Mortgage offer on hold - furlough

tervozina

So our mortgage was approved last week but then my husband got furloughed. Even though it did not affect our financial circumstances in any way our mortgage advisor insisted on letting NatWest know about that. Today she received an email from NatWest saying that they cannot count furlough pay towards affordability and they have to wait until my husband is returned to work and show his last payslip before they can approve anything. 

My concern is that his November payslip will show furlough pay, though there will be commission pay as well earned in October as paid in arrears. So will we have to wait till end of December to show them a new payslip with no furlough pay? Or they can accept a November payslip and will just deduct whatever earned during furlough? Will they have to underwrite it again?
I am getting really worried looking at the tracker as there used to be an offer there, now there is none, just everything is ticked but not in an offer stage anymore. Is it withdrawn or on hold... Getting really stressed thinking about whole situation and kinda regretting telling about furlough to the bank. Really hoped to move next month. 

[Deleted User]

You're lucky your solicitor insisted on tellng the bank, or you could have ended up not getting a mortgage for a very, very long time.

Thrugelmir

tervozina said:

Even though it did not affect our financial circumstances in any way our mortgage advisor insisted on letting NatWest know about that. 

Companies don't furlough staff for fun. They'd much prefer them to be working and generating revenue. Rather than simply be a cost burden. 

tervozina

Deleted_User said:

You're lucky your solicitor insisted on tellng the bank, or you could have ended up not getting a mortgage for a very, very long time.

Broker insisted, not solicitor. Yeah I understand that was a right thing to do, I’m just worried what’s gonna happen now and how long it will take

MWT

tervozina said:

My concern is that his November payslip will show furlough pay, though there will be commission pay as well earned in October as paid in arrears. So will we have to wait till end of December to show them a new payslip with no furlough pay?

Yes, they will want to see that your husband is back working normally again. This isn't about affordability so the amount of commission on the November payslip is irrelevant, it is about showing his job status has returned to normal.

... and don't blame your mortgage advisor even a little bit for this, they have done their job correctly and kept you 'honest' by reporting what was a material change in his employment status.

It had to be reported even if his company are making up his salary to 100%, it is a sign that they have been impacted by the lock-down and is a significant change in his employment status, not reporting it would have been a bad mistake so thank your advisor for their diligence in protecting you from a potential error.