Payslips matching bank payments for Mortgage

Victory7s

Hi all,

My name's Joe and I've got a question regarding payslips matching bank payments for when trying to get a mortgage.

To give you a bit of background - I'm 23, run a company and listed as a Director (not a shareholder, this will be crucial later). Because I'm not a shareholder, don't take dividends and the only form of payment is through PAYE, for all intents and purposes I'm just an employee. The reason why I'm listed as a director is because the main shareholders live in Ireland and it's very difficult to speak to banks, do important tasks, etc. when the MD & main shareholders don't live in the UK.

Now last year I attempted to get a mortgage (albeit, quite naively) and wasn't aware that my payslips had to match the amounts being paid into my account. Seems silly looking back, but now I know. Over the past couple of months the company has been doing well-enough that I'm able to pay myself the correct amount through PAYE, and on-time(ish).

Now I say (ish) because this month gone my payslip said I was to be paid on Thursday 28th of February, and I've not been able to pay myself until Friday 01st of March (as this is when our customers pay us).

The amount is correct, to the pence, but obviously the payment is I suppose 1-day late. Is this going to affect my chance of getting a mortgage when I apply next month?

Many thanks,

Joe

Mrs36

Why didn't the amounts match? Surely to a mortgage lender this would look suspicious? I think that would be a bigger issue than the payment dates.

I wouldn't think a day here or there would matter in terms of the payment date, it could be a bank that doesn't use the faster payments service, for example.

Victory7s

Mrs36 wrote: »

Why didn't the amounts match? Surely to a mortgage lender this would look suspicious? I think that would be a bigger issue than the payment dates.

I wouldn't think a day here or there would matter in terms of the payment date, it could be a bank that doesn't use the faster payments service, for example.

That's why I wasn't successful last year. I used a broker, and they realised that it wasn't matching the payslips I was receiving (because the company was still relatively new and wasn't quite earning enough money to pay me every month). We didn't even attempt to send my application off to a lender as they knew it would be rejected.

Since then we've obviously taken on more work, and I've been able over the past couple of months to pay myself the exact amount on the exact date (apart from yesterday / today).

Mrs36

I don't understand why your payslips didn't reflect your actual earnings. Surely that would look to a lender like you were over-inflating your earnings?

ACG

Your question would not cause me any concern.

However, from what you have said I think there is more to this than you are letting on and that would give me concern if this hit my desk as a broker or underwriter.

I could be completely wrong, but I think you either have been a shareholder or you will be a shareholder once the dust settles with your mortgage.

Victory7s

Mrs36 wrote: »

I don't understand why your payslips didn't reflect your actual earnings. Surely that would look to a lender like you were over-inflating your earnings?

ACG wrote: »

Your question would not cause me any concern.

However, from what you have said I think there is more to this than you are letting on and that would give me concern if this hit my desk as a broker or underwriter.

I could be completely wrong, but I think you either have been a shareholder or you will be a shareholder once the dust settles with your mortgage.

The middle of last year my boss increased my salary, great. However there hasn't always been the money there to pay me. I work 40-hours a week, sometimes more given the fact that I basically run the company, but there wasn't always the money there (back when I first started looking for a mortgage) to pay me the 40-hours I worked. I had to, back then, prioritise paying the staff underneath me, and any other invoices, before paying myself.

The payslips aren't the issue. They reflect the 40-hour working week. It's just the bank statements that don't match as I wasn't always paid in full.

I'm still owed that money. The payslips are there, the hours are worked, but because we weren't enough enough as a company back then I wasn't able to always be paid in full.

My boss has offered me a shareholding percentage however I declined and I'm not currently interested. I've never been a shareholder of the company.

Mrs36

Surely that is also misleading from a tax point of view? I.e you have paid tax on an incorrect salary? I understand the reasons, from what you've posted but surely falsifying payslips is not the right way to run a business.

Mrs36

Sorry, that's irrelevant to your post really, but I am agog that you don't see inaccurate payslips as a problem.

Victory7s

Mrs36 wrote: »

Surely that is also misleading from a tax point of view? I.e you have paid tax on an incorrect salary? I understand the reasons, from what you've posted but surely falsifying payslips is not the right way to run a business.

I've never really thought about it. Yes, you're probably right. Like I mentioned, for all intents and purposes I'm just an employee - I run the day-to-day side of things and I suppose I've just justified the not being paid on time due to us being a start-up and seeing progression.

Obviously that is no longer the case, since I'm not paid the correct amount and on time, but I'm still owe a relatively large sum of money from back when this was the case.

Mrs36

I would make it a priority to see you be paid what you are due. It is admirable that you've obviously worked hard and prioritised your employees but I would be concerned that you've left yourself at risk that your bosses could sack you and claim that money wasn't due (obviously worst case scenario and I'm at risk of sounding like your mother now, sorry).

Victory7s

Mrs36 wrote: »

I would make it a priority to see you be paid what you are due. It is admirable that you've obviously worked hard and prioritised your employees but I would be concerned that you've left yourself at risk that your bosses could sack you and claim that money wasn't due (obviously worst case scenario and I'm at risk of sounding like your mother now, sorry).

Haha, my family and friends have often said the same thing (my mother included :rotfl:). To be quite frank, and at risk of sounded big headed, without me the company wouldn't run / operated. More so because they don't live in the UK. Now we're in a good place earning good money - and if my bosses / main shareholders wanted to take a wage - they would need to look out for me to ensure that the business continues to operate efficiently. Step 1 in that process is securing my mortgage. After that, I'll work with them to re-pay me the money owed and in return I'll make sure the business runs smoothly so that they can take a small cut, of in essence, mine and my staffs hard work.