Why do lenders need proof of income...

AndrewSmith

tomstickland wrote:

Does bud miser live near Evesham?

:rotfl: hahaha

regularsaver1

I am easily confused?

jamesd

Gorgeous_George wrote:

Tax evasion/moneylaundering are serious business and I do not know of a single legal reason why I would wish to hide my sources of income.

I have no desire for my employer to know that I have a mortgage and may therefore be less able to freely switch jobs to get a higher income. That knowledge on their part may empower them to pay me less money, a significant loss to me.

Hiding income isn't the problem.

Of course, this isn't a realistic prospect - lenders will expect to be able to compromise my position to improve theirs.

Labman_2

Jamesd......what are you talking about? Please explain? I'm rapidly losing the will to live here!

jamesd

Labman, my employer isn't sure that I have need or desire for paid work, with good reason for them not knowing that based on what I did before they hired me. When they know I have a mortgage they can be pretty sure that I do need the job. This removes part of the "he could just walk and go and do something else" motivation from them.

This reasoning has no effect at all on what mortgage lenders will require, though. They require proof of income and that's just the way it is.

david29dpo

jamesd wrote:

Labman, my employer isn't sure that I have need or desire for paid work, with good reason for them not knowing that based on what I did before they hired me. When they know I have a mortgage they can be pretty sure that I do need the job. This removes part of the "he could just walk and go and do something else" motivation from them.

This reasoning has no effect at all on what mortgage lenders will require, though. They require proof of income and that's just the way it is.

Good point. I have been i that position with an employer. If he knew a didn't need the job, i would never i got a rise!

Carter_2

I would think most people 'need paid work' these days - how else are we to live??

If my lender required a reference to prove income, it would be requested from my HR dept, not my boss. Nonetheless, everybody I work with has a mortgage and dont see why this would be seen as negative in any way or has an impact on career progression/redundancy. What strange employers some people must work for is all I can say!

justpaper

at the end of the day lenders want too lend,. if u show them what they want to see thats the end of it,.

if u dont show them ur proof of income, they'll show u the door (for free)

Labman_2

It's their business.....& therefore their 'rules' apply....end of story. If you disagree/don't want to play, go somewhere else is what they'll in effect tell you I think.