lender checking with employer dk5294

#1
Am I correct in thinking that lenders check your employment with your employer before offering a mortgage? Surely they would verify your contract/employment/hours with them?



Husbands boss has just told him that they tend to just use his payslips as evidence and contact HR to confirm he is still employed with no disciplinary proceedings pending etc.





This seems quite lax to me, but I'm not a broker/lender and more an over thinker. He's applied to Leeds who seem quite fickle, so I don't imagine them doing anything automated.

#3
They usually just check payslips and bank accounts.



Which is strange because when we rented they wanted all sorts and were ringing up employers etc (I guess they have to do SOMETHING for all their stupid high fees when renting).



Seems a bit backwards that a 25 year mortgage doesn't require many checks but a 12 month tenancy does. But then messing around with a mortgage company rather than a landlord are 2 different things, and 25 years is a long time - they have security in the actual property.



The care more that the property is worth what it is and you have big enough deposit to offset it potentially going down in value or to cover fees when selling it if you don't pay.

#4
HSBC in 2008 required an employers letter for my mortgage. The wrote to HR, I'm HR!, I prepared the letter in the MD's name and got him to sign it



If I recall correctly it was just to confirm type of employment eg full time permanent, salary, start date, whether I was in a probation period or not and whether there was any reason to think the job wouldn't continue.

#5
What lender did you use? I'm not sure if it would be beneficial or not if leeds didn't check! Husband is paid hourly, set hours with an OT rate for every 0.5hrs over paid at the OT rate, but that varies week to week. So I don't know how HR would work this out, but they couldn't confirm OT was guaranteed as that's at a managers discretion.



He works for royal mail and because of the way the shifts work he's always guaranteed overtime they just can't say how much a week. The minimum is an hour and there's no max.

#6
This will be lender specific.



Some lenders will contact an employer directly for a reference whereas others are happy to simply check pay slips as they can see what tax etc is being paid.

#7
I'd like to think Leeds would manually check. If they are just using payslips, there is so much room for error. My husbands YTD is close to 30k as he was an engineer until 6 months ago. He earns nowhere near that now, so although it would really pass affordability if they just used the bottom line figures, it would be extremely incorrect!

#8
It's very lender specific but usually payslips are enough, if not then bank statements should corroborate.



Most employers dislike giving the information so lenders rely on payslips, bank stats if it's a bit of a higher risk and p60's if they remain in doubt.

#9



What lender did you use? I'm not sure if it would be beneficial or not if leeds didn't check! Husband is paid hourly, set hours with an OT rate for every 0.5hrs over paid at the OT rate, but that varies week to week. So I don't know how HR would work this out, but they couldn't confirm OT was guaranteed as that's at a managers discretion.



He works for royal mail and because of the way the shifts work he's always guaranteed overtime they just can't say how much a week. The minimum is an hour and there's no max.
Originally posted by dk5294


Hiya, I just changed my mortgage with Santander and had to go through new affordability checks. If overtime is not guaranteed (as it is with me) they will take the last 3 months payslips and rate that as secondary income at 50% of weighing. It's lender specific though so the internet or a quick call to your lender to check might be useful?

#10
To my knowledge Halifax didn't check my employment (I bank with Halifax so they had access to my bank statements) but they did get a reference from OH's employers (he doesn't bank with Halifax so they didn't have access to his statements)

It may have also been due to my OH doing 10 hours more a week than what his contract stated and me doing an average of 5hours (but less than that at the time of applying)

We're not entirely sure why they didn't ask for a reference from mine, they may have asked for one, ad I might not be aware of it, my OH's employer sent him a letter asking for his permission, I didn't get one asking for mine though, but we are employed in different places and different industry's. I'm not sure what the standard procedure is for this.



This was a bit of a ramble but I hope I helped.

Who is online

Users browsing this forum: No registered users and 1 guest

cron