New mortgage application on furlough

[Deleted User]

My husband and I are in the process of buying a new build.
We are using the help to buy scheme (second purchase) with this you can only borrow 4.5 times your salary and as my husband is on 80% furlough this is really affect the figures for the mortgage and we're now short and require a bigger deposit. Has any one else had this situation? Are there any work around which can be used?
I'm waiting to hear back from our mortgage advisor if a letter from his employer would help or if my husband used holiday to top up to 100% would change the situation or not.
When he is on 100% we can hit the required amount and some so it's just so frustrating that things could slip through our fingers because of this now, or have to ask for a hefty loan from family members for the difference.

Any suggestions or advise would be appreciated!

MovingForwards

ruthdk87 said:

My husband and I are in the process of buying a new build.
We are using the help to buy scheme (second purchase) with this you can only borrow 4.5 times your salary and as my husband is on 80% furlough this is really affect the figures for the mortgage and we're now short and require a bigger deposit. Has any one else had this situation? Are there any work around which can be used?
I'm waiting to hear back from our mortgage advisor if a letter from his employer would help or if my husband used holiday to top up to 100% would change the situation or not.
When he is on 100% we can hit the required amount and some so it's just so frustrating that things could slip through our fingers because of this now, or have to ask for a hefty loan from family members for the difference.

Any suggestions or advise would be appreciated!

You will be better off asking on the mortgage board as that's where the resident brokers hang out.

The workaround is waiting until your husband is back at work and on 100% salary.

Letter from employer wouldn't help as it's hard cash and payslips the lenders want to see.

Using his holiday wouldn't make a difference ad that's only temporary and the lenders would see what you are trying to do.

Hefty loan from family may not be liked by the lenders as it affects affordability further.

sharpe106

ruthdk87 said:

My husband and I are in the process of buying a new build.
We are using the help to buy scheme (second purchase) with this you can only borrow 4.5 times your salary and as my husband is on 80% furlough this is really affect the figures for the mortgage and we're now short and require a bigger deposit. Has any one else had this situation? Are there any work around which can be used?
I'm waiting to hear back from our mortgage advisor if a letter from his employer would help or if my husband used holiday to top up to 100% would change the situation or not.
When he is on 100% we can hit the required amount and some so it's just so frustrating that things could slip through our fingers because of this now, or have to ask for a hefty loan from family members for the difference.

Any suggestions or advise would be appreciated!

Not sure why a letter from employer will help as if you have been furloughed the mortgage company must think the employer are struggling so there is no guarantee that work will again pick up. Which is why they are using the scheme. I would think your best bet is to wait till he back on normal pay.  I doubt the holiday pay will make any difference. The loan from family may make a difference as the bank will only see it as a deposit, so will change the amount you need to borrow, so make it less risky for them. But then what happens if your husband job is lost? you will have the mortgage and a loan from family to pay back.