YTD and Monthly Earnings Disparity

AnalogueNomad · 2 September 2020 at 11:09AM

Hi, I’m currently on furlough having worked part-time last year. I’m hoping to return to work on full-time hours next month. I’m also hopeful that the pay rise I agreed with my employer before the pandemic will go ahead. Obviously my furlough pay is based on the previous 12 months’ earnings, so is based on my part time earnings and excludes the pay increase that was planned.

My question is, if there is a disparity between my YTD earnings and my monthly earnings on my payslips when I come to apply for a mortgage, could this have a negative impact on my application? Percentage-wise it’s a pretty significant change, from about £15k last year to £26k. We’re hoping to buy in Feb-March time.

Thanks in advance!

Jadek · 2 September 2020 at 2:44PM

When you apply for a mortgage you generally have to submit 3 months worth of payslips, which, as I understand it, is what they use to prove your income. If you are not planning to buy until February / March then, assuming you return to work full time next month, your payslips will show your full time wage for the period required. The YTD won’t be a discrepancy, it will simply show that you have had a change to your salary over the past 12 months, which will be the case for a lot of people. I may be wrong but I think lenders realise this and are fine with it.