Does my employer have to provide a reference?

Snuggles

Have you explained the situation to your employer and how crucial this is? Have they given a reason for refusing to provide it?

MortgageMeee

I'm getting sarky with people posting irrelevant things purely to try and show off how smart and informed they are. I have a mortgage lender - I obviously don't need a broker to find me one. I've submitted a formal mortgage application - I obviously don't need comments about other forms of proof of income. If you don't know the answer to the question then don't answer. If you know the answer to a question that wasn't asked then why bring it up? 
@Snuggles Yes, I expressed very clearly to them how crucial it is. The reason for refusing keeps changing. Firstly they said it was because I might not be kept on because of Covid, I pointed out that they've renewed my contract and made no cut backs due to Covid and that they've never mentioned anything about anyone's employment being insecure - they then said "well, I don't know what the situation is but you would have been contacted if you're not being kept on". They then said that they can't provide one because of GDPR. They then said that they couldn't confirm my income (which is paid monthly on the 1st) because bank holidays and/or transactional delays might mean the payment dates aren't exact. They seem to just be avoiding it. 
I've asked them to provide a statement that they're unwilling to provide a reference so I can supply that to my lender but they've also refused to provide that.

achysTop

I'm guessing you're a funded PhD student from your description of the income type?

I had absolutely no luck trying to get a mortgage while I was in a funded PhD role, partly because the funding is for a fixed term (3 - 3.5 years) and a lot of lenders have rules around fixed term contracts which a PhD contract can't fulfil. They will be concerned that you won't be able to find a job at the end of the funding term and if you're planning to go into academia they're right to be concerned.

MortgageMeee

@achysTop Thanks for this. My lender absolutely, 100%, completely and totally accepts my income. They require, as part of their application process, to contact an employer reference to confirm income. They need this for me and my husband even though he has a very standard, employed, normal job. My income type does not affect this. My income type is not an issue in any way, shape or form. I'm not in academia - but I do resonate with your frustration. 

Thrugelmir

MortgageMeee said:

My employer is refusing to provide a reference and I can't get a mortgage without one. Surely this can't be allowed?

Lenders have every right to set the terms on which they conduct their business. Likewise your employer may not be in a position to confirm what the lender has asked in terms of providing a suitable reference. Many employers have a policy of not providing mortgage references. 

Snuggles

MortgageMeee said:

@Snuggles Yes, I expressed very clearly to them how crucial it is. The reason for refusing keeps changing. Firstly they said it was because I might not be kept on because of Covid, I pointed out that they've renewed my contract and made no cut backs due to Covid and that they've never mentioned anything about anyone's employment being insecure - they then said "well, I don't know what the situation is but you would have been contacted if you're not being kept on". They then said that they can't provide one because of GDPR. They then said that they couldn't confirm my income (which is paid monthly on the 1st) because bank holidays and/or transactional delays might mean the payment dates aren't exact. They seem to just be avoiding it. 
I've asked them to provide a statement that they're unwilling to provide a reference so I can supply that to my lender but they've also refused to provide that.

None of these reasons appear valid - presumably they are just being asked to confirm that you are currently employed by them and how much they pay you, not to give any guarantee about the future. Seems entirely unreasonable of them to refuse but unfortunately they aren't under any obligation to comply.

I think all you can do is discuss the situation with the lender and see if there is another way forward. Good luck with it, must be very frustrating.

MortgageMeee

@Thrugelmir Thank you for clarifying this. It is awfully frustrating though. Do you happen to know why employers would refuse to provide this? I can't see any logical reason to refuse.

elsien

MortgageMeee said:

@Thrugelmir Thank you for clarifying this. It is awfully frustrating though. Do you happen to know why employers would refuse to provide this? I can't see any logical reason to refuse.

Possibly because it's just easier to say no than to check any requirements and inadvertently break some rule or other. Or they just have a "computer says no" mentality.
Similar reasons as to why some employers either don't give employment references or just stick to employment dates and nothing more. It's just easier for them. 
Who have you been going to in your organisation - just wondering if there's a slightly more sympathetic line manager or someone who might be prepared to argue your case. Sometimes if there's no specific policy it comes down to who you are talking to. 

giraffe69

What is it with the attitude? If you want help then try being a bit more polite. Feel free to ignore information you don't want or even questions designed to assist in giving better advice.

Marvel1

MortgageMeee said:

1. The lender fully accepts my income. Bursary income is accepted by many lenders. Not at all relevant.
2. I did have a broker but found this lender by myself. Not at all relevant.
3. Yes I have a contract and proof of my income. The lender requires a reference person that they can contact to confirm my income - they've required the same thing for my husband who does a very standard job with standard income. This, again, it not relevant.
4. Bursary income is not taxed. I don't have PAYE, P60 or tax returns as a result. Even if I did - it's not relevant, they need to speak to a human being to confirm the paperwork that they've been supplied with.
What is it with this forum and people just completely avoiding what OP has actually asked and just thinking they know best? My lender says they need a point of contact from my employer in order to get a reference from them to confirm my income (they would require this regardless of what kind of income I had). What do people do if their employer just refuses to do this? Surely either the employer should be obliged to confirm/deny the income or the mortgage lender should demand this?

See first answer by Comms which is relevant.