SEISS/Mortgage application

Jeremy535897

Presumably the logic is that there won't need to be these grants next year, but the same logic would suggest that turnover should increase to replace them.

justwhat

We have applied to port our mortgage. We did get asked if we claimed seiss. They did not ask about property grants. Our mortgage application always has to go to an underwriter.(low earnings, but have savings and other properties).  
due a decision in next few days. 

Sparklestar1127

We have just had a mortgage offer from Platform. They asked about government support in the way of SEISS and universal credit and wanted proof that hubby’s income was back up to normal levels by way of a business bank account statement. Mortgage Adviser has advised against claiming the 2nd until after completion. Seems wholly unfair but still, multiple people have said it’s basically declaring your business income is down. 

justwhat

Jeremy535897 said:

Presumably the logic is that there won't need to be these grants next year, but the same logic would suggest that turnover should increase to replace them.

The assumption is that the majority of SE are going to recover from this. I personally don't think they will.  Many do not manage money properly or have not saved for the rainy day. 

justwhat

Sparklestar1127 said:

 Seems wholly unfair but still, multiple people have said it’s basically declaring your business income is down. 

No.  Biggest misconception about seiss, its not totally income based.   

Sparklestar1127

justwhat said:

Sparklestar1127 said:

 Seems wholly unfair but still, multiple people have said it’s basically declaring your business income is down. 

No.  Biggest misconception about seiss, its not totally income based.   

No, I know. Seems so unfair. When really, even if you’ve had to buy PPE as an extra cost, you’re adversely affected. I understand mortgage companies protecting their lending, but still, I’m far, far too nervous to claim the 2nd grant incase my mortgage company pull my offer. 

mobilejo

The algorithm seems logical, even if the end result in a select few cases may be unfair.
A SEISS claim = income adversely affected by CV. 
Adversely affected this time = likelihood of being adversely affected again if a repeat of these circumstances, but next time these grants probably won't be available again.

Lenders appear to be prudent with who they lend to. Makes sense to only lend to people whose income is less at risk from something that could very well happen again and can have big consequences when it does happen. Its a real life stress test and is useful information for an underwriter.

SpreadableToast

justwhat said:

Jeremy535897 said:

Presumably the logic is that there won't need to be these grants next year, but the same logic would suggest that turnover should increase to replace them.

The assumption is that the majority of SE are going to recover from this. I personally don't think they will.  Many do not manage money properly or have not saved for the rainy day. 

But even if you have money saved for a rainy day, or are perfectly good with managing money you may still be eligible for SEISS.  They don't ask "are you capable of supporting yourself for the next few months or do you need help?" but "have you been adversely affected by Coronavirus" which is, realistically, a lot of people, even if hey just had to buy a mask or two.

justwhat

mobilejo said:

The algorithm seems logical, even if the end result in a select few cases may be unfair.
A SEISS claim = income adversely affected by CV. 
Adversely affected this time = likelihood of being adversely affected again if a repeat of these circumstances, but next time these grants probably won't be available again.

Lenders appear to be prudent with who they lend to. Makes sense to only lend to people whose income is less at risk from something that could very well happen again and can have big consequences when it does happen. Its a real life stress test and is useful information for an underwriter.

"A SEISS claim = income adversely affected by CV" 
That's not how SEISS works. (its only a small part of it). And there can be no effect on turnover/income.
Dont get me wrong anyone who has claimed SEISS should go to an underwriter. But to assume its income based issue , is just wrong. 

justwhat

SpreadableToast said:

justwhat said:

Jeremy535897 said:

Presumably the logic is that there won't need to be these grants next year, but the same logic would suggest that turnover should increase to replace them.

The assumption is that the majority of SE are going to recover from this. I personally don't think they will.  Many do not manage money properly or have not saved for the rainy day. 

But even if you have money saved for a rainy day, or are perfectly good with managing money you may still be eligible for SEISS.  They don't ask "are you capable of supporting yourself for the next few months or do you need help?" but "have you been adversely affected by Coronavirus" which is, realistically, a lot of people, even if hey just had to buy a mask or two.

There are allot of people coming out of the woodwork that should not continue trading.  Some bad business practices and little planning for the future.
From the mortgage point of view SE applicants that have claimed SEISS , should probably be referred to the underwriter.(rather than making the assumption there income is trashed )