My wife is paid hourly and we are going to be using combined savings and income. The lowest amount our savings dipped to during this period was about £27,450. It is my understanding that because she is paid hourly those seven payslips will be averaged out to calculate the yearly salary. I have used the financial requirement calculator and it appears we meet the requirement with a little but of breathing room.
Yes, if she is paid an hourly wage with no fixed annual income, they will add up all the payslips and work out an annual average.
My main concern is that will they count the months of Oct and Nov even though they are not the actual wage but the result of backpay because of incorrect payments? I've read that you need to meet the requirement for the 6 month period but also show that you will continue to.I'm uncertain how that will affect our application. Her "current wage" is about £15,000 per year which we currently have enough savings to make up the shortfall for. Is that how they will see it?
Okay, so the way they will look at it is:
Previous earnings from the last 6 months = Total of all the payslips averaged to give an annual wage
Future annual earnings from now on = (her current hourly wage X by her contracted hours per week) X 52 weeks
So,
Previous earnings = (£8593.26 / 7 payslips) x 12 = £14,731.30
Future earnings (assuming £1255.93 is going to be her standard monthly wage) = £1255.93 x 12 = £15071.16
Assuming they take the lower figure of £14,731.30, you will need to show the following amount in savings has been held in your account in full for the whole 6 months:
Income Shortfall = £18,600 - £14,731.30 = £3,868.70
Savings needed
= £16,000 + (2.5 x £3,868.70)
= £16,000 + £9,671.75
= £25,671.75
And if they were to use the higher amount of £15,071.16, you would need to show £24,822.21 in savings.
So, as long as your savings have not dipped below £25.671.75, you will be fine
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