence from the government schemes after that. EWSS does not show on your payslip, so you should be fine. With KBC anyway at least. They may change their position on this, but for now that is their standing, I believe.

Dec2020

So BOI won't allow you to drawdown unless you have 3 payslips with no covid payment on them? I'm due to drawdown next month and will only have 2 clean payslips at this stage.

The_Conductor

Dec2020 wrote: »

So BOI won't allow you to drawdown unless you have 3 payslips with no covid payment on them? I'm due to drawdown next month and will only have 2 clean payslips at this stage.

Ring them and clarify the position locally.

Dec2020

Will do, actually i think I misread this, I was referring to TWSS, I think the original discussion was about the PUP.

Dubs1990

Permanent tsb are the same , one payslip , and the payslip has to be free of covid payment. Was talking to a mortgage advisor today and they have herd of no other policy regarding the EWSS.

C575

Does anyone know if ICS are allowing drawdown while employer is registered with EWSS? Or the terms.

calfmuscle

Thanks all that's really helpful, im self employed so no payslips but back trading over 3 months. Will be contacting a broker soon. You've reassures me, so thank you

greengrass88

scut_07 wrote: »

Our mortgage broker was in contact with KBC today and asked this very question. Kbc stated that as long as your payslip was free of any covid payment that you were ok. They didn't care about any outside influence from the government schemes after that. EWSS does not show on your payslip, so you should be fine. With KBC anyway at least. They may change their position on this, but for now that is their standing, I believe.

Will they allow drawdown with someone on the payment though, and not just AIP? They may ask for a letter from employers to confirm if they are/are not on the scheme, that's what ive heard is happening anyway.

spiralout

Spoke to our mortgage advisor yesterday about renewing our AIP. I am on the EWSS. He said there is not point applying for AIP again because he is 100% sure we will qualify and it is the same work required to get approval again as it is to apply for drawdown. He said to keep looking and find a house and he will stand over any bid we make.

Dubs1990

spiralout wrote: »

Spoke to our mortgage advisor yesterday about renewing our AIP. I am on the EWSS. He said there is not point applying for AIP again because he is 100% sure we will qualify and it is the same work required to get approval again as it is to apply for drawdown. He said to keep looking and find a house and he will stand over any bid we make.

Apologies if I'm been an arss here , don't understand your message.

He thinks you will be able to draw down on EWSS or he thinks your wasting your time?.

spiralout

Dubs1990 wrote: »

Apologies if I'm been an arss here , don't understand your message.

He thinks you will be able to draw down on EWSS or he thinks your wasting your time?.

Sorry I should have been more clear. He is 100% sure we will be able to draw down.

brisan

spiralout wrote: »

Sorry I should have been more clear. He is 100% sure we will be able to draw down.

I am very surprised at that given some of the posts on here
I know for a fact of Bank AIB and one building society EBS who will not allow it

The_Conductor

brisan wrote: »

I am very surprised at that given some of the posts on here
I know for a fact of Bank AIB and one building society EBS who will not allow it

BOI don't either.
What the broker said is bizarre- unless there are more details that the poster isn't disclosing.

spiralout

The_Conductor wrote: »

BOI don't either.
What the broker said is bizarre- unless there are more details that the poster isn't disclosing.

I thought the same, held off making any bids on houses because of the stories on here. Was going to reapply to see if we would get approval this time but the broker believes it is not an issue anymore because it is no longer on the payslip. He said the subsidy created any issue that it should never have caused. I'm still a little weary because of all the stories on here but he was absolutely confident we will have no problems drawing down.

greengrass88

The_Conductor wrote: »

BOI don't either.
What the broker said is bizarre- unless there are more details that the poster isn't disclosing.

Same with kbc...they said they would get employers to sign a declaration re subsidies

Dec2020

What does the declaration need to consist of? A letter from employer to say that they are no longer availing of any subsidy scheme?

Dubs1990

I just went sale agreed on a property today , my wife is on the EWSS , not dealing with a broker directly but my solicitor put me in touch with a person he knows to answer some questions.

He's positive we will get to drawdown as our wages have not been affected ( in matter of fact my wife's wages are gone up ).

He said they are going to ask for letters of my wife's jobs accountant to state how the business will be looking in the next 12 months along with salary certs etc.

I will keep it posted as to how we get on here as I know alot of people are in the same boat.

EJC4711

Just to note, that while your wife’s wages may have gone up while she was on TWSS/EWSS, she will have a tax liability and her tax credits will be reduced next year.

brisan

Dubs1990 wrote: »

I just went sale agreed on a property today , my wife is on the EWSS , not dealing with a broker directly but my solicitor put me in touch with a person he knows to answer some questions.

He's positive we will get to drawdown as our wages have not been affected ( in matter of fact my wife's wages are gone up ).

He said they are going to ask for letters of my wife's jobs accountant to state how the business will be looking in the next 12 months along with salary certs etc.

I will keep it posted as to how we get on here as I know alot of people are in the same boat.

Which lender are you with ??