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Temporary reduction of salary

SimonBck
SimonBck Posts: 138 Forumite
100 Posts First Anniversary Name Dropper
in Mortgages & endowments
I have had a mortgage offer from HSBC that expires in September. I have to take a 20% pay cut temporarily. Will HSBC pull the offer because of this temporary reduction?

Comments

  • csgohan4
    csgohan4 Posts: 10,600 Forumite
    Ninth Anniversary 10,000 Posts Name Dropper Photogenic
    how temporary and have you informed HSBC as this is a material change
    "It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"

    G_M/ Bowlhead99 RIP
  • MovingForwards
    MovingForwards Posts: 17,158 Forumite
    10,000 Posts Seventh Anniversary Name Dropper Photogenic
    @SimonBck

    https://www.mortgagestrategy.co.uk/news/hsbc-makes-changes-to-income-assessment/
    Mortgage started 2020, aiming to clear 31/12/2029.
  • SimonBck
    SimonBck Posts: 138 Forumite
    100 Posts First Anniversary Name Dropper
    It will be for 2 months. 
  • roosterpotatoes
    roosterpotatoes Posts: 563 Forumite
    Part of the Furniture 500 Posts Combo Breaker
    You will need to inform HSBC of this, if using a mortgage broker they will do this for you.  HSBC will ask for you to get a letter from your employer confirming your increase in wages once the reduction period is over.
  • SimonBck
    SimonBck Posts: 138 Forumite
    100 Posts First Anniversary Name Dropper
    Hopefully HSBC will not pull the offer because of this temporary reduction. We are at 90% LTV so I imagine it will be difficult for us to get a mortgage when things start to slowly get back to normal. 
  • ryan7777
    ryan7777 Posts: 1 Newbie
    First Post
    Hi,

    I have a similar problem. My company sent out a blanket 15% pay cut for all staff on our site without asking us to agree or give us a length other than saying it is temporary. This only applies to staff and not to the hourly paid workers on site as they are protected by an agreement with unions.

    Is this legal? 
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