Proof of Income for a mortgage

CleverLittleViper · 25 January 2020 at 11:19PM

Hi,

I just wanted some advice. I've got a mortgage in principle at the moment and have just put a reservation fee on a new build property which is now just waiting for me to get an official mortgage offer on.

However, I'm slightly concerned that I don't have enough supporting documents to prove my income. I've been in my job for well over a year now, but for most of that time, I've worked part-time. I've only just recently (this month) gone full-time permanently with the intention of getting a mortgage.

As the house was at risk of being sold, I knew I had to move faster than the time it would take me to collect 3 months of full-time payslips and bank statements and I reserved. I can produce 1 month's payslip showing my full-time earnings, an updated salary notification form from my employer showing my new, permanent salary and bank and payslips just to show that I do have regular income.

Would this be enough to get approval from a mortgage lender? I can get even more official documentation from my employer if necessary, but I'm really worried about it falling through just on lack of supporting evidence when I genuinely am earning this salary now and will be for good (until I get a pay rise in September).

Is there anything else I could provide as proof?

yksi · 25 January 2020 at 11:54PM

Yes, but get a broker. The place you got your MIP from is unlikely to approve you based on a single payslip. A good broker will know which lenders will lend based on one payslip.

LRmortgage · 26 January 2020 at 12:00AM

It depends on the lender that you have your agreement in principle with.

If I was your broker, I’d also want a copy of your new employment contract.

This can probably be solved, but a good broker would be helpful in your situation.

CleverLittleViper · 26 January 2020 at 12:06AM

Thank you. I have a broker at the moment and I'm just waiting for my "official" appointment to discuss this with them.

Do you think it's worth calling them up just to get advice about what to do about this? I'm really panicking that I'll be refused even though I can provide other proof of my income.

[Deleted User] · 26 January 2020 at 12:41AM

Personally I would be worried that you only went full time to get a mortgage approved and would drop back to part time as soon as you could.
I expect a few lenders to feel the same.

Although brokers work for you to get a mortgage, they also work for the lender to stop the presentation of income that has been inflated just to get a mortgage.

But if everything stacks up on plausibility there are plenty lenders who will work off a single payslip. There are some who are more prone to ignore year to date income figures on the payslips and there are ones that will ask loads of questions about the recent change.

CleverLittleViper · 26 January 2020 at 1:01AM

I can understand the reasoning behind that, but it still doesn't really stack up to reason, does it?

On a part-time wage, I couldn't afford to run a house. So why would I or anyone (in my shoes) go full-time just for the express purpose of getting a mortgage and then drop straight back to part-time hours when it's bound to put them into financial hardship?

I get that there will always be those that will do that- but I can provide a contract that states my change is absolutely permanent (I literally couldn't go back down to part-time hours now even if I begged).

[Deleted User] · 26 January 2020 at 1:17AM

Couple of examples:

You have a partner that will move in with you and pay the mortgage but has credit issues you are trying to hide. You get a full time job to get a mortgage and then reduce it after its been approved and partner has moved in

You are planning on going part time and getting a few lodgers. Lender won't take lodger income so you get a full time job for a few months to qualify for a mortgage

Is this your situation? Probably/definitely not.
Do people try pull the wool over brokers and lenders eyes to get what they want? Yes, all the time

I'm not accusing you of anything, but there is a lot of checks done on applicants by brokers and lenders that applicants aren't necessarily aware of. Usually because if a dodgy case gets through, we tend to get the blame for it and there are quite big consequences.

From what you've said I'm sure yours will be fine. Like I said, there are some high street lenders that don't look at ytd and work on latest payslip.

CleverLittleViper · 26 January 2020 at 1:51AM

Deleted_User wrote: »

Couple of examples:

You have a partner that will move in with you and pay the mortgage but has credit issues you are trying to hide. You get a full time job to get a mortgage and then reduce it after its been approved and partner has moved in

You are planning on going part time and getting a few lodgers. Lender won't take lodger income so you get a full time job for a few months to qualify for a mortgage

Is this your situation? Probably/definitely not.
Do people try pull the wool over brokers and lenders eyes to get what they want? Yes, all the time

I'm not accusing you of anything, but there is a lot of checks done on applicants by brokers and lenders that applicants aren't necessarily aware of. Usually because if a dodgy case gets through, we tend to get the blame for it and there are quite big consequences.

From what you've said I'm sure yours will be fine. Like I said, there are some high street lenders that don't look at ytd and work on latest payslip.

Thank you.

I can definitely understand that, and I can imagine that there are a lot of people who try to do that and it can be damaging if it is not caught.

Thrugelmir · 26 January 2020 at 4:06PM

CleverLittleViper wrote: »

So why would I or anyone (in my shoes) go full-time just for the express purpose of getting a mortgage and then drop straight back to part-time hours when it's bound to put them into financial hardship?

People try to pull all sorts of stunts (commit fraud) to achieve their goals. Lenders therefore have very black and white underwriting criteria. Micro managing every mortgage application is too time consuming and costly.

Proof of Income for a mortgage

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