Work bonus delayed - Mortgage amount affected!

Colt24

Hi Guy's,

First time poster hear, hope you are all well!

Cut a long story short, my mortgage application has been submitted, however, Nat West has requested proof of bonus payments. Nat West are well above all lenders on what they lend with bonus payments, as they can take 100% of it if they can see it is guaranteed.

I have already received written confirmation that we are getting a bonus this year, however, this is dependant on accounts being done and could take many more months. Originally, the bonus should have been paid in March 2017!

I have contacted head of HR explaining my current situation however, they weren't able to tell me how much I will get this year, neither can they tell me when it will be paid....HR did, however, provide me with a letter which states that I will be receiving a bonus this year for supporting evidence.

Nat West has since rejected the letter from my company and I'm at risk of losing additional money which is vital for the purchase. From a lenders point of view, without a figure it will be difficult for any Lender to assess correctly.

I'm at my wits' end and I don't know how I can approach this with my company. I have already forked up a lot of money for Solicitor and valuation fees. I don't know whether a letter which states that the bonus will be a minimum of a figure, up to a maximum, if this may help the situation.

Any advice would be much appreciated.

Thanks guy's,

Colt24

Bump - Can anyone here suggest anything?

nbinblack

Can you provide them with pay statements with previous bonus payments on?

ACG

I would be surprised if Natwest will accept a reference stating it will be at least £X - but I stand to be corrected.

You should not have spent any money on solicitors yet, there is no need to spend money on solicitors until your Mortgage offer has been issued.

Can you extend the term of the Mortgage? That may increase the lending amount. I am wondering how you/Natwest checked affordability using a bonus that has not been paid and you have no idea how much it will be. It asks about your bonuses, what figure did you put in? Where this figure come from?

Colt24

The bonus amount was produced by another employee as a rough indication on the size of the bonus pot - A reliable source. I informed my mortgage adviser that this wasn't the official amount and that I was still awaiting confirmation. roll on 5 months later and the bonus is still delayed!

Admittedly, perhaps I shouldn't have continued with my application knowing that I couldn't provide sufficient evidence, however, I have received constant assurances that the bonus was around the corner.

I did receive a bonus last year 2016, however, the amount was for a lot less.

Thrugelmir

Colt24 wrote: »

The bonus amount was produced by another employee as a rough indication on the size of the bonus pot - A reliable source.

As a judge would say. Hearsay. Not substantive evidence.

however, this is dependant on accounts being done and could take many more months. Originally, the bonus should have been paid in March 2017!

Accounts don't take many months to produce. Your Company management / board will have a good indication as to the last years financial results. Perhaps the issue is more of a cash flow one. As the ability to pay bonuses maybe more of an issue than the fact that one is due.

Colt24

Do you think I should contact HR again? I'm really not sure how to tackle this as it leaves me in a slight predicament. It's extremely frustrating that management have confirmed that the bonus is coming, but I can't use this towards my mortgage due to the delay.

Thrugelmir wrote: »

As a judge would say. Hearsay. Not substantive evidence.



Accounts don't take many months to produce. Your Company management / board will have a good indication as to the last years financial results. Perhaps the issue is more of a cash flow one. As the ability to pay bonuses maybe more of an issue than the fact that one is due.

ACG

Did you use a broker or do it in branch?
The application should never have been submitted in the first place.

I would argue that you can probably get the valuation fee back whoever submitted the application, I am not sure about the solicitors costs as there was no need to incur costs from them until the offer was issued.

But realistically, without that payslip - Natwest are unlikely to back down.

OneInTheHat

you need to contact HR. I write a lot of these types of letters for employees.

Hand on heart though, it is sounding a lot less like a guaranteed bonus to me if I'm honest. The way the company is going about it is going to make the banks nervous. And if HR won't write a letter saying that you are due X and it will be paid by Y date then I don't think the banks will be happy.

A range might work but it really needs a committed date otherwise it is honestly starting to sound like this bonus is not guaranteed at all.

colt24_2

My company has finally confirmed in writing that my bonus will be between X and Y. Natwest was happy with this letter, however, obviously opted for the lower amount which still creates a shortfall in terms of what I can borrow.


I have saved a considerable amount of money over 6 years and as a first-time buyer, I'm already at a disadvantage doing this solo.


Anyway..Thank you all for your advice. I will keep you posted if anything else changes.


Cheers,

OneInTheHat wrote: »

you need to contact HR. I write a lot of these types of letters for employees.

Hand on heart though, it is sounding a lot less like a guaranteed bonus to me if I'm honest. The way the company is going about it is going to make the banks nervous. And if HR won't write a letter saying that you are due X and it will be paid by Y date then I don't think the banks will be happy.

A range might work but it really needs a committed date otherwise it is honestly starting to sound like this bonus is not guaranteed at all.

minimike2

ACG wrote: »

Did you use a broker or do it in branch?
The application should never have been submitted in the first place.

^ This..... How has you application been submitted without having the correct proof of income in the first place?

Sounds like you have got way ahead of yourself.

The issue with your bonus is exactly why lenders are cautious about how they treat them. Maybe take it as a sign that maybe you should be looking at what is affordable without taking it into account?

Easy to get into the emotional trap and say "oh yeah but I will always get it blah blah", but what happens if it doesn't come? What happens if it gets reduced? What happens if you lost that job? Variable pay is just that. Variable. You are already seeing the issues around it.

You can either wait until you are paid it, or re-evaluate your buying power. There is no point trying to look at ways around things. It either is or it isn't.