Mortgage issue - will this be ok?

[ZestyDragon]

We are in the process of buying our first home. We went to a mortgage broker and the best deal is actually my own bank who I have a current account with.

So, they agreed in principal after looking at income and credit searches and then got down to the details 2 weeks ago. We expected the survey to be done by this stage (its the last thing they do as they pay for it). We have a 25% deposit, the mortgage payments will be about 20% of our joint income and we have good credit scores. The problem appears to be that I get hand written payslips from my employer - the bank are "not happy and not impressed" and will make a final decision on this tomorrow. We have provided a letter from my employer (a long standing Limited company) and my wages go into my bank. I am not the higher earner.

Why is this such an issue? Could we struggle to get a mortgage because of this?

It is an issue because of financial crime so banks have to very carefully look at anything that could be suspicious, very few people would have a handwritten payslip these days. You are an unusual case.

I am sure someone an underwriter will double check your bank statements and check they match your payslip to the penny, and look into the company details of your employer and it will all be fine.

If not go back to your broker, and ask them to find another lender for you, but before a full application goes in and a hard search is done on your credit record again, get them to check with the lenders Business Development Manager (broker should have someone they can contact at each lender) whether your documents are acceptable.

Multiple searches on your credit record can adversely affect your credit score.

Thanks MrsP - the irony is that I work for a small financial service provider myself, assess loans, work with credit agencies etc but our payroll situation is outdated. We ourselves would accept handwritten payslips as long as they had a letter from the employer and the salary was mandated to the bank. We are a small but successful company and there will be plenty of information available if needed.

I just hope we get our answer tomorrow - a positive answer!

Is it just payslips that are manual or are all the calculations manual as well? What about your P60's?
It's highly unusual as there is such a payback for automating this.

I hope you get the answer you need from the bank but perhaps you can encourage your employers to invest a little cash in a solution - payroll solutions are pretty cheap. You won't be the only employee with this issue and it will only get worse not better.

We had this exact same problem last year, as dh's wage slips and p60 are handwritten. We phoned hmrc, who sent a letter to confirm what his earnings had been the previous year, and the bank were happy with that. It did take about 4 weeks for the letter to come though.

Offer to supply previous P60s and your bank statements (3 to 6 months worth) where they can see the salary being paid in and in amounts which tally with the handwritten payslips.

They may not be entirely happy at this stage. However banks can come back with further information requests several times before making an offer.

We are no further on today. The bank told the broker there would be an answer today but there is nothing and he is now thinking of approaching another bank.

newstart The payslips are manual but the calculations are done through HMRC basic payroll package and the P60 is printed. The problem with the employer has always been that I was the youngest one there and everyone else either owns their home outright or have had a mortgage for years. I am the first person this affected and they are now looking at the issue. My boss feels awful.

Hi Queen I am hoping it doesn't come to that as the rest of the chain want a fast move but it could be an option. Our payroll package does allow you to print out all payments to a staff member going back a year but we only realised this today. I have made the broker aware.

MrsFlorric I have provided my P60 and 3 months bank statements which show my salary being paid in. The broker thought it would be all sorted by now.