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  • FIRST POST
    • ozmusafir
    • By ozmusafir 30th Nov 17, 6:36 PM
    • 26Posts
    • 1Thanks
    ozmusafir
    pay varies monthly causing issues with mortgage application.
    • #1
    • 30th Nov 17, 6:36 PM
    pay varies monthly causing issues with mortgage application. 30th Nov 17 at 6:36 PM
    I have two jobs and one of my jobs involves working in a supermarket. I'm applying for a mortgage and the supermarket payslip has been flagged up due to variations in pay which vary between a couple of pounds. I have quizzed my manager regarding the issue because I work contract hours with no overtime, however, he wasn't able to answer why it varies monthly. I'm not able to provide my IFA with a satisfactory answer. Does that mean, I can't get a mortgage?
Page 1
    • ACG
    • By ACG 30th Nov 17, 7:09 PM
    • 15,879 Posts
    • 8,133 Thanks
    ACG
    • #2
    • 30th Nov 17, 7:09 PM
    • #2
    • 30th Nov 17, 7:09 PM
    Presumably it varies depending on how many days in the month?

    Who is the lender?
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • molerat
    • By molerat 30th Nov 17, 7:11 PM
    • 17,474 Posts
    • 11,700 Thanks
    molerat
    • #3
    • 30th Nov 17, 7:11 PM
    • #3
    • 30th Nov 17, 7:11 PM
    If you are contracted to work say 3 hours per M-F and are paid monthly then your pay will likely differ month to month as there are a different number of week days in a month, the same if you only work weekends. You need to understand how you are paid.
    www.helpforheroes.org.uk/donations.html
    • ozmusafir
    • By ozmusafir 30th Nov 17, 7:12 PM
    • 26 Posts
    • 1 Thanks
    ozmusafir
    • #4
    • 30th Nov 17, 7:12 PM
    • #4
    • 30th Nov 17, 7:12 PM
    Presumably it varies depending on how many days in the month?

    Who is the lender?
    Originally posted by ACG
    I'm paid monthly, therefore it varies every month.

    on a Saturday I work 4 hours (take 15 min break )
    sunday i work 8 hours (take 30 min break)

    the break is unpaid.

    on the sunday i earn time and a half.

    on my payslip my contract hours are 11.25 and hourly pay is £7.621.
    The lender is halifax
    Last edited by ozmusafir; 30-11-2017 at 7:21 PM.
    • ACG
    • By ACG 30th Nov 17, 7:35 PM
    • 15,879 Posts
    • 8,133 Thanks
    ACG
    • #5
    • 30th Nov 17, 7:35 PM
    • #5
    • 30th Nov 17, 7:35 PM
    I'm paid monthly, therefore it varies every month.

    on a Saturday I work 4 hours (take 15 min break )
    sunday i work 8 hours (take 30 min break)

    the break is unpaid.

    on the sunday i earn time and a half.

    on my payslip my contract hours are 11.25 and hourly pay is £7.621.
    The lender is halifax
    Originally posted by ozmusafir
    Is that not your answer then?
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • ozmusafir
    • By ozmusafir 30th Nov 17, 8:00 PM
    • 26 Posts
    • 1 Thanks
    ozmusafir
    • #6
    • 30th Nov 17, 8:00 PM
    • #6
    • 30th Nov 17, 8:00 PM
    Is that not your answer then?
    Originally posted by ACG
    shouldn't the monthly payment be the same every month?
    Oct month I was paid £358 and Nov month I was paid £364.
    • ACG
    • By ACG 30th Nov 17, 8:06 PM
    • 15,879 Posts
    • 8,133 Thanks
    ACG
    • #7
    • 30th Nov 17, 8:06 PM
    • #7
    • 30th Nov 17, 8:06 PM
    I realise this is not the case, but just to keep it simple, if you worked Monday to Friday and there were 28 days in a month and the 1st of the month was a Saturday, you would work 20 days in the month.

    If there were 31 days in the month and you worked Monday to Friday with the 1st being a Saturday you would work 21 days in the month.

    Yours is a little more complicated as your shifts can vary in days and pay rates, but the theory is the same. Your monthly income will vary.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • ozmusafir
    • By ozmusafir 30th Nov 17, 8:17 PM
    • 26 Posts
    • 1 Thanks
    ozmusafir
    • #8
    • 30th Nov 17, 8:17 PM
    • #8
    • 30th Nov 17, 8:17 PM
    I realise this is not the case, but just to keep it simple, if you worked Monday to Friday and there were 28 days in a month and the 1st of the month was a Saturday, you would work 20 days in the month.

    If there were 31 days in the month and you worked Monday to Friday with the 1st being a Saturday you would work 21 days in the month.

    Yours is a little more complicated as your shifts can vary in days and pay rates, but the theory is the same. Your monthly income will vary.
    Originally posted by ACG
    Thank for a simplified explanation but this has confused the life out of me. Due to the discrepancy, how do I go about resolving it with the lender?
    • ACG
    • By ACG 30th Nov 17, 8:30 PM
    • 15,879 Posts
    • 8,133 Thanks
    ACG
    • #9
    • 30th Nov 17, 8:30 PM
    • #9
    • 30th Nov 17, 8:30 PM
    I can not tell you what to tell the lender as I do not know the answer 100%, but this seems the only logical answer.

    You could speak to your HR department and ask them to explain why it varies?


    Pull out a calender for the last 2 months.
    Write down every day you worked, your hourly pay for the day, the number of hours you worked and the pay for the day.

    Do that every day for a month and total it up.

    Then do the same again for the next month.

    Maybe that will help you to see how/why it differs.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • Thrugelmir
    • By Thrugelmir 30th Nov 17, 9:31 PM
    • 56,196 Posts
    • 49,572 Thanks
    Thrugelmir
    Thank for a simplified explanation but this has confused the life out of me. Due to the discrepancy, how do I go about resolving it with the lender?
    Originally posted by ozmusafir
    Set out what hours you actually worked in the respective months.
    “Opportunities come infrequently. When it rains gold, put out the bucket, not the thimble”
    ― Warren Buffett
    • amnblog
    • By amnblog 1st Dec 17, 7:55 AM
    • 10,070 Posts
    • 3,925 Thanks
    amnblog
    Halifax hate variation in pay slips, or banked pay not matching payslip.

    We had a client this year under £4 net out on nearly £6K due to a clerical error and that was an issue we needed to manage.

    Quite simply this is something for your IFA to sort - that is what they are being paid for.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • ozmusafir
    • By ozmusafir 1st Dec 17, 6:17 PM
    • 26 Posts
    • 1 Thanks
    ozmusafir
    Thank you, everyone, that helped me out.
    I manage to work out my basic pay and everything calculated up.

    My next issue is the following:

    I took holiday on Oct and its written on my payslip as holiday pay.
    Does any know what calculation is used by Tesco to determine holiday pay?
    • ACG
    • By ACG 1st Dec 17, 6:33 PM
    • 15,879 Posts
    • 8,133 Thanks
    ACG
    Have you had a look at your contract or spoken to your HR people?
    Do Halifax really want to know about that?
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • ozmusafir
    • By ozmusafir 1st Dec 17, 7:22 PM
    • 26 Posts
    • 1 Thanks
    ozmusafir
    According to my contract the holiday pay is averaged by my 3 months of earning. But the number is averaged by is known to me.

    The Tesco HR team is useless and unable to provide a efficient answer.

    My MA wants me to explain exactly the formula used so he’s able to forward this information to the lender.

    I was under the impression the lender is able to verify basic monthly salary by asking for a reference if payslips has anomalies or variations.
    • Thrugelmir
    • By Thrugelmir 1st Dec 17, 11:04 PM
    • 56,196 Posts
    • 49,572 Thanks
    Thrugelmir
    According to my contract the holiday pay is averaged by my 3 months of earning. But the number is averaged by is known to me.
    Originally posted by ozmusafir
    Easy enough to find.

    Your average earnings are based on the pay you receive
    in the 12 weeks before your holiday.

    All variable pay you receive such as overtime, premiums,
    or call-out pay, will be included in your average holiday
    pay. Any one-off payments will not be included.
    “Opportunities come infrequently. When it rains gold, put out the bucket, not the thimble”
    ― Warren Buffett
    • ozmusafir
    • By ozmusafir 2nd Dec 17, 12:18 PM
    • 26 Posts
    • 1 Thanks
    ozmusafir
    Easy enough to find.
    Originally posted by Thrugelmir
    Thank you, I came across the this in the staff handbook. I'm unable to find out how the holiday pay is averaged. Is it averaged by 3 or by the weekly hours?

    For example, in August I got holiday pay of £123.84.

    My salary for the previous 12 weeks are below

    09/17 = 592.87
    08/11 = 358.52
    07/11 = 470.45

    I use many averaging methods but unable to reach the holiday figure of £123.84.
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