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

Aurelian

I've been through a lot of horse trading with banks on this lately, it seems if your company is on the subsidy it is extremely hard to get a drawdown. Supposedly BOI have added a section to the salary cert form to say whether or not they are receiving supports.

I think this will only change if the banks start to need to do business with people and look on a detailed case by case basis.

greengrass88

Aurelian wrote: »

I've been through a lot of horse trading with banks on this lately, it seems if your company is on the subsidy it is extremely hard to get a drawdown. Supposedly BOI have added a section to the salary cert form to say whether or not they are receiving supports.

I think this will only change if the banks start to need to do business with people and look on a detailed case by case basis.

I guess until we know more about the supposed new subsidy and what form it will take it's all guess work.

Gemma_22

Hi,

Has anyone had any joy drawing down a mortgage while your employer is in receipt of the EWSS?

PTSB are requesting a letter from the employer stating they are not in receipt of it, but they are. Hoping a letter stating my employment is secure etc will be enough to get by. My partners job has not been effected and I am still working full time with no loss of salary. I assumed having a covid free payslip would be enough but no.

Graham

Mod Note

Threads Merged

Dolbhad

Gemma_22 wrote: »

Hi,

Has anyone had any joy drawing down a mortgage while your employer is in receipt of the EWSS?

PTSB are requesting a letter from the employer stating they are not in receipt of it, but they are. Hoping a letter stating my employment is secure etc will be enough to get by. My partners job has not been effected and I am still working full time with no loss of salary. I assumed having a covid free payslip would be enough but no.

The banks are aware that under the EWSS it doesn’t show up on payslips. My understanding was the government arranged it this way to get around the issues during lockdown 1.0 where banks wouldn’t let people drawdown on the wage subsidy scheme.

Banks have gotten around this buy asking employers for a letter. I expect, like earlier in the year, the banks may not let you drawdown unless your off the payment.

ianm1990

Gemma_22 wrote: »

Hi,

Has anyone had any joy drawing down a mortgage while your employer is in receipt of the EWSS?

PTSB are requesting a letter from the employer stating they are not in receipt of it, but they are. Hoping a letter stating my employment is secure etc will be enough to get by. My partners job has not been effected and I am still working full time with no loss of salary. I assumed having a covid free payslip would be enough but no.

This is just to give you an update where I am at with permanent tsb , I am at loan offer stage , contracts signed every document up to underwritters to draw down on Wednesday.

So regarding the EWSS my partner is on it aswell her manager stated on a letter even though they are receiving the EWSS its not directly going to my wife's wages ( there in the childcare sector) , we gave all those letters documents payslips etc up nearly 3 weeks ago ,

10 days ago we received our loan offer to go to drawdown. All our letters payslips passed at that stage

We then received a call on Thursday from our mortgage advisor that they have changed a policy that anybody who is now going from AIP to loan offer simple will be told no if they can not produce a letter from there employer that the COMPANY is not in receipt of covid , not just the person applying.

She is telling us this as worst case scenario incase they change the policy regarding people all ready holding loan approval. She also said that as we are both still working during this lock down , it's still looking good.

Gemma_22

ianm1990 wrote: »

This is just to give you an update where I am at with permanent tsb , I am at loan offer stage , contracts signed every document up to underwritters to draw down on Wednesday.

So regarding the EWSS my partner is on it aswell her manager stated on a letter even though they are receiving the EWSS its not directly going to my wife's wages ( there in the childcare sector) , we gave all those letters documents payslips etc up nearly 3 weeks ago ,

10 days ago we received our loan offer to go to drawdown. All our letters payslips passed at that stage

We then received a call on Thursday from our mortgage advisor that they have changed a policy that anybody who is now going from AIP to loan offer simple will be told no if they can not produce a letter from there employer that the COMPANY is not in receipt of covid , not just the person applying.

She is telling us this as worst case scenario incase they change the policy regarding people all ready holding loan approval. She also said that as we are both still working during this lock down , it's still looking good.

Oh ok, the stage we are at is trying to get loan offer. So that looks like my letter saying I'm secure wont even work. We are both working full time too. Very frustrating

ianm1990

Gemma_22 wrote: »

Oh ok, the stage we are at is trying to get loan offer. So that looks like my letter saying I'm secure wont even work. We are both working full time too. Very frustrating

Now try it , please take what you read on this with a pinch of salt , for all I know my mortgage advisor got it wrong . Even with what I was told we are up the wall with worry as we are so invested into the property.

Gemma_22

ianm1990 wrote: »

Now try it , please take what you read on this with a pinch of salt , for all I know my mortgage advisor got it wrong . Even with what I was told we are up the wall with worry as we are so invested into the property.

Yes we are trying to be positive but its so hard with all the set backs haha we have come so far at this stage its horrible to think it would all be wasted and like yourself really invested in this property. Fingers crossed it will work out

greengrass88

Gemma_22 wrote: »

Yes we are trying to be positive but its so hard with all the set backs haha we have come so far at this stage its horrible to think it would all be wasted and like yourself really invested in this property. Fingers crossed it will work out

I've been looking into this issue a lot but still seems to be bad news for most people on EWSS. I could of put up with waiting until april 2021 to buy a house - the ewss was due to end april 2021 - but then they announced in the budget that the subsidies would continue until end 2021. Totally devastated at this thought!

Someone in this thread mentioned they had some luck with AIB - aib told me no due to me being on subsidy, but maybe read back through the thread and give aib a go...might work out for you!

Gemma_22

greengrass88 wrote: »

I've been looking into this issue a lot but still seems to be bad news for most people on EWSS. I could of put up with waiting until april 2021 to buy a house - the ewss was due to end april 2021 - but then they announced in the budget that the subsidies would continue until end 2021. Totally devastated at this thought!

Someone in this thread mentioned they had some luck with AIB - aib told me no due to me being on subsidy, but maybe read back through the thread and give aib a go...might work out for you!

I just think its very unfair to the employee. My job is not at risk at all so hoping for case by case. We might try a few other banks too and see what the story is.

Gemma_22

Dubs1990 wrote: »

It looks that way , I should know by the end off the week if I get to loan offer. I will keep it updated here.

Any update on this im currently in the same situation

Kh1993

Are banks taking into the account the childcare sector element? All childcare and early educational facilities are blanket receiving the subsidy as a stimulus. They’d be mad not to accept it. It’s literally free money. Taking it certainly doesn’t show that the company is in bad financial health

AIB up til last week we’re taking cases on a case by case basis and weren’t giving a blanket no to anyone on EWSS. Hopefully that doesn’t change like PTSB.

ianm1990

Kh1993 wrote: »

Are banks taking into the account the childcare sector element? All childcare and early educational facilities are blanket receiving the subsidy as a stimulus. They’d be mad not to accept it. It’s literally free money. Taking it certainly doesn’t show that the company is in bad financial health

AIB up til last week we’re taking cases on a case by case basis and weren’t giving a blanket no to anyone on EWSS. Hopefully that doesn’t change like PTSB.

PTSB have changed there policy since last week , to go from AIP to loan offer you must provide a letter from your employer stating they are not receiving any covid subsidy , childcare sector or not I was told.

greengrass88

I wonder will anyone have luck with AIB

ianm1990

Just giving an update here , wife on EWSS with permanent tsb , got letter of employer stating that my wife is not receiving EWSS but that the company is.

As of 2 days ago , that part of the drawdown section was passed no problem , didn't ask for up to date payslips or anything either. We had given an up to date letter from my wife's job stating her wage is unchanged etc.

I'm not saying I have the money in the solicitors bank yet , but all that's left to sign off on is the mortgage protection , and there hopefull funds will be released today or Monday!

Anybody going for mortgage application, just go for it , so many people here will tell you absolute nonsense, but some just say it how it is.

Very stressful journey , but there is light at the end of the tunnel!

Gemma_22

ianm1990 wrote: »

Just giving an update here , wife on EWSS with permanent tsb , got letter of employer stating that my wife is not receiving EWSS but that the company is.

As of 2 days ago , that part of the drawdown section was passed no problem , didn't ask for up to date payslips or anything either. We had given an up to date letter from my wife's job stating her wage is unchanged etc.

I'm not saying I have the money in the solicitors bank yet , but all that's left to sign off on is the mortgage protection , and there hopefull funds will be released today or Monday!

Anybody going for mortgage application, just go for it , so many people here will tell you absolute nonsense, but some just say it how it is.

Very stressful journey , but there is light at the end of the tunnel!

It's so refreshing to hear some positive news on this topic!! Great news for you and your wife I hope the rest of the process runs smoothly! I've had a lot of sleepless nights and currently waiting on loan offer from ptsb. My letter from my employer is in and its such a nervous time.

ianm1990

Gemma_22 wrote: »

It's so refreshing to hear some positive news on this topic!! Great news for you and your wife I hope the rest of the process runs smoothly! I've had a lot of sleepless nights and currently waiting on loan offer from ptsb. My letter from my employer is in and its such a nervous time.

Money got released yesterday for us , fingers crossed for yous !

greengrass88

Gemma_22 wrote: »

It's so refreshing to hear some positive news on this topic!! Great news for you and your wife I hope the rest of the process runs smoothly! I've had a lot of sleepless nights and currently waiting on loan offer from ptsb. My letter from my employer is in and its such a nervous time.

Did you have any luck with this Gemma_22? Still a resounding "no" from banks for us as far as I can make out. Dont really want to go through the hassle of getting everything in order for the mortgage and finding a house we love only to be told we cant drawdown.

ianm1990

greengrass88 wrote: »

Did you have any luck with this Gemma_22? Still a resounding "no" from banks for us as far as I can make out. Dont really want to go through the hassle of getting everything in order for the mortgage and finding a house we love only to be told we cant drawdown.

Just on this , I luckily got mortgage , but looks like just in time as my paperwork was to far ahead to have it pulled.

I was talking to the broker in permanent tsb yday , and she said they have got so much stricter regarding the EWSS and are now calling the HR in the jobs to make sure the company are not receiving the scheme.

I was able to drawdown on the bases that the company were receiving it but it wasn't actually been used for my wife's wage.

She said absolutely no chance that would of gotten through now !.

brisan

Its seemingly now not just PUP and EWSS
Letter in the Independent on Sunday where the writer was refused a mortgage because he worked in the Aviation industry
Not a FTB
he already had a mortgage with the bank for 6 yrs and had never missed a payment ,but they still refused him because of where he worked
He was not on EWSS

cubatahavana

ianm1990 wrote: »

Just on this , I luckily got mortgage , but looks like just in time as my paperwork was to far ahead to have it pulled.

I was talking to the broker in permanent tsb yday , and she said they have got so much stricter regarding the EWSS and are now calling the HR in the jobs to make sure the company are not receiving the scheme.

I was able to drawdown on the bases that the company were receiving it but it wasn't actually been used for my wife's wage.

She said absolutely no chance that would of gotten through now !.

Is this is for the applications for loan offer? once loan offer has been granted, as long as it is not listed as part of the conditions, I suppose people are ok and the banks will leave them alone?

TaDa

cubatahavana wrote: »

Is this is for the applications for loan offer? once loan offer has been granted, as long as it is not listed as part of the conditions, I suppose people are ok and the banks will leave them alone?

I’ve heard that loan approval is being given out by banks. They are only ringing/asking for letters from employers if it comes to drawdown. I could be wrong but that’s what I have heard.

Also there have been cases I have heard of that have gone the whole way and been able to drawdown despite being on a wage subsidy.

So really it’s all very grey. Some are getting through the whole process whilst on a subsidy scheme while others are only getting to the approval stage

greengrass88

brisan wrote: »

Its seemingly now not just PUP and EWSS
Letter in the Independent on Sunday where the writer was refused a mortgage because he worked in the Aviation industry
Not a FTB
he already had a mortgage with the bank for 6 yrs and had never missed a payment ,but they still refused him because of where he worked
He was not on EWSS

Yes I read that article...after reading it I can honestly say I would not approach EBS for a mortgage.

Dec2020

BOI update - I drew down last week, BOI require most recent payslips, bank statements and letter from each employer confirming they are not getting EWSS.

Gemma_22

greengrass88 wrote: »

Did you have any luck with this Gemma_22? Still a resounding "no" from banks for us as far as I can make out. Dont really want to go through the hassle of getting everything in order for the mortgage and finding a house we love only to be told we cant drawdown.

Hi

We are still waiting on loan offer. They keep coming back looking for more and more stuff (not covid related) so there has been delays. I'm really hoping we slip through!! Such a long nervous wait

Gemma_22

Dec2020 wrote: »

BOI update - I drew down last week, BOI require most recent payslips, bank statements and letter from each employer confirming they are not getting EWSS.

Congrats!! Had you given any employer letters before the drawdown one? I have given these letters in for loan offer so I'm wondering am i going to need a new one for drawdown.

Dec2020

Hi Gemma, no we weren't asked for employer letters before loan offer (we had to get our loan offer renewed in early September) It was just before draw down.

TaDa

Gemma_22 wrote: »

Congrats!! Had you given any employer letters before the drawdown one? I have given these letters in for loan offer so I'm wondering am i going to need a new one for drawdown.

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

cubatahavana

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