HSBC Mortgage whilst on Furlough

singh001

Hi All,
So had an application submitted via broker but then my partner was put on furlough which shows on her payslips, HSBC have come back stating that they need a letter from the employer with a return to work date and what her salary will be when she does return. Just wanted to see if anyone has had a similar experience and what the outcome was? Did they approve of the mortgage in the end or did you still have to wait until they went back to work?
My only worry is the employer can't provide a return to work date as this will be when the government decide to open non-essential shops.

singh001

Sorry - just to add i have also got the estate agent on my case, asking about everything. The valuation has been done and passed. Does the estate agent ask for proof of the mortgage offer ?

Nemogirl1

We recently got our offer (existing customers, porting our mortgage but also increasing). My partner is on flexible furlough, and the furlough element wasnt accepted. Luckily we could get enough, we also gave a letter which was generic to his company and said 31st March or sooner- our offer came through on the Monday agyer submitting documents on the sat before!

singh001

Nemogirl1 said:

We recently got our offer (existing customers, porting our mortgage but also increasing). My partner is on flexible furlough, and the furlough element wasnt accepted. Luckily we could get enough, we also gave a letter which was generic to his company and said 31st March or sooner- our offer came through on the Monday agyer submitting documents on the sat before!

Did you have to show proof to the estate agent of the mortgage offer? 

[Deleted User]

HSBC:  With effect from 01 November 2020, we will no longer accept applications from customer’s who are receiving furloughed income. Only earned income relating to the hours worked by the applicant, and paid by their employer, can be used in the affordability assessment.


The last few enquiries i have called them with they told me they want a return to work date and a payslip showing the return to normal (non furloughed) salary.   They may be more accommodating in the new lockdown.  I havent spoken to them since December about it

K_S

singh001 said:

Hi All,
So had an application submitted via broker but then my partner was put on furlough which shows on her payslips, HSBC have come back stating that they need a letter from the employer with a return to work date and what her salary will be when she does return. Just wanted to see if anyone has had a similar experience and what the outcome was? Did they approve of the mortgage in the end or did you still have to wait until they went back to work?
My only worry is the employer can't provide a return to work date as this will be when the government decide to open non-essential shops.

@singh001 What JMA said above. If your partner's employer cannot provide a letter, it's very unlikely that HSBC will consider her income for affordability.

With regard to the seller's EA, they do sometimes ask for a copy of the mortgage offer if there are long delays and/or they feel that there's something out of order with the buyer's mortgage proceedability during the conveyancing process.

Nemogirl1

singh001 said:

Nemogirl1 said:

We recently got our offer (existing customers, porting our mortgage but also increasing). My partner is on flexible furlough, and the furlough element wasnt accepted. Luckily we could get enough, we also gave a letter which was generic to his company and said 31st March or sooner- our offer came through on the Monday agyer submitting documents on the sat before!

Did you have to show proof to the estate agent of the mortgage offer? 

They asked for a mortgage in principle, no more!