Should I remortgage and not tell lender about redundancy?

Mandog

AndrewSmith wrote: »

Yes there is.

The mortgage offer or 'contract' is based on circumstances at the time of underwriting. This includes any incentives such as fixed rate or cashback.

If the borrower's circumstances change and they do not inform the lender then technically the 'contract' becomes invalid exposing the borrower to anything the lender wishes to throw at it. For example repayment of any incentives such as free legal fees and cashbacks, and even retrospective application of standard variable rate.

To The OP: Do not lie to the lender, be honest with them. How would you feel if you loaned someone your car who told you they were using it for the Tesco run, to find out that they had been using it as a mini cab?

Sorry to resurrect an old thread.

I'm finding it hard to get my head round this 'material change of circumstances'. I refinanced a few months ago with my existing lender and didn't tell them I'm now self-employed. I would not have lied but they didn't ask anything at all - it was sorted in a 5-minute phone call.

Am I in breach of contract? Do people really call up their mortgage companies to say 'I'm now self-employed/on maternity pay/out of work/part-time/in a lower paid job/on a short-term contract'?

AndrewSmith

Mandog wrote: »

Sorry to resurrect an old thread.

I'm finding it hard to get my head round this 'material change of circumstances'. I refinanced a few months ago with my existing lender and didn't tell them I'm now self-employed. I would not have lied but they didn't ask anything at all - it was sorted in a 5-minute phone call.

Am I in breach of contract? Do people really call up their mortgage companies to say 'I'm now self-employed/on maternity pay/out of work/part-time/in a lower paid job/on a short-term contract'?

If you read the terms and conditions of the mortgage offer or 'contract', and read the mortgage application declaration page that you would have signed then it will state clearly that you have an obligation to notify the lender of any changes in your personal or financial circumstances.

In reality hardly anyone does however in a case where someone is now not working thus has no earned income it is a little different than someone who has changed from being employed to self employed.

Not saying either is right or wrong, just telling how it is.

Mandog

Thanks Andrew, that makes sense. Bit late for me to consider telling them now but I'll bear it in mind for the future. I'm someone who likes to be totally within the rules!