Mortgage lender asking for employers details at the last minute

[cakesbythesea]

Is it usual for lenders to contact your employer directly? Obviously I have no issue if they do and have messaged my manager to let him know someone might be in touch shortly.

However seems slightly odd as they asked for his details after the mortgage had been approved. They've had last my 3 payslips so I'm not sure what my manager can tell them that they don't already know or have seen.

Mortgage advisor said it could be because I have a small deposit (5% however I'm only borrowing a small amount - 70k).

Is it normally just a tick box exercise? Just seems strange it was left until the very last minute 🤔

In my experience they usually only do this if there's something unusual about the case (e.g. if you're pregnant and they want to check mat leave/returning arrangements). They contacted my employer once as I had been given a backdated pay rise part way through the 3 months of payslips I had provided and they wanted to check they were interpreting the figures correctly for what my future salary would be.

When you say it's been approved, have you got the offer? You might have had a decision in principle, but they need to verify the information in another way before offering.

Lenders spot check a certain percentage of their offers towards the end of the process before releasing funds. It’s why you’re always advised not to take out any additional credit or change your circumstances between receiving your offer and completing on your purchase; and how they catch out people who have lied about potential changing circumstances or stable finances for their application. And yes, they’re more likely to post check those offers which are right at the top of affordability calculations.

@SunshineThelma it was agreed by the underwriter and then I was sent a mortgage illustration and the direct debit form to sign which I did and have now sent back. I thought the offer was the decision in principle which I had weeks ago?

@ComtesseDeSpair

Lenders spot check a certain percentage of their offers towards the end of the process before releasing funds. It’s why you’re always advised not to take out any additional credit or change your circumstances between receiving your offer and completing on your purchase; and how they catch out people who have lied about potential changing circumstances or stable finances for their application. And yes, they’re more likely to post check those offers which are right at the top of affordability calculations.

This, likely the case has been pulled for a random check that may go further than an underwrite might ie get in touch with employers as this is normally out with underwriting remit

I wouldn't like this. I don't think it's appropriate. Surely there are ways round this. I know we've had covid and banks are more cautious and therefore more box ticking.

I think the banks and other areas such as insurance are getting well ..... 'a bit above themselves'.

I work for 6 different companies sometimes, sporadically. I dealt with 4 major banks recently and it was shocking the change in attitude. Loans, bounce back loans.

My boss his mortgage.

Insurance quote. The questions were ridiculous, personal, intrusive. At one point she phoned me and I asked her if she wanted to know what I was having in my sandwiches, and whether the tuna was a ethically sourced?

Seriously though, it's got a lot worse. I had to bite my tongue. I really wanted to say 'is this really necessary'?

at one point they made me really cross, I had to walk away and make a cup of tea. I felt like saying 'who the heck do you think you'.

I honestly think it's suddenly got a lot lot worse. And I don't think it's ok.

@Oblomov21 yes I noticed that they've become quite strict. It feels never ending sometimes.

Do they normally ask for more paperwork once the mortgage has been agreed? Payslips etc? I had trouble getting a mortgage, mainly because I'm on my own and because I have a small deposit. I thought I was home free once the mortgage had been approved, but just curious now if they will ask for more paperwork later down the line.

[quote cakesbythesea]@Oblomov21 yes I noticed that they've become quite strict. It feels never ending sometimes.

Do they normally ask for more paperwork once the mortgage has been agreed? Payslips etc? I had trouble getting a mortgage, mainly because I'm on my own and because I have a small deposit. I thought I was home free once the mortgage had been approved, but just curious now if they will ask for more paperwork later down the line.[/quote]
People lie on their mortgage applications all the time - that they aren’t about to go on maternity leave, or be made redundant, or have their bonus reduced, or change jobs and then be in a probation period. In some cases it can be up to six months (or more) between the mortgage offer being made, and the sale actually completing. A lot can happen in that time, and lenders are entitled to make sure you’re still a credible candidate able to repay your debt.

If you’ve been honest, then 98% of the time it’s simply a formality check and you’ll be fine.

I work in payroll and last year we had a call from a bank checking on the status ofg one of our employees. They were especially interested in the liklihood of furlough or redundancy. We were able to reassure them that our essential industry was continuing as normal.

[quote cakesbythesea]@SunshineThelma it was agreed by the underwriter and then I was sent a mortgage illustration and the direct debit form to sign which I did and have now sent back. I thought the offer was the decision in principle which I had weeks ago? [/quote]
A mortgage in principle and illustration are not the same as a mortgage offer. A mortgage offer is when they've received payslips, employment details, done credit checks and checked affordability. My offer took about 8 weeks. They didn't contact my employer, but providing this was part of the process and I also had to supply my employment contract.

Good luck, it sure is a stressful process!

My mortgage company contacted both my and DH employers. It was just a security check to make sure we were actually employed where we said we were. Then the call was transferred and they asked us to confirm the amount borrowed as a security check, and that was it.