Possible redundancy- do I need to inform lender?

Foamer

I found out last week that my position is to become redundant. I've been offered alternative (much less attractive) employment with my company or voluntary redundancy. Coincidentally, I'm going through a remortgage at present, and received an offer of loan at the weekend. I need to decide whether or not to take redundancy by the 20th of April.

If I go ahead with the remortgage, it'll probably be complete before then, so do I need to inform the lender that I might be taking redundancy? As it's a joint mortgage, we'd probably pass on my wife's salary alone, so if I did, would we have to go through the entire process again?

Peelerfart

Can I ask if you are in a trade union ? What happens if you reject both options ?

luckyfool

If you take the redundancy prior to completing then technically you should notify the lender. There is almost certainly a clause within your mortgage offer requiring you to notify them of any change of circumstances prior to completion.

Foamer

Peelerfart wrote: »

Can I ask if you are in a trade union ? What happens if you reject both options ?

I am in a trade union, yes. I'd imagine if I rejected both options, my current job would expire within the next 13 weeks, I wouldn't get a redundancy pay out at the end of it and the company might stop laughing long enough to show me the door...

Foamer

luckyfool wrote: »

If you take the redundancy prior to completing then technically you should notify the lender. There is almost certainly a clause within your mortgage offer requiring you to notify them of any change of circumstances prior to completion.

Thanks. Once I've accepted the offer of loan, is that the mortgage complete? If so, that would probably be done this week- is it illegal, or at least immoral not to inform them in that case, given that I've received information prior to its completion?

I'm unlikely to go for the redundancy option, but it's a significant amount of money (about 8 months salary), so it's worth considering, but I really don't want to mess up the remortgage.

Peelerfart

Foamer wrote: »

I am in a trade union, yes. I'd imagine if I rejected both options, my current job would expire within the next 13 weeks, I wouldn't get a redundancy pay out at the end of it and the company might stop laughing long enough to show me the door...

Unless there is something I don't know, (and there is lots that I don't )that would,I think, be illegal. This however is a question on the mortgage forum and so I can only wish you good luck .

However please please check your legal position with your union reps.

PF

Foamer

I have checked, Peelerfart- I was accompanied by a rep to the meeting last Friday. It's an either/ or thing- I either take an alternative position or I opt for redundancy. I was being facetious above.

silvercar

Fairly standard. When making people redundant a company has to examine whether people can be deployed elsewhere. If people decline to move elsewhere then redundancy follows.:(

As far as the remortgage is concerned. If you accepted the mortgage and the money was drawn down ie funds taken before the accepting the redundancy, legally you have done nothing wrong. It would only be illegal if you had accepted redundancy or been informed that you were being made redundant before the mortgage completed. The lender isn't interested if you change posts on the same pay and that appears to have been offered to you and would be an option available to you until after the mortgage completes.

Peelerfart

silvercar wrote: »

Fairly standard. When making people redundant a company has to examine whether people can be deployed elsewhere. If people decline to move elsewhere then redundancy follows.:(

.

But then would the redundancy not then be compulsory and not voluntary as the OP stated ?.

Foamer

Peelerfart wrote: »

But then would the redundancy not then be compulsory and not voluntary as the OP stated ?.

No, because they've offered me another position. It doesn't involve loss of status or pay, and it's something I can do, but it's not something I particularly want to do. My union has no objections to what the company have done, and neither do I, bar the alternative job being in a different direction to that I hoped my career would take. If it was compulsory, then I wouldn't have been offered anything else, and I would have been under notice of redundancy straight away. I'm not and wondered if opting to take the redundancy would lead to problems with my remortgage.

Foamer

silvercar wrote: »

Fairly standard. When making people redundant a company has to examine whether people can be deployed elsewhere. If people decline to move elsewhere then redundancy follows.:(

Exactly.

As far as the remortgage is concerned. If you accepted the mortgage and the money was drawn down ie funds taken before the accepting the redundancy, legally you have done nothing wrong. It would only be illegal if you had accepted redundancy or been informed that you were being made redundant before the mortgage completed. The lender isn't interested if you change posts on the same pay and that appears to have been offered to you and would be an option available to you until after the mortgage completes.

OK, thanks. I presume it would complete when I accept their offer of a loan?