Evidence of earnings for a mortgage?

Mayo Exile

Just wondering how strictly the banks and building societies check up on evidence of your salary/wage. A mate of mine is working in a public sector job on a permanent grade 3 wage (about €26,500 on the point scale). At the moment he's in an acting up post on grade 5 (about €40,600) lasting for the next year or two at least. He got an evidence of wages form stamped by HR and they put his higher wage on it and also said he was permanent etc. He has been on the grade 5 wage since January 2007.

So how much checking do the lenders do I am wondering, as he is afraid that if they see he's only actually a permanent grade 3 instead of a 5, they would only loan an amount based on the grade 3 wage and not the 5? He is looking to borrow around €225,000.

mikemac

They'll probably ask for the P60 which will show the grade 3 salary.

On the plus side:

• Banks just love people in secure public service jobs.
• Since he is in the public sector, I realy doubt he'll be forced to drop back to grade 3 when the term is over

Mayo Exile

Yes. He gave in his last 2 P60's, 6 months of bank statements plus the last 3 wageslips which show his grade and point scale (grade 5, point 1) as well as obviously the wage on it!

The_Conductor

micmclo wrote:

They'll probably ask for the P60 which will show the grade 3 salary.

On the plus side:

• Banks just love people in secure public service jobs.
• Since he is in the public sector, I realy doubt he'll be forced to drop back to grade 3 when the term is over

Yes- normally a P60, or a certified statement with salary from employer is fine.

Banks do like people in permanent pensionable employ, as they tend to be a lot less likely to be a credit risk. Civil servants, solicitors, doctors, teachers etc- are all rather popular customers

Re: dropping back grades in the public sector- its normal practise to be acting up in a particular grade (up to 2 grades higher than your grade, but normally just one). This is normally specified for a specified period of time, but may be open ended. There is no guarantee whatsoever that you will maintain that grade- normally it tends to be for a particular batch of work, or to cover while someone is on maternity (or other) leave. It is highly unlikely to be an indefinite arrangement, particularly after problems with unauthorised staff numbers/grades in some of the state bodies and the Public sector and post the missives from PED.

BC

The banks usually ask for a salary cert from the employer as well as pay slips.

Speaking from experience i've found the public sector very strict on the certs - they will clearly specifiy that the grade 5 is acting and how long the contract is valid for.