The post-pandemic impact of the Employment Wage Subsidy Scheme
With the economy opening again as restrictions have lifted, public morale is starting to feel more upbeat again.
The very successful vaccination campaign is well underway, and it can be easy to forget that many people are still suffering from the backlash of the COVID-19 pandemic.
It appears that more than 350,000 people are still utilising the Employment Wage Subsidy Scheme (EWSS) – including those who are currently working.
This does not just include those who have chosen to claim the welfare support exclusively, but those who are impacted by their employers’ decision to do so too.
Those companies whose turnover will be 30 per cent down on the 2019 figures will see their workers on the EWSS. Notably, this is many businesses in the hospitality and tourism sector that were affected by the pandemic most dramatically.
Because of this, it seems that banks are reluctant to take on much mortgage business from people that are on the EWSS.
In October 2020, the Bank of Ireland was satisfied to continue with approving loans. However, it seems that many people are now struggling to get a loan approved due to their employers’ decision to put workers on EWSS.
To help with this, it is advised that individuals continue to save their money. If you are looking for a loan to cover a lower per cent of the property value, the wriggle room should go a long way to offset a bank’s wariness over the EWSS issue.
The Government’s proposed shared equity scheme will likely only see them take a 20 per cent stake in homes and that is only if you cannot meet the required mortgage based on Central Bank rules.
We would advise that you try going through a broker. If this fails to work and a loan is still declined, we recommend that you discuss the situation with your employer or wait until they exit the EWSS scheme.