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no pay slips and want a mortgage

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  • 07-04-2010 5:24pm
    #1
    Elmo Fudd
    Closed Accounts Posts: 4 ✭


    My partner works as a carpenter for his father and as it's a family business he doesn't receive pay slips. We have been granted planning permission and now want to start looking for a mortgage. However, banks are looking for 3 months worth of recent pay slips. I'm a permanent teacher, so this isn't a problem for me, just my other half.
    Does anyone know whether banks will accept written notification from his employer (a.k.a his Dad) on his income? Also, he's on a three day week so is on social welfare too. Will this affect Bank's decision on giving a loan?
    I'd really appreciate any help or advice anyone has! :)


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    #2
    chris85
    Registered Users Posts: 4,502 ✭✭✭chris85


    Elmo Fudd wrote: »
    My partner works as a carpenter for his father and as it's a family business he doesn't receive pay slips. We have been granted planning permission and now want to start looking for a mortgage. However, banks are looking for 3 months worth of recent pay slips. I'm a permanent teacher, so this isn't a problem for me, just my other half.
    Does anyone know whether banks will accept written notification from his employer (a.k.a his Dad) on his income? Also, he's on a three day week so is on social welfare too. Will this affect Bank's decision on giving a loan?
    I'd really appreciate any help or advice anyone has! :)

    The business needs to sort out payslips. I am assuming he is paying tax and PRSI so a record is obviously kept of what he is getting paid and if not he may not be paying the correct amount of tax which is a big issue especially if he is on the social welfare.

    Family business and all is fair enough but these days everything needs to be done proper with payslips and all that.


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    #3
    dotsman
    Registered Users Posts: 3,636 ✭✭✭dotsman


    chris85 wrote: »
    The business needs to sort out payslips. I am assuming he is paying tax and PRSI so a record is obviously kept of what he is getting paid and if not he may not be paying the correct amount of tax which is a big issue especially if he is on the social welfare.

    Family business and all is fair enough but these days everything needs to be done proper with payslips and all that.

    Agreed, regardless of whether his dad is his employer or not, he still requires a payslip. I'm pretty sure a P60 is a legal requirement.

    If the Dad is not providing payslips, my guess is that there is little/no tax being declared. No bank in their right mind would lend to someone suspected of tax fraud.


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    #4
    amdublin
    Registered Users Posts: 20,653 ✭✭✭✭amdublin


    Elmo Fudd wrote: »
    Does anyone know whether banks will accept written notification from his employer (a.k.a his Dad) on his income?

    Unfortunately the short answer is No.

    Sub-prime mortgage lenders used to allow people self certify but (a) you would be on a high interest rate and (b) don't think there are any sub-primes doing any New Business here in Ireland anymore.....

    Banks will probably only take your husband's actual salary ie. not social welfare.

    Talk to a broker. They'll tell you straight off whether you've a chance of getting a mortgage or not.


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    #5
    Elmo Fudd
    Closed Accounts Posts: 4 ✭Elmo Fudd


    Thanks for all the replies.
    I must have made it sound like there's something dodgy in the way his dad is paying him because of the lack of pay slips, this is not the case. Everything is legal and above board, i.e. P60, taxes etc. But thanks for advice, I think we'll talk to a broker.


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    #6
    unclebill98
    Registered Users Posts: 3,816 ✭✭✭unclebill98


    A letter from his employer stating all the work details, where, how long, perm, wage, method of payment all on headed paper would suffice and signed by the owner.

    Match it up with a P60 too.

    As mentioned only actually salary will be considered and Social is not one of those.

    Does he lodge his full wage into the bank? If so this can be highlighted on a statement and cross referenced with the employer.

    Banks have used employers letters for all types of loans. Its just easier for the person in the bank to get payslips but a letter is ok.


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