Resigning while the mortgage application is taking place

nollag2006

I’ve spoken with my mortgage provider (BM Solutions) about a transfer of equity, as I am trying to remove my ex-partner’s name from the mortgage.

I have just submitted my Transfer of Equity form, and am in the process of moving to a new job. I have not yet resigned from my old job, as BM require a 6 month employment history.

My question is what, if any checks, will BM make with my employer once they have received the initial confirmation from them that I am taking a salary and am in regular employment? Are any later checks made, or do they ask employers to inform them if there is any change in employment status?

I would like to take up the new job as soon as possible, but do not want to jeopardise the remortgage by alerting BM Solutions to my intention to move employers.

happybroker

your offer from BM will stipulate that you must inform them of any changes to your circumstances. BM say they expect you to have been in your current role for 3 months and continuous employment for 12.

they won't make any checks ordinarily

nollag2006

Thanks for this happybroker. My mortgage multiple for under the Transfer of Equity is likely to be in the region of 4.7x, but with 50% equity in the home.

In your opinion, would they accept that?

happybroker

it's possible but depends on so many other things such as dependants, age, occupation, repayment type and score (A, B or C).

they have a calculator on their website that is pretty good. Have you spoken to an advisor of any sort about this as they will charge you a fee i would imagine to look at the transfer?

nollag2006

Spoke to London & Country mortgages, who handled the original mortgage, but they were useless and muttered something about Data protection constraints.

Don't think I'll use them again

nollag2006

Oh, and one other cheeky question… will the Transfer of Equity trigger a full redemption penalty?

nollag2006

Anyone got any advice?

happybroker

only just logged on but it shouldn't trigger the early repayment charge although they will charge a fee of some sort no doubt. There will be a guide to fees on their website I would think.

The terms of the mortgage shouldn't change, just the names on it and the ownership of the land. You will need to have a solicitor who can act for you in this also and you ex's permission obviously if this hasn't been ordered by a court.

god knows what L&C are thinking of turning away the prospect of business, they could have taken that opportunity to review your protection etc or even just done a good job for you so that you might come back to them in the future, amazing.

nollag2006

Thanks for this happybroker.

I really was not best pleased with them over this, particularly as I’ve used the same guy there a number of times over the years.

Thanks for all your own advice and counsel though. It’s made me a lot more relaxed about the whole horrible thing.