Paid in Cash how does this affect mortgage

Trixabell

Hi

I'm asking on behalf of my friend. She works and gets paid Cash. She has wage slips, pays tax etc so all above board but doesn't pay all her wage into bank as pays shopping etc cash. How does this affect her mortgage chances with the new legislation?

Any advice would be greatly appreciated

Thrugelmir

Able to provide P60's? Employer happy to provide references?

McKneff

It wont be a problem if everything is above board so tell her to stop worrying.

Trixabell

P60 she has but with old salary on as she is now assistant manager. Employer would def provide references though. She's worked there for about 10 years

MortgageMamma

does your friend actually have a bank account with direct debits going out etc? i.e. does she go to the bank and pay in money so her bills come out?

Trixabell

Yes she pays some of her wage in to cover direct debits etc but it's not the exact figure shown on her wage slip. Maintenance payments and tax credits get paid direct into account

McKneff

like I say, it doesnt matter what she is paying into the bank from her Salary, it wouldnt matter even if she paid nothing in.

She will, by law, have to be given a P60 during May, outlining all her salary for the previous year.

Thats it, and they cannot refuse to give her it. There will also be a copy of this sent to HMRC by the employer so again, tell her to stop worrying.

amnblog

In spite of the comments above, this will be tricky.

The Lender may ask the Accountant of the business to confirm the income.

Your friend should be using a broker.