Mortgage declined due to missed wage payment

marmage

Hi, our joint mortgage was declined due to partner missing wage payments in July and August (due to covid related funding), which he then got back paid for in Sept.
Prior to it being declined we had actually received a call from the broker saying our mortgage was due to be approved and just awaiting final paperwork, then the lender misunderstood partner is self-employed (which he isn't) and requested bank statements for the latest 3 months. Unfortunately within the latest 3 mths the late wage payments occured. The offer would have gone through had they not misunderstood his employment status and requested the latest 3 months, as the previous 3 months (Apr/May/Jun) were all good. 

We are waiting on our broker to do some research to find a new lender next week. He said there are lenders that ask for 1 months payslip and bank statements. We do have ALL payslips for ALL months, but actual wages were missed in my partner's account for the month of July/August. Does anyone have recent experience which lender we may have a chance of being approved with in this scenario or can give us any insight on this. We have enough savings to cover us for a whole years mortgage payments, but were told this makes no difference to the lender assessing. Wondering if it might help to dump those savings into the transaction and borrow less - Would reducing our loan to value from 59% to 50% help things at all (rather than hold on to those savings we could throw more into the deposit). 

Starting to feel we may not pull through after all, so any thoughts would be appreciated.

Thanks in advance.

aoleks

you will need to wait until you have September's payslip including a record on your bank statement.

marmage

aoleks said:

you will need to wait until you have September's payslip including a record on your bank statement.

Thank you aoleks. Our broker said the same, therefore not looking at it until next week. What is the reason for this? 

kingstreet

A broker submitting an application where he doesn't have bank statements (or chose to ignore them) to corroborate payslips is a fool. This is something you should resolve pre-application.

aoleks

that's how they check your income, basically and it's already extremely easy, I would ask for at least 6 months of consistent bank statements/payslips if I was a bank. that they do it with one is a wonder for me.

they just want to cross references that the numbers match and have evidence that your income was verified, in case of an audit.

Thrugelmir

marmage said:

 our joint mortgage was declined due to partner missing wage payments in July and August (due to covid related funding), which he then got back paid for in Sept.

That's a huge red flag waving from the underwriters perspective.