Mortgage aip advice

19donnacraig84
19donnacraig84 Posts: 2
First Post
Newbie
edited 30 May 2020 at 11:47PM in Mortgages & endowments
Hi folks.
Looking for some advice. In February before civid-19 hit we put our house on the market for sale. We accepted an offer on our house yesterday. 

We went online to get a new aip as the 1 we applied for in march has expired. Now i have been put on furlough not because theres no work but because iam shielding. Hoping the shielding advice is changing soon. 
Iam on 80% of my basic and lost more than 20% because i do regular OT and not quite getting the amount needed.
When entering my income details do i enter my basic salary or 80% weekly basic × 52 for my annual income.

Thanks in advance.

Comments

  • Which lender is it? Somebody may be able to give advice on how to enter it (as presume it varies depending on lender). 

    But be aware some lenders don't accept furloughed applicants at all. I'd imagine all are carrying out checks due to the increased risk of no work in future (e.g. Debenhams restaurant staff were on furlough until Friday and now, sadly, get nothing!).

    Furlough isn't necessarily the end of the world, but may throw up a few questions. As you're on furlough, I'd look at using a broker (many offer online/telephone appointments) to ensure that it is the right decision to continue with the lender you got an AIP from. Whilst that lender may technically accept people on furlough, if they're known for asking 5000 questions about it... broker may advise you'd be better off going to another for an easier process.
  • hi somerset, thanks.
    It was with nationwide. As i have said I have been put on furlough due to shielding everyone is still at work except from shielders. I could get evidence from my employer if required. 

  • Hi - That's a positive that it's just due to you having to shield (and that everyone else is working) - rather than it being because you work in a high risk industry where lots of people aren't not working (e.g. hairdresser, many pubs).

    Nationwide's current guide for brokers is copied below - note the last 2 points might be an issue if you're reliant on the overtime for it to pass - so hopefully, it passes on 80% of basic  (They stopped accepting bonus/overtime/commission for all but 'key workers' a few weeks back). If it doesn't pass, you'll need to pause it or look for another option.

    My interpretation of the below is that if employer is topping it up (and can prove it) you enter 100% (of basic only), otherwise enter 80% of basic.

    If your client is employed and has been furloughed, we may accept the application, subject to the following:
    • We’ll accept 80% of their basic income up to a maximum of £2,500 pm (£30k per annum gross)
    • Bonus, overtime or commission are unacceptable
    • Any additional income is unacceptable e.g. shift/car/location (such as London Weighting)/TLR allowances.
    For any cases where the employer will be funding all or part of the difference between the basic income and the furlough payment, you'll need to obtain written confirmation via letter or verified email from the employer, including the amount payable whilst under furlough and how long this will continue for.


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