Mortgage Offer, yet to Exchange, now partner losing job

andycrystal · 18 May 2017 at 8:53AM

Hi there,

Hoping this forum can provide me with some advice....I know there are lots of topics on this sort of thing already so apologies for another one however feel this case is quite a bit different. See below current position;

- Mortgage Offer received following the lender (Halifax) reviewing and being satisfied of Feb, March & April's payslips and statements of mine and my partners. Valuation on property done
- House is progressing, vendors are buying a property without a chain and they are cash buyers (no mortgage)
- Hope to complete by end of June
- Partner has yesterday received news that she will lose her job at the end of June but she is trying to negotiate this to allow her another month (end of July) due to us currently being in process of buying a house
- partner intends to be employed with new firm either at the start of july or start of august

Questions and concerns?

- shall we make our mortgage advisor aware or will he say he needs to flag this up?
- Will the lender make any more checks between now and completion? if so, what are they chances?
- how probable is it for the lender to make checks of employment between exchange and completion?
- what happens if the lender withdraws between exchange and completion? can i apply for a mortgage with a new person for the same property should my partner be still out of work?
- if she is in work and they withdraw between exchange and completion, can we get another mortgage easily?

Would people just keep quiet at this stage?

Thanks!

tykesi · 18 May 2017 at 9:16AM

Keeping quiet could also be known as mortgage fraud. It will be a condition of your offer that any negative impacts on income must be declared, by not doing so, not getting the mortgage could be the least of your worries.

Trickzyy · 18 May 2017 at 9:19AM

Hi Andy,

I hope I can help answer some of your points.

Different people would approach this situation in different ways, some would tell their broker, some wouldn't. IMHO, I would tell the broker so they can let the lender know as this would technically be mortgage fraud.

A mortgage is a huge commitment and although you may have found your ideal home, if you don't tell your lender and your girlfriend starts a new job and it doesn't work out and you can't keep up the mortgage payments, that home will be repossessed.

Lenders typically do not check employment again once all the initial checks have been completed and the mortgage offered.

andycrystal · 18 May 2017 at 9:29AM

Trickzyy wrote: »

Hi Andy,

I hope I can help answer some of your points.

Different people would approach this situation in different ways, some would tell their broker, some wouldn't. IMHO, I would tell the broker so they can let the lender know as this would technically be mortgage fraud.

A mortgage is a huge commitment and although you may have found your ideal home, if you don't tell your lender and your girlfriend starts a new job and it doesn't work out and you can't keep up the mortgage payments, that home will be repossessed.

Lenders typically do not check employment again once all the initial checks have been completed and the mortgage offered.

Thanks Trickzyy - there isn't any chance we won't be able to make the mortgage repayments; its just that we wouldn't have been able to borrow enough without her salary however obviously at the time of offer and still currently, she has this income. (Plus self employed income that we couldn't put towards the figures due to not having 2yrs of accounts)

are you saying if she starts a new job then it is ok not to let the lender know at this stage?

have you ever heard of them checking employment after exchange or is this extremely rare?

andycrystal · 18 May 2017 at 9:30AM

tykesi wrote: »

Keeping quiet could also be known as mortgage fraud. It will be a condition of your offer that any negative impacts on income must be declared, by not doing so, not getting the mortgage could be the least of your worries.

she will get a job so there wouldnt be any negative impact so things will only be same if not improve - still ok not to declare at this stage?

Trickzyy · 18 May 2017 at 10:07AM

andycrystal wrote: »

are you saying if she starts a new job then it is ok not to let the lender know at this stage?

No, that is certainly not what I am saying, quite the opposite actually. The lender would want to know as they would reassess affordability, and want to know several other details about the new job.

andycrystal wrote: »

have you ever heard of them checking employment after exchange or is this extremely rare?

It would be rare, as part of the terms of the mortgage offer would be for YOU to let them know if there are any changes in circumstances.

Ultimately, you can choose to do what makes you feel most comfortable, I am just trying to help with the facts.

andycrystal · 18 May 2017 at 10:09AM

Trickzyy wrote: »

Ultimately, you can choose to do what makes you feel most comfortable, I am just trying to help with the facts.

I really appreciate it, thanks.

In your experience; what are the chances out of 100 would they come back and check employment status again?

tykesi · 18 May 2017 at 10:51AM

andycrystal wrote: »

I really appreciate it, thanks.

In your experience; what are the chances out of 100 would they come back and check employment status again?

I think the phrase

Trickzyy wrote: »

I am just trying to help with the facts.

Suggests the poster doesn't want to help or advise you to commit mortgage fraud.

davidmcn · 18 May 2017 at 11:01AM

andycrystal wrote: »

In your experience; what are the chances out of 100 would they come back and check employment status again?

Or to put it another way, "I am considering committing mortgage fraud, would all of you mortgage brokers and lawyers please advise me what my chances are of being caught"?

Loft_Boy · 18 May 2017 at 11:52AM

I am.speaking from personal experience

A few years ago my wife and I were in the process of buying a house we had just had our first child ( had our offer accepted while we were still in hospital day after the birth. Pretty great 24 hours!

On my return to work my new boss told.me.i.was.being put.on a pip having been there 5 years and always got.good ratings this was a shock the pip was for 12 weeks. At this point we didnt declare anything as nothing had changed and I.just thought it was someone trying.to.flex their.new managerial.muscle.

I jump through hoops for 12 weeks all.good have a.meeting and am.told.it will be going to disciplinary and I.could be sacked. At this point I realise I.am.in a no.win situation thing is.i.knew it was a load of.rubbish and after.finding.out.that the supposed.complainants hadn't.made.complaints ( I had their.testimony on email I filed.a.grievance with Hr.

Long story short they offered.me a lot.of.money to.go.and not go through with the grievance but.my exit.date.would have been before.completion so through various ways I dragged it.out and left.on the day of.completion

Left work.and went to.my.new house. Do.i regret.doing it.-no
Was it stressful - Absolutely new baby going to a place of work and having to be Nic to.someone.you would.love to throw.off a bridge and worrying about possible.loss.of.deposit etc I don't think.i.slept.properly.for.about 3 months.

People.can.advise.you.of.rights.and.wrongs.but.sometimes.life.isnt black and white.but.if goes wrong you.will.have.to carry the can

tykesi · 18 May 2017 at 12:06PM

Loft_Boy wrote: »

I am.speaking from personal experience

A few years ago my wife and I were in the process of buying a house we had just had our first child ( had our offer accepted while we were still in hospital day after the birth. Pretty great 24 hours!

On my return to work my new boss told.me.i.was.being put.on a pip having been there 5 years and always got.good ratings this was a shock the pip was for 12 weeks. At this point we didnt declare anything as nothing had changed and I.just thought it was someone trying.to.flex their.new managerial.muscle.

I jump through hoops for 12 weeks all.good have a.meeting and am.told.it will be going to disciplinary and I.could be sacked. At this point I realise I.am.in a no.win situation thing is.i.knew it was a load of.rubbish and after.finding.out.that the supposed.complainants hadn't.made.complaints ( I had their.testimony on email I filed.a.grievance with Hr.

Long story short they offered.me a lot.of.money to.go.and not go through with the grievance but.my exit.date.would have been before.completion so through various ways I dragged it.out and left.on the day of.completion

Left work.and went to.my.new house. Do.i regret.doing it.-no
Was it stressful - Absolutely new baby going to a place of work and having to be Nic to.someone.you would.love to throw.off a bridge and worrying about possible.loss.of.deposit etc I don't think.i.slept.properly.for.about 3 months.

People.can.advise.you.of.rights.and.wrongs.but.sometimes.life.isnt black and white.but.if goes wrong you.will.have.to carry the can

That's a lot of full stops :rotfl:

Mortgage Offer, yet to Exchange, now partner losing job

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