Help made redundant days before exchange

3mph · 1 March 2017 at 7:55PM

Agree with Penitent, usually in these cases the husband is optimistic and the wife is realistic and they should always be guided by the wife.

Em0208 · 1 March 2017 at 7:57PM

The mortgage repayments would be more as we are upsizing, it's difficult to say how long it would take to get a job, last time it was 9 months we have about 12 months give or take with redundancy package and profit if we sell. His age wouldn't be an issue (40) but he has a high ranked position in IT so obviously employers are fussy. I currently don't work as we have a 3 yr old and no child care so I stay at home, not sure how I would fare getting employment after 3 yrs of not working and I wouldn't come close to pulling in what we would need, So not sure that would even help. Also is there a possibility our lender ( Santander) would do a employment check pre completion? If they do we would most certainly be sunk for non disclosure even if he did get a job very quickly. He is a risk taker - nature of his job I guess! I am not and I just feel sick about it all

gembert83 · 1 March 2017 at 8:33PM

Sorry to hear your news. A condition of your mortgage offer will most likely be that you need to notify the lender of any changes in your situation before you take the mortgage out. If your solicitor were to be made aware of this, then any decent one would say they would not proceed unless you permitted them to report this to them - not just to protect themselves (and their obligations to the mortgage lender) but also you.

sheff6107 · 1 March 2017 at 9:13PM

If you are going to exchange in a few days I'd carry on personally.
You are still under contract with your employer. How gutted would you be if the company turned around and changed their mind or extended it for 6 months and you'd thrown in the towel?

Santander will probably just ask to see your last payslip before completion to release the funds (if they bother at all).

Red-Squirrel_2 · 1 March 2017 at 9:26PM

I'm sorry to hear of your news, it must be so disappointing.

If it were me, I'd be ringing the solicitor first thing in the morning to tell them not to exchange due to the change in circumstances.

I know for a fact that if I went ahead with something like this I would be stressing over it and losing sleep for months, if not years. It would be mortgage fraud, and a lot of people might do it anyway because the odds of getting caught are low, but could you live with having committed fraud and put yourselves in such a risky position?

Work out the worst case scenario and only go ahead if you are fine with it. With exchanging but not being able to complete because the lender did checks, with being responsible for all the costs of the chain because it was your fault, with having fraud markers on your credit files for years to come stopping you from getting even a phone contract or a new current account. That's unlikely to happen, but its not impossible.

Don't let your husband push you into doing something you are uncomfortable with, if your signature is on there you'd be just as responsible as he is.

TBagpuss · 1 March 2017 at 9:35PM

Another thing to think about is *where* your husband may get another job.

It might be better to wait until he has a new job and then move, you can take into account where he will be working, how long any commute will be, as well as all the other factors which went into choosing the current property.

How long is your chain? might you be able to delay exchange for a few weeks while your husband makes some initial enquiries about potential new jobs,at least?

Em0208 · 1 March 2017 at 9:38PM

Yes but I know that exchange is not guaranteed in a couple of days any number of things could delay it and if that turns into weeks we could be in serious trouble. My OH wants to give it a few days to compute what has happened and see what bites he gets after he puts his cv up but he still wants to go ahead with the exchange and I'm really scared. In a way if this had happened after exchange due to the cost implications of losing a 64k deposit if we pulled out I might agree and risk completion. I can't help thinking that in 2 months or so I'd say if only we had hindsight, the thing is in my opinion we do. A solicitor has told us legally we do not have to tell the mortgage company yet as technically he is still employed ( this isn't the one dealing with the sale) one who we asked to check the redundancy paperwork but I'm still so unsure of proceeding. This will upset the chain I know as we have had our fair share of set backs currently 6 months from start of process and our sellers have been fantastic by waiting when our first buyers fell through and then subsequently the first ones in the chain had to pull the plug but at the moment we have to think of ourselves and also the rest of the chain if/when the mortgage gets pulled. It's heart breaking

pinkshoes · 1 March 2017 at 9:41PM

Em0208 wrote: »

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

Is there any possibility that he can take one of the offshore jobs in another country? Not ideal, but it wouldn't be forever!

AnotherJoe · 1 March 2017 at 9:46PM

You need to consider the worst case.
-You exchange.
-Lender pulls the mortage.
-You have lost your 10% deposit plus most likely much more (costs all the way up and down the chain)
-Redundancy money disappears in a flash.
-Husband can't get another job, you are struggling to pay your existing mortgage

I've taken some big risks with money in the past, made and lost a lot (including losing a six figure sum in a couple of months).

I wouldn't do this.

(And a great point from TBagpuss about suppose if your husbands new job is somewhere else entirely)

Don't do it.

Em0208 · 2 March 2017 at 7:27PM

Hi everyone and thank you all for your replies, it looks like exchange will be delayed by a few weeks now, I am trying to get my OH to see the bigger picture. I am unsure at what point we would need to inform the lender, he says a solicitor has said that we are not obliged until employment ends, if he is on a 3 month notice he won't be technically unemployed until June, so would knowing that he was being made redundant still class as fraud and therefore need to be disclosed to the lender. I think it does but he is adamant it's not fraud.

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Help made redundant days before exchange

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