Mortgage Lender now asking for Employer Reference

gazfocus

Mortgage application with Leeds building society was submitted a couple of weeks ago and my IFA has told me that Leeds have written to my employer asking for a reference.

What sort of things will they be asking my employer?

I put my salery down as £14,500pa based on the amount given on my final pay slip for 2011/12 (my pay slip actually stated TD Gross Pay £14,507.78). My employer is now saying that my actual wage is lower than this (£11,232). I have a 2nd employment which gives me an additional £12,000pa but the rate of pay for this job (and number of hours) have only recently increased (at the end of March).

Is this likely to cause issues with my application?

Rest of the figures,

House price: £62,000 (50% Shared Ownership)
Deposit: £6,200
Mortgage Needed: £55.800

AIP was given for full amount by Leeds BS taking tax credits into account (with salary of £14,500) but Leeds have since said that they won't consider the tax credits because they're in joint names with my wife.

betmunch

Why did you put your salary down as £14,500 when it £11,232 plus overtime/bonus?

Also, why didnt your IFA correct this when he got your payslips?

Your application will be assessed on different information than that which was provided for the AIP so could mean a different decision.

The employers reference will ask basic salary and if any commission/bonus/overtime earnt by you, also simply things like how long have you been at the company and are you under notice of potential redundancy

gazfocus

betmunch wrote: »

Why did you put your salary down as £14,500 when it £11,232 plus overtime/bonus?

Also, why didnt your IFA correct this when he got your payslips?

Your application will be assessed on different information than that which was provided for the AIP so could mean a different decision.

The employers reference will ask basic salary and if any commission/bonus/overtime earnt by you, also simply things like how long have you been at the company and are you under notice of potential redundancy

Because I don't get paid overtime/bonus. All of my income on all of my wage slips is 'Basic Pay'. It's just that the hours I do differs from one week to the next but it's just now, my employer has decided to say I earn a set amount plus extra hours when needed.

Dave_Ham

Sure you will know this already, but your employer has done you no favours here.

Assuming it is all still within affordabilty, the only barrier your broker will need to overcome is the fact that it would appear you/IFA were trying to pull a flanker. Broker needs to be reassuring them and trying to communicate over the phone with them..

Fingers crossed.

betmunch

gazfocus wrote: »

Because I don't get paid overtime/bonus. All of my income on all of my wage slips is 'Basic Pay'. It's just that the hours I do differs from one week to the next but it's just now, my employer has decided to say I earn a set amount plus extra hours when needed.

Thats pretty harsh for them to change the terms. What does it say in your contract?

If it just gives an hourly rate I would ask the employer to put your average weekly hours ratehr than saying its basic hours plus overtime at the same rate.

Hopefully it will still go through, good luck

gazfocus

Dave_Ham wrote: »

Sure you will know this already, but your employer has done you no favours here.

Assuming it is all still within affordabilty, the only barrier your broker will need to overcome is the fact that it would appear you/IFA were trying to pull a flanker. Broker needs to be reassuring them and trying to communicate over the phone with them..

Fingers crossed.

Thanks Dave. Yeah I know they've done me no favours and a bit annoyed with them about it to be honest.

I haven't discussed it with my IFA yet because I want to see what my employer says first. Is it worth making my IFA aware that it may be an issue?

Will the fact that I have given the amount from my final pay slip help to convince them that I wasnt trying to pull a fast one, seeing as all wage slips were 'Basic rate' only?

betmunch wrote: »

Thats pretty harsh for them to change the terms. What does it say in your contract?

If it just gives an hourly rate I would ask the employer to put your average weekly hours ratehr than saying its basic hours plus overtime at the same rate.

Hopefully it will still go through, good luck

Thanks Betmunch. I agree but the main problem is that despite the fact I've been there since 2010 I've never actually seen my contract. My employer is now saying that I'm employed for 3 days a week plus extra hours as needed.

I'm not sure if my employer has already done the reference (not sure when it was requested) but I'm not in until tomorrow.

Conrad

Little Building Societies habitually request such references, another little hump in the road to catch out the inexperienced brokers (IFA's are not mortgage specialists).

Thrugelmir

gazfocus wrote: »

I agree but the main problem is that despite the fact I've been there since 2010 I've never actually seen my contract. My employer is now saying that I'm employed for 3 days a week plus extra hours as needed.

Your terms of employment may have been detailed in your original offer letter for the job.

gazfocus

Thrugelmir wrote: »

Your terms of employment may have been detailed in your original offer letter for the job.

Haven't had one of those either. The job offer was informal because the guy I work for in my other employment is friends with this guy so it was just a case of 'start on Monday'. My hours have changed several times (at one point I was working for them full time to cover long term sickness, another time I was working 4 days a week). Its very difficult to know work out what my actual salary is which is why I went with the total to date figure on my final pay slip for 2011/12.

fimonkey

Might be worth writing to the mortgage company with this info and include a copy of your P60? Basically be upfront and try to anticipate what they will ask you and why. Will they want a copy of your employment contract for instance which will specify your hours (in which case get one written up).