Mortgage application employment question

meniehill

Hi,
My partner and myself hope to move house soon. My property is ready to go on the market, My employment status is that I have been employed at the same business for 10 years but we have been taken over by a new company who say we are probationary employees and my new pay slips haven't had the tax sorted out yet so I haven't been taxed yet although my national insurance contributions are shown to be deducted on the pay slips.I have about 10 weeks pay slips from my new employer.

I would assume any mortgage provider will ask for proof of earnings, will the fact that my tax situation is not sorted yet on my pay slips be a red flag on the application, which will require the underighter to make further enquires about my employment status or will the fact that I've worked at the same place of work for so long not make this an issue? I guess my problem will be with the question about employment on the application will it be "How long have you worked with your current employer?" or will it ask for my employer address then ask "How long have you worked there?"

My current mortgage provider is A& L on S.L.V. Been with them 6 years and would be happy to stay with them because it's tracking the low interest rate and they have a record of my employment status so may not require further confirmation as I'm working at the same place since my last application. Single applicant on current mortgage but want a joint mortgage. Hope to borrow 65K have 100k deposit on property about 155k that needs work. Both my partner and myself earn 19k each, both have excellent credit history no debt other than partners student loan. Partner works in local government. Is this another potential red flag?
Thanks for any advice.

meniehill

Any advice greatly appreciated

Thrugelmir

Firstly if you've been taken over (the entire Company that is). Then you will be protected under TUPE - Transfer of Undertaking (Protection of Employment) Regulations.

In summary your employment will be regarded as continuous that includes the length of service and terms and conditions of your employment contract. Work hours, pay rate and holidays. Unlawful amendment to same can leave the new company to claims of unfair dismissal.

No reason why your tax hasn't been sorted out yet. As if you've been transferred to new co you should have received a p45 as part of the process.

Suggest you get matters resolved before progressing mortgage application further.

meniehill

Many thanks for the reply. My employer doesn't recognise the TUPE and I have raised the subject with them but they are unprepared to recognise it and continue to dismiss my concerns when I raise it, so unless I'm prepared to force the issue, which at this point I'm not, because they have been good employers and treated me well, in every other area except this one and I feel by doing so, would compromise my position. Obviously, if this situation was to change, the TUPE would be more of a priority and my focus would change to my rights in regard to employment law rather than what questions I have to answer.

Will the fact that my new employer have issued a permenent contract after three months, which will be soon, will a 3 months permenent contract be enough to reassure my mortgage provided of my employment status.

Thrugelmir

Doesn't recognise TUPE? I would have grave concerns as to your employers intentions if this was the case. Your loss of accrued rights is considerable.

3 months employment may well not be sufficent in length of time for a mortgage application.

opinions4u

This is a really awkward situation.

If your old employer fired you, got taken over, and the new owners re-recruited you, you have been employed for a period of weeks, not years.

If your old employer got taken over and your employment is continuous, then you can reasonably declare 10 years on a mortgage application form.

That said, if your current employer is willing to ignore TUPE regulations, which are backed by the law of the land, I would suggest that you may want to reconsider taking on new debt. I wouldn't trust them as far as I could throw them!

Here's a document from the Unite union about TUPE. I think people you work with are going to need it at some stage.

I suspect you will be able to get a mortgage given earnings stated and LTV though. But a portable mortgage product doesn't guarantee underwriting acceptance.

meniehill

Thanks for the replies, I'll answer any questions on the application as continious employment for 10 years which as the law recognises is correct. If during the application it becomes an issue, I'll inform my boss he's breaking the law by not recognising my rights.

Thrugelmir

meniehill wrote: »

Thanks for the replies, I'll answer any questions on the application as continious employment for 10 years

Thats the approach I would take.

There's no question that you would win a case at an industrial tribunal if the sitution ever arose. Just make sure you keep all the documentary evidence.

Conrad

meniehill wrote: »

Thanks for the replies, I'll answer any questions on the application as continious employment for 10 years which as the law recognises is correct. If during the application it becomes an issue, I'll inform my boss he's breaking the law by not recognising my rights.

Won't your payslips reflect 3 weeks employment though, for example 'total gross pay to date'?

The payslips will drive the lenders initial thoughts and I'm not sure they will be interested in TUPE, as this has nothing to do with mortgage underwriting. I suspect they might just use the 3 weeks employment as it is a new employer in law.

One you need to discuss with lender up front in detail. Insist an underwriter gives you an up front assesment of this so you avoid wasting time / fees.

Thrugelmir

Conrad wrote: »

Won't your payslips reflect 3 weeks employment though, for example 'total gross pay to date'?

This would be the case irrespective of the employers acknowledgement of TUPE.

Conrad

Thrugelmir wrote: »

This would be the case irrespective of the employers acknowledgement of TUPE.

Exactly my point, so I cannot see a lender agreeing the OP has been employed more than 3 weeks.

Always comes back to repossession regulations - if the OP was in a desperate fight not to be repo's / lose money, I can guarantee they will say anything to aid thier position, which would include > "the lender knew my employer had changed so will have known the risks thjat they might not keep me on after propbation, so they cant now reposses me as they accepted the risks".