Furlough pay and moving home mortgage

911bill

Hi all,

Hope you are keeping safe and well.

I have just accepted an offer on my current home, I believe I have found a house I would like to make an offer on but I can’t help but feel worried that I will not get the additional mortgage amount required to buy it, as I was originally offered pre-COVID.

The current mortgage period on my place ends at the end of July, with Barclays. I am a sales person and I am only getting 100% of my basic which makes up a smaller chunk of the pay I usually get. I did call Barclays and after lots of being put on hold, I got a bit of a hazey answer to the following question, will the mortgage lender only look at my furlough pay and not what I hve always been paid etc.

so I feel really unsure of what to do, I don’t want to waste anyone’s time by making an offer which will not be possible.  I am returning to work on July 13th, my boss has said he will remedy the lack of commission from the last 3 months so I am hoping I can explain this to the lender to show that I will be back to what I would have been on anyway. 

Do I get my employer to write a letter basically saying that I was furloughed due to the unknown circumstances and that what I wasn’t being paid in commission due to it not being allowed as part of the furlough scheme.

Can anyone offer any advice of what I can do here? I really don’t want to waste people’s time, set myself up for a fall or possibly miss a way of making this work. 

I normally earn £70k a year but my basic is only £22k.
I have £132k remaining on my current mortgage and just agreed an offer of £315k.
the property I want is £470k.

many thanks for any help.

911bill

Is everyone at the beach? 😁

Penguin_

Is your commission written into your contract of employment?

Thrugelmir

Historic earnings may well mean little in the short term. A letter from your employer provies no benefit either. The reasons for you being furloughed being somewhat obvious. 

911bill

Only the percentage I receive per contract. We have seen no drop in earnings during the period but as new sales enquires dropped off the planet, no support calls etc etc, the majority of us across many job titles, were furloughed while the directors pretty much stepped in to cover the runnings of the business and few support calls which came in. Unfortunate timing but fortunate and fortunate to have a job still. Just no new house it seems! Just don’t know what to do now I have a buyer and was ready to buy!