P60 asked for to lower mortgage rates?

I had a mortgage approved by Barclays back in August at 6.2% approx. 

Since then I have asked the broker to lower the interest rate as the rates have come down and now it’s at 5.6% approx. Barclays have lowered my rates 5 times I think. 

Last week it dropped again to 5.44% so I asked the broker to request the rates are lowered again. 

Now Barclays have asked for 2 years of P60s. This is a problem as I wasn’t working last year due to the pandemic. And I did make this clear on my application. 

They have also asked for June payslip which they already had before…. I have uploaded my current P60 which shows 6 months of my current job and all my payslips since June to the brokers site. 

But I’m worried that as I don’t have 2 years P60s it will be a problem. 

They didn’t ask for this any of the other 5 times we lowered the rates and I’m hoping to exchange contracts next week on this. 

Can anyone share any experience or knowledge on this please? Also why are they asking for this information when they already approved it? Thanks. 

Comments

  • kingstreet
    kingstreet Posts: 38,615
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    If the previous documentation has gone "stale" a lender can request updates if a material change is made. Not knowing your particular case, no-one can say why two P60s are required but that would typically involve the use of bonuses or commission earnings to raise borrowing power?

    For the self-employed, 5 October marks the point the latest year for evidence of income changes as the previous year-end 5 April, becomes older than 18 months, so where 2021/22 would have been latest year on 4 October, on 5 October you need 2022/23 documents. Your situation may be similar.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • Tr33house
    Tr33house Posts: 34
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    edited 9 November 2023 at 12:05PM
    I don’t have 2 P60s and I was not self-employed prior to Sept 22 - I was unemployed due to Covid. 

    Nothing has changed - my credit record has improved - and I am still employed. 

    I do have a bonus but it wasn’t awarded in the previous P60 half-year either but shows in my payslips. 

    What will they say as I do not have a P60 for the previous year? 
  • Tr33house said:
    I don’t have 2 P60s and I was not self-employed prior to Sept 22 - I was unemployed due to Covid. 

    Nothing has changed - my credit record has improved - and I am still employed. 

    I do have a bonus but it wasn’t awarded in the previous P60 half-year either but shows in my payslips. 

    What will they say as I do not have a P60 for the previous year? 
    They tend to use P60s for bonuses as they will take the 2 year average. If you don't have two years then they will not included it in affordability calculations.
  • Zoe02
    Zoe02 Posts: 434
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    Are you currently with Barclays? Mine lets me do it myself online. Rates have dropped a bit now selected 2 years fixed without product fees at around 5.54%.

    Strange they are asking for documents now, but if you are unable to provide might have to leave it as it is 
  • Tr33house
    Tr33house Posts: 34
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    edited 10 November 2023 at 11:38AM
    Thanks for the responses. The Broker told me it is to check my bonus - however as I said earlier I have only had one bonus and it was after the 6-months I worked on the P60 so it isn’t shown on there anyway. 

    I’m “only” after £115,000 mortgage and the broker says my salary covers the affordability. In fact as I said the lower rates save me around £60 already over the original rate. 

    I’m confused slightly about where I stand with the mortgage while they are reviewing it. Do I still have a mortgage? Is it just at the current rate? Or does asking for a lower rate mean that I don’t have a mortgage unless they approve the new rate?

    Update: The broker has said today that as the new rate is a change that I no longer have an offer until they accept again based on my request. She said that Barclays don’t need the P60 as my salary covers it anyway and they are looking to get the request removed. I’m unclear what that means. Why not just tell Barclays I wasn’t working the previous year so I don’t have a second P60? 
  • An update for anyone who wants one - the broker had Barclays remove the need for the P60 and they approved the rate change a few days later.


  • BikingBud
    BikingBud Posts: 1,650
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    And perhaps the most important question did you exchange and complete without further hassle?

    Mortgage: £200,000 (Sep 2021)                                      Initial MF date: Sep 2031 

    Int Rate:
    1.19% fixed until Nov 2026 (8.5% follow on rate?)
    Cap+Int Repaid: £65100 (32%)  £80,704 (40%) £82468 (40.48%)£89507 (43%) £91267 (44.7%) £98,309 (48.02%)

    Target MF date: Nov 2026  Current MF date: Dec 2029,  Nov 2029, Apr 2029, May 2029                                    
    Target Int Saving: £25,561 Current Int Saved: £12,350,   £13,421,  £16,991, £17,989, £18,699, £20,495

    Overpayments suspended and surplus cash currently being diverted to high interest savings.
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