Furlough (again)

[ericmark]

All these hand outs, and all I get is 6 months free MOT, and have lost a lot of money.

 

[motorbiking]

It doesn't affect the credit rating, it affect the ability to repay calculation. Credit rating is just part of the formula. There was a lot of dodgy practice among mortgage brokers encouraging falsification of income among the self employed, so its more highly scrutinised now. For a self employed mortgage they have to consider business risk. If your business has been impacted by covid lockdown it will question the future sustainability and ability to repay. I wouldn't spend all this "bonus" money, we are going to be here at-least another 6 months and once the real recession bites it will be a lot tougher. At the moment we are burning the backlog of demand.

 

[ellal]

It doesn't affect the credit rating, it affect the ability to repay calculation. Credit rating is just part of the formula.

That's just semantics...

Edit:
"Since the furlough scheme was introduced in March as part of the Job Retention Scheme, many furloughed mortgage applicants have been rejected.

Britain’s fifth largest bank, TSB, recently announced that it lists furloughed workers’ income as just £1 in its system, leaving many of them with a credit limit of just £4.50.

Other banks, lenders and building societies are refusing to offer mortgages to some furloughed workers completely, with Nationwide and Metro Bank among the banks that are “reserving the right to refuse to take furloughed income into account when calculating mortgages”.

The changing of 'credit limit' has a tumble down effect on a person's credit rating in the future (!)

 

[Mottie]

That's just semantics...

Edit:
"Since the furlough scheme was introduced in March as part of the Job Retention Scheme, many furloughed mortgage applicants have been rejected.

Britain’s fifth largest bank, TSB, recently announced that it lists furloughed workers’ income as just £1 in its system, leaving many of them with a credit limit of just £4.50.

Other banks, lenders and building societies are refusing to offer mortgages to some furloughed workers completely, with Nationwide and Metro Bank among the banks that are “reserving the right to refuse to take furloughed income into account when calculating mortgages”.

The changing of 'credit limit' has a tumble down effect on a person's credit rating in the future (!)

Yeah, blah blah.... You still haven't explained why my credit rating is still as good as it is have you?

 

[motorbiking]

That's just semantics...

Edit:
"Since the furlough scheme was introduced in March as part of the Job Retention Scheme, many furloughed mortgage applicants have been rejected.

Britain’s fifth largest bank, TSB, recently announced that it lists furloughed workers’ income as just £1 in its system, leaving many of them with a credit limit of just £4.50.

Other banks, lenders and building societies are refusing to offer mortgages to some furloughed workers completely, with Nationwide and Metro Bank among the banks that are “reserving the right to refuse to take furloughed income into account when calculating mortgages”.

The changing of 'credit limit' has a tumble down effect on a person's credit rating in the future (!)

Nobody on furlough should be thinking of committing to buy a house right now if they need a mortgage.

 

[Harry Bloomfield]

All these hand outs, and all I get is 6 months free MOT, and have lost a lot of money.

Me too! Investments have gone down the pan

 

[motorbiking]

have you looked recently? after the initial shock mine seemed to over recover. But then I held a lot of Tesla and zoom which have exploded.

 

[Harry Bloomfield]

have you looked recently? after the initial shock mine seemed to over recover. But then I held a lot of Tesla and zoom which have exploded.

I hadn't checked for a while, but did just now - I am around 7% down on pre-covid with Aviva and BT is around the same. I really don't know why I kept the BT all this time

 

[motorbiking]

that will be mostly Lockdown 2.0 UK FTSEs took a dive last couple of days. Should pick up a bit. I think, now that its clear the PM is opting for every possible restriction that doesn't impact business.

 

[ericmark]

Yes I have lost a lot of money, it may well recover, only time will tell, and as it stands I can afford the loss. However I have agreed to sell my old house to my son, and he has moved in with my blessing, but as yet no money, I know I will get it, unless I die first, and I have enough to live on while waiting, but the leak in roof on my new house can't be fixed, no money to do the job, and he can't sell his old house, plus there is a problem getting materials, at the moment roof leak temporary repaired with paint.

My son has actually changed jobs even with the current situation, which has also affected his ability to get a mortgage, fact he is highly qualified is not taken into account, neither do they take into account his likely ability to borrow money, as we of course could lend it to another of our children.

My wife having cancer should increase my sons credit rating as he is more likely to be able to borrow money if she dies, but unless I sign to say I will support him, that is not considered.

In the old days when it was up to the bank manager it would have been considered, but today any self employed who has accepted furlough payments is clearly a high risk, so no wonder it will affect a mortgage.

 

[motorbiking]

Crazy times...
I know a few pilots who are looking to retrain, as they can't see demand picking up for 4 or 5 years. Some of those guys have spent 100k getting their licence.

 

[Harry Bloomfield]

Yes I have lost a lot of money, it may well recover, only time will tell, and as it stands I can afford the loss.

Likewise, you should never risk investing money you cannot afford to write off as a total loss. My bills are minimal, I like to do all the jobs around here and I am still mostly capable, if a little slower than I used to be. I have set myself up to minimise my bills, so I can live well within my income and even put some surplus by.

 

[noseall]

Crazy times...
I know a few pilots who are looking to retrain, as they can't see demand picking up for 4 or 5 years. Some of those guys have spent 100k getting their licence.

I'm working for a Rolls Royce (jet engines) employee at present. He says it will be a minimum of 5 years before the airline industry picks up. They are shedding jobs at an alarming rate at his place.

 

[motorbiking]

At the moment they are flying pilots to the south of France to literally fly the planes around the block once a week to stop them seizing.

 

[fillyboy]

I'm working for a Rolls Royce (jet engines) employee at present. He says it will be a minimum of 5 years before the airline industry picks up. They are shedding jobs at an alarming rate at his place.

Did you get cash up front?