Mortgage lender employment checks

RyanT1992

Hi all,

I just wondered - how often (if ever) do lenders physically call/contact an employer to verify employment, after a mortgage offer has been made? I've heard that sometimes they will check post-exchange of contracts, just to see if nothing has changed in circumstances.

HSBC in particular.

I only ask, as my partner's bosses will be on holiday for a while coming up soon, with little/no access to technology, so I don't want the post-mortgage offer stage to be dramatically slowed down by the fact the bank can't get hold of my partner's employers to check she still works there!

Thanks!

MovingForwards

With mainstream lenders employment checks are payslips (showing company details, employee name, employee number etc) and bank statements (showing the exact money on the payslip has gone into the account). 

Specialist lenders (eg sub-prime) email before even making an offer, this is also backed up with payslips and bank statements.

You're overthinking it.

RyanT1992

Thanks, appreciate it! Just nervous about some checks happening after exchange of contracts that could then delay the move! 

PK_London

I had a mortgage offer made by HSBC lately when I started my new job. I submitted my 3 months of payslips and bank statements. However a clause in my contract states they only pay 5 sick days per year and nothing in the first 6 months which is the period Im in. I had to take off a week sick this month and I will complete next months. I guess like all buyers I am just being paranoid but is there any likelihood HSBC will ask for my payslips or bank statements again before completion and will a week of lost earnings cause any problems with their lending?

K_S

@pk_london I do a lot of HSBC resi mortgages and they've never asked for my clients' updated payslips or bank statements prior to completion. I can't say it never happens but I would say the likelihood is extremely low.

If they did ask and the basic on the latest payslip was lower than the application income, they will most likely ask for an explanation.

PK_London

K_S said:

@pk_london I do a lot of HSBC resi mortgages and they've never asked for my clients' updated payslips or bank statements prior to completion. I can't say it never happens but I would say the likelihood is extremely low.

If they did ask and the basic on the latest payslip was lower than the application income, they will most likely ask for an explanation.

Thank you. That is good to know. My broker said exactly the same thing. I am just being super cautious (and super paranoid) given how stressful this process is!