What info does Mortgage provider ask when contacting HMRC

Murray1980

Hi guys,

Bit of an unusual question but does anyone know what infornation a mortgage provider/underwriter requests from HMRC when trying to verify a borrowers earnings?

Is it a simple earnings to date total, an earnings (and tax deducted?) breakdown week by week (or month by month) or something else??

Thanks in advance.

Westminster

If you are employed, I would anticipate the lender asking you for payslips and your last P60, if self-employed then 3 years tax returns.

amnblog

Murray1980 wrote: »

Hi guys,

Bit of an unusual question but does anyone know what infornation a mortgage provider/underwriter requests from HMRC when trying to verify a borrowers earnings?

Is it a simple earnings to date total, an earnings (and tax deducted?) breakdown week by week (or month by month) or something else??

Thanks in advance.

Why do you ask Murray?

wannahouse

doesn't one usually ask a question, to find out the answer?

Westminster

To be fair - on the face of it, it appears like a question from someone who is hoping something will not be noticed and is an intriguing question.

Murray1980

I'm not self employed or a company director, I'm just a regular employee and have already provided last 3 months payslips, bank statements and last years P60.

My employer for the first 6 months of this year has been paying my monthly salary, deducting the relevant tax etc and giving me a monthly payslip but it has not been done using HMRC's "real time information" system.

My mortgage is due to complete any day and basically the only thing left to do is for my provider to confirm my earnings with HMRC. If they ask my earnings for last year that's fine as I complete a tax return and my declared earnings to my provider tie up with HMRC. But if they ask for this years earnings to date which HMRC should have via this RTI system they will be miles off as my employer has not submitted this information yet.

Thanks in advance.

Penelopa.Pitstop

I'm not sure lender would ask HMRC to confirm income if they have payslips and P60s and if HMRC was at liberty to give this information to lender.

Murray1980

I've signed a declaration stating I agree with my mortgage lender contacting HMRC so they must be allowed. I assumed it was standard practice nowadays?


I've nothing to hide and my earnings are what they are but my worry is that if my employer hasn't been submitting real time information to HMRC month by month for the current tax year, my lender is simply going to say we cant verify that you earn what you say you do.

Senior_Paper_Monitor

Provided you have nor declared any massive increase in earnings (which therefore do not show via RTI) since last year (P60) then I would not expect an issue.


Many small companies have not caught up with RTI yet -


" HMRC has announced that the introduction of automatic penalties for late RTI submissions will be delayed another five months for small employers.

Under the revised timetable announced back in February, automatic penalties were due to start from 6 October. This date will still apply for companies that employ 50 or more people, but smaller companies will get an extra five months until the automated regime starts to bite from 6 March 2015. "


..... although there is not long before penalties will start to apply, so I suggest that most lenders will be familiar with that.

Murray1980

Ahhh then that will be the problem - my earning have increased by c.60% in the new tax year!!

Senior_Paper_Monitor

In which case it may do - bear in mind that not all cases are checked with HMRC (they charge the lenders for this service), however with a rise of this sort I would consider it likely.


I would expect the lender to come back for extended period of bank statements and payslips (probably plus direct employer's reference) if they get a 'no info' response from HMRC.


Is this a new job - or promotion ?