Lenders Checks on Employment Status

cheersthanksbye

When applying for a mortgage, to what level do lenders generally check your employment status? Is it a letter to your employer, a phone call?

Any info on the full steps in checking an application would be gratefully received.

Cheers!
Richard

payless

varies from lender to lender-
some want payslips and letter from employers- and have known some lenders call employer on receipt of letter "to confirm certain items"
But there are others that  don't usually check with employers , just either relying on documents such as payslips, or even on some "fast track" cases not even bothering with those.

However note -
Many lenders will look at a number of random cases and will perform extended checks

Always best to be totally upfront about your situation to lender or broker and they will see what can be done with your situation

I remember some while back whilst working in an estate agent, a buyer had his mortgage offer pulled by a big lender after they discovered he lied on an application about income/ employment status ( he had dealt thro' a different adviser - not me!)
What made matters worse for that chap, was he had already exchanged contracts !

cheersthanksbye

Thanks.

The potential problem I face is this: I work as a contractor (employed on a rolling 6-month contract) so pretty much consider myself to be self employed. When this contract ends I find other work currently available on the market.

Unlike most contractors whom operate through their own PLC (and would be treated as self employed from the view of a mortgage), I use an umbrella company whom I pay each week to process my wages.

Now in the eyes of the law, my umbrella company is technically my employer and I consult on behalf of them.

As the umbrella company act as my employer, could I get away (even if they perform a check) with stating my umbrella company as my full time employer? They have stated that they would happily write me a letter to confirm I work for them.

I hope this makes sense.

payless

Have come across this type of thing many times before

I have always talked the situation thro' with the lender and they take each case on its own merits

--
The questions asked by the lenders who make employment contact , are often more in depth.

Fairdo_2

As per payless' post, this will not necessarily be an issue, if you have a good history of renewals to your rolling contracts. This, to some lenders, is as good as employed. Also, as payless said, if you do not really have anything to hide, it should be in your own interest to be up front anyway.

Common sense can be found from some lenders and you can guarantee some will be more flexible with substantial deposit available from your side!