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Child Item

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

gmannix1000

Hi All,

Employer has notified they have gotten the COVID-19 wage subsidy scheme last month.

My wages haven't changed but was hoping to apply for a mortgage in the next 3 months and was wondering if this would affect my mortgage application/amount in any way?... if anyone knows?

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Janey100

GalwayyGirl wrote: »

Has anyone had any success in drawing down while one or both applicants are in receipt of the subsidy?

We have wasted countless weeks now applying to additional banks that initially said there will be no issue with drawdown as they are dealing with subsidy receipients on a "case-by-case basis". All of the banks which have come back to us are requiring proof of non-receipt of the subsidy prior to drawdown (despite what they previously stated).

Only one of us are in receipt of the subsidy payment (no threat to job security). We are have strong incomes, good savings and no debt. Despite this, we don't satisfy whatever critera they are using to assess our application on a 'case-by-case' basis.

Any help would really be appreciated. Thank you.

No but our broker has told us he has had some successes in order to get us to continue the process when we didnt know if we should bother and get our Hope's up, but whether this is true or not I will find out in 3 weeks when we look to drawdown ðŸ€·*♀️

Have you contracts signed? Are you in hospitality as he thinks this is the "case by case" bases

GalwayyGirl

Janey100 wrote: »

No but our broker has told us he has had some successes in order to get us to continue the process when we didnt know if we should bother and get our Hope's up, but whether this is true or not I will find out in 3 weeks when we look to drawdown ðŸ€·*♀️

Have you contracts signed? Are you in hospitality as he thinks this is the "case by case" bases

We are sale agreed but haven't signed contracts yet. I work in the legal sector.

[Deleted User]

brisan wrote: »

How people can still believe this is beyond me

Because it’s fact for many people.

How can people now believe that there are people in receipt of the subsidy that are totally secure and there companies haven’t a chance in hell of going under.

Janey100

GalwayyGirl wrote: »

We are sale agreed but haven't signed contracts yet. I work in the legal sector.

Makes no sense then you should be fine especially that only one of you are on it,why would they tell you to go through the process it will be fine and then not follow through!Waste of your time!

Also if it's not appearing on the next payslip what to stop a company writing a letter and lying that they are off it,what's a piece of typed up words worth!

Janey100

Londyn Hallowed Duet wrote: »

Because it’s fact for many people.

How can people now believe that there are people in receipt of the subsidy that are totally secure and there companies haven’t a chance in hell of going under.

I believe that galway girl has a partner who is not on the scheme ,and also know if they can or cannot afford a mortgage considering anyone can lose a job tommorow covid or no covid and most mortgages are cheaper than rent.

And In my instance I work for a multi billion company who managed to just get our sector on the scheme as it was performing at 65% even though their other sectors where up through covid. I think banks should take the case by case serious .

[Deleted User]

Cushtie wrote: »

If a company is in receipt of the EWSS this payment will not appear on the employees payslip.

Revenue will publish a list of employers on EWSS once the scheme ends.

brisan

Janey100 wrote: »

Makes no sense then you should be fine especially that only one of you are on it,why would they tell you to go through the process it will be fine and then not follow through!Waste of your time!

Also if it's not appearing on the next payslip what to stop a company writing a letter and lying that they are off it,what's a piece of typed up words worth!

You do know obtaining money by deception is a criminal offence ,and any employer giving such a letter would possibly be considered an accomplice ,but I am sure you knew that

michellie

brisan wrote: »

How people can still believe this is beyond me

I'm on the wage subsidy scheme too(coming off it next week) my job is absolutely under no threat.

brisan

michellie wrote: »

I'm on the wage subsidy scheme too(coming off it next week) my job is absolutely under no threat.

Maybe not YOUR particular job,but by applying for TWSS your employer has admitted that his business is suffering a downturn.
They have stated that they cannot afford to pay all their staff full wages.
The bank knows this and will treat all employees of the business the same.
Cemeteries are full of people who though they could not be done without.
At the best of times NO ONES job is safe ,even more so now.

MoonUnit75

brisan wrote: »

Maybe not YOUR particular job,but by applying for TWSS your employer has admitted that his business is suffering a downturn.
They have stated that they cannot afford to pay all their staff full wages.
The bank knows this and will treat all employees of the business the same.
Cemeteries are full of people who though they could not be done without.
At the best of times NO ONES job is safe ,even more so now.

I don't think they are admitting they can't pay wages. Is it not more that turnover is down and there is less work for staff to do ie. the alternative is lay-offs due to staff not being needed. Of course many businesses in retail and hospitality/tourism are in deep trouble, I'm not denying that. But I don't remember anything in the announcements to say businesses with cash reserves or assets they could offload couldn't apply for the scheme.

I think there's a bit of scaremongering going on, some of it seems to suggest staff in viable businesses with temporary interruption to normal working hours and turnover should just take the hit on the scheme and 'thank their lucky stars they have a job'. For many, it's a non-voluntary pay cut. Many of these businesses will be back making profits either in the very near future or in the next few months while employees will be paying back the extra tax for at least a year and maybe two.

I think there are at least a minority of businesses who saw free money being waved in their faces and thought better to have it when the course of this pandemic is uncertain.

michellie

brisan wrote: »

Maybe not YOUR particular job,but by applying for TWSS your employer has admitted that his business is suffering a downturn.
They have stated that they cannot afford to pay all their staff full wages.
The bank knows this and will treat all employees of the business the same.
Cemeteries are full of people who though they could not be done without.
At the best of times NO ONES job is safe ,even more so now.

I work in the NCT brisan, I'm sure we will be ok.

brisan

michellie wrote: »

I work in the NCT brisan, I'm sure we will be ok.

I am sure you will be ,the same way thousands of civil servants were in 08-12 and thousands of bank employees in good secure pensionable jobs are

Kh1993

Not arguing what’s right or wrong etc, but are any banks actually processing applications for drawdown under the subsidy on the ‘case by case basis’ like they said they would, or a full blown no?

I know permanent tsb and Ulster bank have both said in the media that they are, but that in actual practice they are giving 100% no’s to subsidy applicants.

The_Conductor

I'm not aware of any lenders processing any (at all) drawdowns for recipients of pay/salary under the wage subsidy scheme.

sparkle109

Permanent tsb have told us no drawdown until off Covid subsidy at least a month

quote="Kh1993;114480379"]Not arguing what’s right or wrong etc, but are any banks actually processing applications for drawdown under the subsidy on the ‘case by case basis’ like they said they would, or a full blown no?

I know permanent tsb and Ulster bank have both said in the media that they are, but that in actual practice they are giving 100% no’s to subsidy applicants.[/quote]

[Deleted User]

brisan wrote: »

They have stated that they cannot afford to pay all their staff full wages..

Absolute BS. Where are you getting this from? When an employer applied for TWSS, all that was being stated was that income/orders had dropped due to Covid.

Most businesses closed in March, most are down at least 25 to 30% of income. When something like that happens in normal times, like the loss of a big customer, it is prudent for an employer to lay-off unneeded staff. Employers would have done this during Covid, in an effort to keep people in employment and off the live register, the TWSS scheme was quickly introduced.

Availing of it is not a statement you cannot afford to pay wages, it did however keep hundreds of thousands of employees in a job who would otherwise have been laid off as there was no work for them to do .

greengrass88

sparkle109 wrote: »

Permanent tsb have told us no drawdown until off Covid subsidy at least a month

quote="Kh1993;114480379"]Not arguing what’s right or wrong etc, but are any banks actually processing applications for drawdown under the subsidy on the ‘case by case basis’ like they said they would, or a full blown no?

I know permanent tsb and Ulster bank have both said in the media that they are, but that in actual practice they are giving 100% no’s to subsidy applicants.

[/quote]

Yes we were told by all banks there would be no drawdown until 1 payslip off the subsidy. The new EWSS starts today and runs until March 31st...how soon into April 2021 would I be able to drawdown? I get paid fortnightly.

spiralout

The new EWSS won't appear on your payslip. How will banks know if you are on it or not?

greengrass88

spiralout wrote: »

The new EWSS won't appear on your payslip. How will banks know if you are on it or not?

A few people have previously mentioned that banks will ask for letters of confirmation from employers

The_Conductor

spiralout wrote: »

The new EWSS won't appear on your payslip. How will banks know if you are on it or not?

Banks are specifically requesting letters from Personnel Officers stating that you are in permanent employment, at what salary and whether or not this is subvented by any government schemes.

spiralout

I thought they would have some way of finding out. Good to know.
I have approval since March. Have held off doing anything since I was put on the subsidy. Need to reapply this week as the 6 months AIP is up, so I'll see what they say.

The_Conductor

spiralout wrote: »

I thought they would have some way of finding out.

Under GDPR they are not allowed allowed access to the list of companies availing of the scheme, until such time as the scheme is wound up (or the companies opt out of the scheme).

[Deleted User]

The_Conductor wrote: »

Banks are specifically requesting letters from Personnel Officers stating that you are in permanent employment, at what salary and whether or not this is subvented by any government schemes.

Do banks actually follow up on these letters? Sure anyone with access to the headed paper of their company could do up a letter.

awec

Londyn Hallowed Duet wrote: »

Do banks actually follow up on these letters? Sure anyone with access to the headed paper of their company could do up a letter.

That would be fraud.

Not only would your bank take serious issue with this, but your employer would not be impressed either to find you forging letters.

[Deleted User]

awec wrote: »

That would be fraud.

Not only would your bank take serious issue with this, but your employer would not be impressed either to find you forging letters.

It may well be and I’m not condoning it but you can be sure people would still chance it if there is only a very slim chance of being caught and they are driven mad with frustration by the banks acting the bollocks over this.

brisan

The_Conductor wrote: »

I'm not aware of any lenders processing any (at all) drawdowns for recipients of pay/salary under the wage subsidy scheme.

As has been stated they are saying its a case by case basis but in reality they are rejecting all draw downs with a subsidy on the payslip.
To state a blank no outright would be bad press

brisan

Dav010 wrote: »

Absolute BS. Where are you getting this from? When an employer applied for TWSS, all that was being stated was that income/orders had dropped due to Covid.

Most businesses closed in March, most are down at least 25 to 30% of income. When something like that happens in normal times, like the loss of a big customer, it is prudent for an employer to lay-off unneeded staff. Employers would have done this during Covid, in an effort to keep people in employment and off the live register, the TWSS scheme was quickly introduced.

Availing of it is not a statement you cannot afford to pay wages, it did however keep hundreds of thousands of employees in a job who would otherwise have been laid off as there was no work for them to do .

Have you read what you posted
You contradicted yourself and proved my point

brisan

Londyn Hallowed Duet wrote: »

It may well be and I’m not condoning it but you can be sure people would still chance it if there is only a very slim chance of being caught and they are driven mad with frustration by the banks acting the bollocks over this.

So you consider a bank acting the bollocks by refusing to lend money to people who may not be in a position to pay it back
Fair enough

[Deleted User]

brisan wrote: »

So you consider a bank acting the bollocks by refusing to lend money to people who may not be in a position to pay it back
Fair enough

As I have said plenty of people on the scheme are 100% safe in their jobs and know it and/or they are in a joint mortgage application where the second salary (not in the scheme) could easily meet the repayment but obviously this would not meet the 3.5 rule.

Kh1993

My issue has never been with banks giving bad loans to people who are in precarious positions.

My issue with the scheme is in relation to it being applied to a whole sector. In this instance it’s childcare. Childcare providers and facilities can access this scheme without any loss of revenue or any hardship. The revenue states this. So your job could be safe, your business raking it in. Yet you’re on the subsidy because why would your company turn it down? It’s essentially a stimulus.

But banks won’t actually look at things on a case by case basis. Frustrating. Basically locked out of a loan or mortgage because your sector availed of free money.