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Furlough workers dilemma

Nationwide Building Society will only accept income from furloughed workers who have returned to work or will be returning to work by the 2nd November 2020.

As some of us slowly return to work, a few others are still on the furlough scheme that will soon end in October. Nationwide Building Society will only accept income from furloughed workers who have returned to work or will be returning to work by the 2nd November 2020.

An income cannot be used where an applicant doesn’t have a firm return work date

An income cannot be used where an applicant doesn’t have a firm return work date, or if their work date is after the 2nd November 2020. This applies to all applicants regardless of if they apply directly through Nationwide of through a Mortgage Broker in Sheffield and in response to the closure of the Governments furlough support scheme closure.

Unfortunately, this will also apply to pipeline borrowers who have received a DIP before 13th August 2020 and suffer a negative change in income, such as a Job loss or a reduction in pay.

Returning to Work

Depending on if the applicant is fully returning to work no later than the 2nd November and has the firm return date to work, Nationwide will use up to 100% of a basic income, including income that is currently treated as basic.

An exception applies for furloughed applicants on parental leave. However, a letter from the employer confirming the firm date the applicant will be fully returning to work is required, and this should be supported by either.

Conformation the applicant’s terms and condition of employment will remain unchanged till the 2nd November, or full details of where there be a variation in the employment contract.

As the governments’ coronavirus job retention scheme comes to a close at the end of October we must ensure, as a responsible lender, that members can afford their mortgage payments both now and in the future.

Nationwide will take up to 100% of an applicant’s basic income

That is why we are asking all mortgage applicants from 13th August to provide a letter from their employer outlining a firm return to work date. Once that is confirmed, Nationwide will take up to 100% of an applicant’s basic income into consideration.

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