Sick Pay disrupting BTL remortgage – advice please!

GirlBoardingSchool · 6 September 2016 at 12:18PM

This July, I applied to remortgage from residential to BTL repayment (large lender) for about £170,000 LTV 60%; it was approved, valuation done and underwritten. Before completion, I reapplied for additional borrowing of £30,000 for home improvements, moving the LTV to 67%.

When the advisor updated and resubmitted my application – he said that officially no additional evidence was required but the underwriter may ask for payslips covering the most recent 2 months that had elapsed since the prior approval.

The issue is that my employer has accidentally deducted 50% of my Aug pay for statutory sick pay (timesheet admin error). My employer will fix it and will pay me the difference via a manual payment. However payroll has said that they cannot reproduce a new August payslip that shows my full pay due to IT system reporting restrictions. Also, I imagine it is possible that the incorrect August sick pay has already been reported to HMRC.

My question is, what acceptable evidence can I ask my employer to produce to explain the August sick pay deduction error? E.g. A signed letter on headed paper stating there was an error that has been rectified? Will this error scare the bank and decline my application?

Any advice GREATLY appreciated. Thank you.

GirlBoardingSchool · 8 September 2016 at 5:52PM

Hi there, just checking if anyone in the community has a view on this? Many Thanks.

ACG · 8 September 2016 at 6:08PM

Is there a problem supplying the payslip that has the sick pay on?

GirlBoardingSchool · 12 September 2016 at 6:15PM

Hi ACG, thanks for replying. I have the erronous payslip and can submit it if asked. Since I last posted my HR have reversed the sick pay error and paid my full salary. My issue is that Payroll say they cannot do a new correct August payslip that does not show the sick pay.

My question is what can I ask my HR to produce to explain the error? If my HR produce a letter explaining their payroll error - is this likely to be accepted?

xyz123 · 12 September 2016 at 6:50PM

If you can produce earlier full pay payslips supported by a letter on company letterhead I am sure any reasonable lander will accept.

ACG · 12 September 2016 at 7:10PM

If this was me applying for a client, I would just called the lender before applying explain, see what they would want (if anything) and then include that in the application documents sent over to them.