Trouble confirming pay to mortgage lender?

A reader from County Durham is waiting for a decision on a mortgage, but the lender has found problems with her husband's pay.

Tony Davis, myfinances.co.uk mortgage expert from Mortgage Meadow, takes her through the problem.

Susan from Durham asks:

We have been in the process of applying for a mortgage through Halifax, it has been four weeks now.

They are dragging their heels with some sort of problem with my husband's pay.

What I want to know is since they have had a valuation done and I have been charged £355, if they turn round and say no to the application, can I ask for the valuation fee to be paid back to myself.

Should they not have looked into my husband's salary before they went through with the evaluation?

The problem with his pay is that his work reference isn't adding up to the same amount as his payslips. They can see in black and white that he is earning a lot more than what his boss can guarantee his weekly wage to be as he is not paid a basic.

He is a truck driver and paid different every week by what mileage he does. Why can't they just use his three months of pay slips that they have seen?

Tony at Mortgage Meadow replies:

Dear Susan,

I am sorry to hear of your current problems with Halifax. Generally most lenders will instruct a valuation before all income checks are completed.

This is to save time during the application process. Unfortunately most valuation fees are non refundable once the valuation has been completed.

Please do check the terms and conditions of the mortgage which should be on the application form that you completed and the Key Facts Illustration that you were given.

Lenders have different criteria to assess a person's income, some are happy use to use an employer's references others will rely on pay slips. It sounds like your husband's income is not straight forward, if this was evident from the outset and you notified Halifax of this, then there is perhaps an argument that Halifax should not have instructed a valuation until they were happy with the make up of his income.

Ultimately it will be your overall risk profile which will include the amount of your deposit, the amount you wish to borrow in relation to your income and your credit result that will influence Halifax's decision on her husband's income.

I am sorry I cannot be of more help here, if you feel Halifax is in wrong you may want to obtain a copy of the lender's complaints procedure to take this further.

If you have a question for Tony, go to the myfinances.co.uk Ask the Mortgage Expert section.

Or for more information or mortgage advice go to Mortgage Meadow.

Mortgage Meadow is an independent mortgage broker and is authorised and regulated by the Financial Services Authority.