Any underwriters/mortgage experts around? In desperate need of some advice

[OnTheBayou]

We are about to make an offer on a property, and have uploaded all our mortgage documents to the HSBC portal. Had the agreement in principle for a few weeks and there were no issues although slightly complicated because I'm on maternity leave and zero hours contract. Tonight hsbc have called me to say they need a recent (August) payslip from my work. I don't have one- no SMP paid and I'm not back to work till October.

Long story, employers started off paying me it but moved their UK registered address abroad (they're a foreign company and I work remotely from home), stopped voluntary employers NI contributions, stopped my SMP and so I had to claim for maternity allowance. I'm still employed by them and I'm an employee not a worker.

I provided my p60, letter from work stating when I'm going back, payslips from before maternity leave etc but they have said this isn't enough to prove I'm still employed there and it's possible the underwriters won't approve the full mortgage. On just my partners salary its not nearly enough and we'd lose the house.

They said we can try to apply for the full mortgage offer but won't know if they'll accept us without this document until then, at which point we'd lose money from solicitors fees etc and could all fall through. She is going to ask the underwriters directly if there's anything else I can provide for proof but didn't seem too optimistic.

Any ideas on what to do? Would other mortgage companies accept us without this recent payslip? Is there anything else we can provide? Sorry this is long and probably garbled but I'm getting married in a week as well as all this house stress and I feel like my head is going to explode 😩

Can you contact your company and request a payslip? I’m on maternity leave and receiving just maternity allowance but my work still sends me a payslip monthly just showing that I’m receiving £0.

At this point it might be worth going to a broker and see if they can recommend another provider.

We had issues with First Direct last year (same group) when they came back with £10k less on our mortgage offer than was on our AIP. This was despite the amounts being lower than our existing mortgage payments with them.

We swapped to a broker and they were fantastic. We had a new AIP within 24 hours and it took around 4 weeks to get our final decision but we knew we would definitely get it so was very reassuring.

I think it’s the zero hours contract here that will be the issue whenever you go as if banks will take them they are often evidenced with 3 months payslips.

Definitely get yourself straight to a broker and see what they can do. Do you have anyone who could be a guarantor?

Good luck!

I'm a mortgage broker (currently on maternity leave). I would definitely see a broker on this, as although HSBC may accept, there is also a very high chance they will decline based on not having enough evidence. If I'm honest, I'd be surprised if this case was accepted.

I'd have a chat with a broker. In my experience HSBC are quite strict and fairly inflexible (ex broker and HSBC mortgage customer) I think you should also give ACAS a ring about what your employer has done as it doesn't seem right (just imo I'm not an expert)

Aghh what a nightmare. I assume it's the zero hours thing that's a problem, though they really should have said that before issuing the AIP.

I imagine HSBC would have been unaware of the no pay slip situation prior to issuing the AIP?

The red flags on this case are -
Zero hours contract - HSBC require your 3 most recent payslips and your latest p60 as a minimum.This is to work out your average income, and to ensure your income is consistent

No payslip - If I was an underwriter, even with a letter from your employer I would assume that you were unemployed and the letter was fake and wouldn't be willing to put my job on the line to approve this mortgage.

Company restructure - even if you could gather enough evidence to prove all of the above correct, the company has had a restructure and you're on a zero hours contract, so there runs a risk that on you may not be offered the same amount of hours, if any on your return to work.

As a PP has mentioned, i would check with ACAS as to whether what they've done is correct. From my point of view, it appears that right now you're unemployed with an informal promise of being hired on a zero hours contract once you've finished your maternity leave. On this basis, you wouldn't be able to use your income toward a mortgage application.

They were aware as much as they could have been- repeatedly told them I was zero hours on maternity leave but maybe they didn't realise I'd have no payslip. The letter from my manager states the hours I'm going back Etc.

Unfortunately with the maternity leave stuff we went through it all with the relevant people and they were allowed to do what they did, it's shitty and unfair but it was allowed. I've been there for 6 years, definitely still employed there, have access to my work login etc. Will request a chat with my manager today to see if there's anything that can be done, maybe I can get some blank payslips like suggested above.

Hope they can sort something out.

If it doesn’t go ahead I’m very surprised you’ve even got this far if you’ve told them up front about your zero hour contract and they’ve still credit scored you and submitted the application - which could result in you losing solitor fees. I’d put in a complaint if you can’t find another lender.

As frustrating as this may be, this situation isn't worthy of a complaint.
You have been upfront about your zero hours contract/maternity leave, however didn't tell them that you don't have a recent payslip. If your employed, you should have payslips, and they have no reason to believe otherwise (I've certainly never come across an employed person without payslips).

Lenders have minimum requirements in terms of proof of income, if you cannot provide what they ask for, they are under no obligation to approve your application.

@newtothebabygame if I asked my employer for blank payslips do you think that would be sufficient to prove I'm still employed there?

It would certainly help your case.

Ultimately, it's at the underwriters discretion and at this stage in the process it's unlikely that an underwriter has had any involvement. HSBC can be awkward at times, so if they don't approve your mortgage with the payslips, don't be disheartened as another mortgage lender may accept.

If I was in your position I'd ask your employer for the payslips, then contact a local broker to get the ball rolling on a hunt for a lender who may accept, so that if HSBC do decline your application, you're in a position to immediately apply with another lender.

@newtothebabygame that's really helpful thank you. Have contacted my employer and their accountants today, I have also asked my manager for an updated contract to further prove I work there, have registered with L&C and will see about mortgage brokers near me. Mumsnet is so great sometimes! I don't know anyone in finance to ask so it's such a help

No worriers ☺️ let me know if you have any further question and I'll be happy to help.

If I wasn't on maternity leave, I could have helped you with your application. Xx