Whether to disclose furlough or not?

Majoggy

We got our mortgage offer approved in the middle of March. However since lockdown I have been on furlough and have only just returned to work - my partner has worked throughout.

I know I am supposed to disclose this, but the lender has taken such a long time to respond historically (we wasted 6 weeks waiting from them to OK something very straightforward) we are worried that this will kill the process altogether or slow it past the expiration date of the original offer (last week of August). 

I understand we run the risk of being asked for more payslips closer to completion - would this totally torpedo the whole thing even if we still meet the affordability criteria?

We are in the love with the flat and desperate to move in asap. The broker has told us we must declare any change in circumstances whilst implying in not-so-many words that the best thing is to remain quiet.

We will be exchanging and completing on the same day.

Carrot007

If your employer is topping it up to 100% there is not a change in circumstances, otherwise there is.

Serdar048

Hi we are due to complete on 6th july me and my wife both on furlough however we got full wages while we were on furlough  we had our offer end of march so i did not report anything to lender because we dont actually earning less and we will go back to work on 4th july i will let you know what happens next week if we can complate get our keys we will exchange and complate same day let me know also which lender you are with good luck 

jamielutz1987

@majoggy If you were on furlough temporarily, and now returned to work and been on 100% pay the whole time, I don't see why you need to inform your broker or lender. Who is the lender?

Majoggy

Sorry - to clarify, my salary was reduced by 20 percent over this time.

I actually found some part time freelance work during this period so my take home pay has increased over lockdown, however I understand this wouldn't necessarily be taken into consideration.

Majoggy

The lender is Coventry.

jamielutz1987

@majoggy If exchange hasn’t taken place before offer expiry in August, a new application will need to be submitted.

Usually, Coventry only requires latest payslip so in your place I would just keep mum and not tell the broker about the temporary reduction in pay now that you are back at work on full pay. But that's just what I would do.