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Help made redundant days before exchange

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Em0208
Em0208 Posts: 16 Forumite
in House buying, renting & selling
Hi
We are due to exchange on our dream property in a matter of days, my husband has just come home to tell me he is being made redundant. I am in utter shock and can't see any other way but to have to pull out of our sale and purchase, my husband on the other hand wants to still go ahead, he is getting a good package enough to give us 6 months or so but if he doesn't get another job for a while or god forbid the lender find out after exchange we lose so much more than if we pull out now. I don't want to at all but I'm a realist and knowing our luck we would get found out and even if we don't I would be worried sick if he couldn't get a new job! My husband is furious that I want to pull out as he thinks the risks are worth it and the lender will not do any further checks before completion and he will get another job quickly so there is no reason to disclose this information. I don't agree. Some advice would be appreciated.
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Comments

  • Guest101
    Guest101 Posts: 15,764 Forumite
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    Redundancy doesn't 'just happen' there's a long process, how far into it is he?
  • Em0208
    Em0208 Posts: 16 Forumite
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    He was told today so I guess he is still technically employed for another month but I was under the impression that you need to disclose any change in circumstances or you are committing fraud?
  • Guest101
    Guest101 Posts: 15,764 Forumite
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    I guess another question is better, is the business continuing to function?
  • Em0208
    Em0208 Posts: 16 Forumite
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    Yes the the business is not going into administration, he is being made redundant as his work is being off shored to another country, so the business will continue to function without him
  • Guest101
    Guest101 Posts: 15,764 Forumite
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    Ok so he must first see if there are alternative positions available for him.
  • silvercar
    silvercar Posts: 46,960 Ambassador
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    If you both still decide that you can afford the property and are prepared to take the risks associated, you are probably early enough in the process that you don't yet have a change of circumstances that warrant notifying the lender.

    There is always the risk that the lender will want salary confirmation just before releasing the funds on completion, so part of your attitude to risk should include working out what the company may say if asked.
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  • Em0208
    Em0208 Posts: 16 Forumite
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    He has had that consultation already today and because he is senior in a large company no other positions are available to him, so we know that he will be made redundant it's just a case of whether he gets a new job or if we are obliged to disclose this info to the lender. I just don't want to exchange on a house only to either have the mortgage pulled or default on payments if he can't get another job to me it's too risky even though I would be devastated to lose the house I dread to think of the alternative
  • hazyjo
    hazyjo Posts: 15,470 Forumite
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    It's really hard, but I would be honest in this case. You said you only have enough to see you through for six months. That's really not very long. Perhaps speak with the lender to see if they would offer the mortgage if your OH got another job with similar pay, and see if the vendors would give you a month's grace or so to find another job. You could always try a broker later if it's a problem with your lender. Yes, the lender can run checks before exchange - it's often random as far as I'm aware.


    Not what you want to hear. I'm not one for risk - certainly not in this scenario anyway. Is it a big mortgage? I mean maybe you could both find say £800 a month even if it means stacking shelves, but if it's more like £2k+, be prepared for sleepless nights until he gets a job.


    Jx
    2023 wins: *must start comping again!*
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    There'll be another time to move house. Rebuilding your credibility if matters turn for the worse without could be life changing. The mortgage application declaration you signed is perfectly clear. In that you agreed to notify the lender of any change in circumstances. Lying is fraud.
  • BobQ
    BobQ Posts: 11,181 Forumite
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    hazyjo wrote: »
    It's really hard, but I would be honest in this case. You said you only have enough to see you through for six months. That's really not very long. Perhaps speak with the lender to see if they would offer the mortgage if your OH got another job with similar pay, and see if the vendors would give you a month's grace or so to find another job. You could always try a broker later if it's a problem with your lender. Yes, the lender can run checks before exchange - it's often random as far as I'm aware.


    Not what you want to hear. I'm not one for risk - certainly not in this scenario anyway. Is it a big mortgage? I mean maybe you could both find say £800 a month even if it means stacking shelves, but if it's more like £2k+, be prepared for sleepless nights until he gets a job.


    Jx

    I agree with the above, but two other questions to ask:

    Are you substantially moving to a more expensive home? Downsizing? Moving somewhere at the about the same value?

    If you are not significantly upping your mortgage, telling the lender might bean option as you would be in roughly the same position either way.

    How likely is it he will get a new job in a few months? How likely is it he will he get a job that pays the same or better? Clearly that may be affected by his age and qualifications/experience and types of job he can do and their availability in the area you are in/moving to. If he were say late fifties in a job where comparable positions are limited that would be good reason to pull out.
    Few people are capable of expressing with equanimity opinions which differ from the prejudices of their social environment. Most people are incapable of forming such opinions.
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