Employer gone from weekly pay to monthly and has affected up my mortgage application.

sc120826

My employer has recently gone from weekly to monthly pay and they gave us all a loan to cover the gap in between which is now being deducted from our next 10 months payslips. This has reduced my net income even though the salary hasn't changed and so I can't borrow what I need. I have the funds available to pay it back to my employer and my advisor says the underwriter can accept this with a letter from my employer and evidence I had funds in place already so I didn't need the loan. My employer is saying I can't pay it back though. Anyone had a similar thing happen when employer switched from weekly to monthly, honestly it's so confusing as the letter were given says in bold and underline this will not affect your pay. But whilst it may not affect what I earn it does affect it if the net pay is reduced for the next 10 months because of the deduction for the loan.

Marcon

sc120826 said:

My employer has recently gone from weekly to monthly pay and they gave us all a loan to cover the gap in between which is now being deducted from our next 10 months payslips. This has reduced my net income even though the salary hasn't changed and so I can't borrow what I need. I have the funds available to pay it back to my employer and my advisor says the underwriter can accept this with a letter from my employer and evidence I had funds in place already so I didn't need the loan. My employer is saying I can't pay it back though. Anyone had a similar thing happen when employer switched from weekly to monthly, honestly it's so confusing as the letter were given says in bold and underline this will not affect your pay. But whilst it may not affect what I earn it does affect it if the net pay is reduced for the next 10 months because of the deduction for the loan.

It hasn't affected your pay overall, and that's the point which needs to be explained clearly and carefully to the underwriter. It's the ongoing salary which is important.

If you provide evidence that you have funds in place and didn't need the loan, then those funds should be taken into account when assessing the amount of loan for which you can qualify, particularly if you explain that the employer won't let you pay off 'their' loan early.

TELLIT01

If you aren't required or permitted to pay it back it's an advance on salary, not a loan.  That needs to be made clear to the potential mortgage advisor.  Ask you employer if they can give you a letter to that effect.

Savvy_Sue

Surely it shows on your payslip as either a loan repayment or an advance on salary repayment? And as such, your gross pay hasn't changed, and with the suggestions above you might still be OK?

EnPointe

sc120826 said:

My employer has recently gone from weekly to monthly pay and they gave us all a loan to cover the gap in between which is now being deducted from our next 10 months payslips. This has reduced my net income even though the salary hasn't changed and so I can't borrow what I need. I have the funds available to pay it back to my employer and my advisor says the underwriter can accept this with a letter from my employer and evidence I had funds in place already so I didn't need the loan. My employer is saying I can't pay it back though. Anyone had a similar thing happen when employer switched from weekly to monthly, honestly it's so confusing as the letter were given says in bold and underline this will not affect your pay. But whilst it may not affect what I earn it does affect it if the net pay is reduced for the next 10 months because of the deduction for the loan.

1. it has not changed your gross pay 
2. it has not changed your net pay over the course of  the year and  has not 'redueced  your net income' 
3.  your employer has  clearly explained this to you in writing 

sc120826

EnPointe said:

sc120826 said:

My employer has recently gone from weekly to monthly pay and they gave us all a loan to cover the gap in between which is now being deducted from our next 10 months payslips. This has reduced my net income even though the salary hasn't changed and so I can't borrow what I need. I have the funds available to pay it back to my employer and my advisor says the underwriter can accept this with a letter from my employer and evidence I had funds in place already so I didn't need the loan. My employer is saying I can't pay it back though. Anyone had a similar thing happen when employer switched from weekly to monthly, honestly it's so confusing as the letter were given says in bold and underline this will not affect your pay. But whilst it may not affect what I earn it does affect it if the net pay is reduced for the next 10 months because of the deduction for the loan.

1. it has not changed your gross pay 
2. it has not changed your net pay over the course of  the year and  has not 'redueced  your net income' 
3.  your employer has  clearly explained this to you in writing 

I don't know though it doesn't make sense. On weekly pay my salary worked out at just over £1900pm (£442 weekly net x 52 divided by 12) after tax and now it's under £1700pm net.

ACG

Its not affecting your pay, it is affecting your commitments. 
Your pay is the same but your expenditure is higher as you have this loan. 

If you have the money set aside for it and confirmation your employer will not allow you to pay it back, I would like ot think there will be a lender who will ignore it at normal/near normal rates. But it sounds like you might need to knock this application on the head. 

EnPointe

sc120826 said:

EnPointe said:

sc120826 said:

My employer has recently gone from weekly to monthly pay and they gave us all a loan to cover the gap in between which is now being deducted from our next 10 months payslips. This has reduced my net income even though the salary hasn't changed and so I can't borrow what I need. I have the funds available to pay it back to my employer and my advisor says the underwriter can accept this with a letter from my employer and evidence I had funds in place already so I didn't need the loan. My employer is saying I can't pay it back though. Anyone had a similar thing happen when employer switched from weekly to monthly, honestly it's so confusing as the letter were given says in bold and underline this will not affect your pay. But whilst it may not affect what I earn it does affect it if the net pay is reduced for the next 10 months because of the deduction for the loan.

1. it has not changed your gross pay 
2. it has not changed your net pay over the course of  the year and  has not 'redueced  your net income' 
3.  your employer has  clearly explained this to you in writing 

I don't know though it doesn't make sense. On weekly pay my salary worked out at just over £1900pm (£442 weekly net x 52 divided by 12) after tax and now it's under £1700pm net.

and how much was advanced ? 

 in a previous job   when we were TUPEd  were were  moved from Lunar ( 13 *4  weekly pay periods)  to Calender  monthly pay  and there was an advance/  loan made becasue of  how  the  pay  dates worked out  and that impacted on exact  tax and NI payments for a  number of months as it was  balanced back out