Temporary Pay Reduction - Completion in 2 Weeks

04brobins

Hi all,
Bit of a nightmare time but my employer has announced temporary 20% pay cuts for staff earning over a certain threshold. We are due to complete on our purchase next Friday so this is obviously a bit of a nightmare in terms of any final checks. The odd thing here is that I'm actually still earning slightly more now than I was at the time of application due to a promotion that happened in between, I'll give some context to that below in figures:

At application which was approved and is what our offer is currently based on - Salary £37,000 + Car Allowance of £3600 = £40,600 all in.
I then had a promotion which took my salary to £47,400 + Car Allowance of £3600 = £51000 all in. The pay reduction is only on the £47,400 and car is left unaffected so my current adjusted salary is £37,920 + £3600 car = £41,520.

I'm honestly not sure what to do here as financially I'm still earning as much or more than what I was at the approved application. Do I tell them or just leave it as even if they ask for a payslip before releasing the funds they'll see I'm earning slightly more?

Any help appreciated!

jamielutz1987

Is there anything in the latest payslip that indicates that there has been a temporary pay-cut?

I won't lie, it's a tricky situation to be in. Letting your broker or lender know might mean triggering actions that may well lead to a delay or worse.

Based purely on what you have said, and assuming that the mortgage offer isn't more than 2-3 months old, in your place I personally would keep quiet, but of course there are risks associated with that course of action as well.

04brobins

Thanks for the reply.

We actually had the offer extended at the end of March and they requested an up to date payslip at that point. So no the offer isn't particularly old but in the current climate it seems perfectly reasonable for them to request confirmation of earnings again prior to releasing funds.

The payslip shows my full rate of pay under "Payments" and then a separate line for "Salary Adjustment" then a negative figure.

It's tricky I know and couldn't really be at a worse time but we have been assured it's temporary even though at present there is no set in stone end date.

04brobins

Completely unexpected turn of events but my employer has now informed me that our full salaries will be reinstated next month.

With that in mind, if I just keep my payslip for this month showing the reduction and the letter informing of the reinstatement next month then will that suffice should they ask for a latest payslip for confirmation of earnings?

Crazy times.