quick question regarding Mortgage and bank statements

nsoufiani

Hello everyone! First time poster and hopefully this will be the first of many.

So just to give you a quick overview, I work as an engineer for my father and I get pay slips every month and it is all legal, taxes are paid and everything. On my pay slips you can see that I get a certain amount every month. The thing is that this certain amount is not put into my account in one go. I would get part of that amount in my bank account one day, a week later I would get paid the other part in cash or I would get the rest in cash over a few days. My main point is that I do not get all of my net income in 1 day. It is spread out over 1-2 weeks. My taxes are paid though and everything is legit.

My bank statements obviously reflect this scenario. Now here is the question....if I am applying for a mortgage and the lender asks me for my bank statement, will they raise an issue in regards to this? Would they ask why is your pay slip not matching your bank statement? Would my credit rating be tarnished because of this? Keep in mind that I am a first time buyer so I am guessing they will be more strict with me than with existing home owners. I am afraid that I could pay a deposit and have that all lost because the lender decides that I am very risky due to my bank statement. I mean its not like my bank account shows nothing. I have enough to pay my mortgage every month...Well if anyone could enlighten me then I would be extremely grateful.
Thanks

lee111s

Shouldn't be a problem if you explain at the time of application. As long as the amount the payslip says matches the anount going in for that month it shoul be OK.

Thrugelmir

Would obviously arise suspicion. Particularly as there's a cash element as well. The thought may well be that the payslips have been "manufactured". So sight of the original year end P60 may be requested. In order to verify the figures.

Dave_Ham

It will absolutely be a problem as from a lenders perspective it looks dodgy.

Add in a family business and this will be tricky indeed.

I would dig out your last 3 years P60's as highly likely to require this and if you have only started this job recently you have almost no chance.

There are not many lenders if any that are going to give a first time buyer a mortgage without seeing a bank statement.

nsoufiani

Thank you everyone for your replies. Got a variety of answers here. I certainly hope there will not be a problem but I risk losing my deposit if I pay this and later find that the lender has refused to give me a mortgage based on my bank statements. Also, I don't always deposit the cash straight into my bank account...I know, that is very stupid of me...
Of course I will be asked for my bank statements 100% since I am a first time buyer and banks are now under more pressure to be more responsible. I have only received these pay slips over the last 3 months so I cannot show any more than that. It is highly risky for sure...if I could get paid properly, as in my net income paid into my account per month in one lump sump, then this would not be an issue...I could get the mortgage I'm after...this is the only thing holding me back...I think it is perhaps time to change jobs...

Jimbo1976

You won't lose your house deposit as you would not hand over your exchange money until your have a mortgage offer letter. The lender does not issue a mortgage offer letter until it is happy to lend to you.

You may run the risk of losing any up front mortgage fees, eg booking, application fees etc

nsoufiani

Jimbo1976 wrote: »

You won't lose your house deposit as you would not hand over your exchange money until your have a mortgage offer letter. The lender does not issue a mortgage offer letter until it is happy to lend to you.

You may run the risk of losing any up front mortgage fees, eg booking, application fees etc

aah I see. I thought that I could lose my deposit which is the reason why I could not go through with the house I wanted to purchase. The thought of losing my deposit scared me like nothing else so I walked away from the house...I wish I could have sat down and thought about it a bit...anyway, I thought I was taking a huge risk...
Perhaps I should still wait a few months and ask to get paid properly so that everything can go as smoothly as possible...

Building_Surveyor

why are you paid that way in the first place? doesn't really make any sense

nsoufiani

Building_Surveyor wrote: »

why are you paid that way in the first place? doesn't really make any sense

Well I agree that it sounds strange. It's just that our engineering business is not going smoothly and we get little jobs that are worth little. So we don't get much work and the work we get is worth little. I have told my father endlessly that we need to stop subjecting ourselves to these horrible jobs and either move on or get bigger projects in. Unfortunately we only have 3 people in our company which include me, my father and 1 other. our business really does not generate much cash...I doubt my father has enough to even pay himself at the end and I have told him that we need to stop this type of work but I suppose he doesn't know what else to do and I don't think he would want to work for someone.
So that's why I get paid like I do. It's when my father gets payments from the clients that he gives it either to me or my co worker.

Building_Surveyor

nsoufiani wrote: »

Well I agree that it sounds strange. It's just that our engineering business is not going smoothly and we get little jobs that are worth little. So we don't get much work and the work we get is worth little. I have told my father endlessly that we need to stop subjecting ourselves to these horrible jobs and either move on or get bigger projects in. Unfortunately we only have 3 people in our company which include me, my father and 1 other. our business really does not generate much cash...I doubt my father has enough to even pay himself at the end and I have told him that we need to stop this type of work but I suppose he doesn't know what else to do and I don't think he would want to work for someone.
So that's why I get paid like I do. It's when my father gets payments from the clients that he gives it either to me or my co worker.

in that case maybe your plan sounds a bit too risky from a personal perspective. Do you see the company accounts? are you aware of how well financially the business is doing? do you see your income as secure? How long has the business been going?