Q I am a first-time buyer. I have been in full-time employment for the past 10 years, am paid monthly, and have an excellent credit history.
The problem is that my most recent P60 shows less gross pay than those for the previous three years. My average gross pay per annum is £29,000, I had to take more than two months off work in 2011 because my father was critically ill. I was off from work and out of the UK for more than two months, which I took as unpaid holiday. As a result my most recent P60 is showing my gross pay as £23,500.
My recent pay slips for the past four months are quite good, showing gross pay of £10,000. This shows that my gross annual pay on my next P60, which I will get in May 2013, will be £30,000. My questions are:
1) Is it necessary to provide a P60 to a lender to get a mortgage, or are only the last four pay slips sufficient?
2) If a P60 is necessary then what would you advise me to do? I can’t wait until May 2013 to have the P60 which will surely show my gross pay as £30,000. MH
A You don’t need to worry about providing a P60 as proof of income for a mortgage – most lenders typically ask for your last three payslips, although some will also require bank statements showing the amounts from those payslips as salary credits as well.
Lenders are likely to ask for past P60s only if you want bonuses to be taken into account when assessing your mortgage application. However, as you don’t mention that bonuses form part of your gross pay you should still be able to supply just payslips as proof of income.