Temporary Reduction in Pay - Mortgage Offer Effected?

I,_Geek

My OH has just signed the final form approving his mortgage offer on the house we're buying. The bank is happy with everything and we should be moving within a few weeks.

However...

He (and the rest of his office) found out today that they will be working a 3-day week until Christmas, going up to a 4-day week in January. His bosses say they hope things to have picked up by the early months of next year. (He works in architecture and things always slow down just before Christmas since no-one is planning house extensions at this time).

He's not stretching himself with the current mortgage offer (it's less than 3 times his salary). The amount he's borrowing is very little compared to some mortgages that people have. He can still make the monthly repayments based on a 3-day week salary. We're also only borrowing £8k more to go from our current house to our new one.

We've got to wait until Monday to find out what the mortgage lender thinks about this, but in the meantime I'd appreciate if anyone has been in a similar situation and has any idea what their response might be. I know every situation is different but we'll be thinking up worse-case-scenarios all weekend otherwise.

theartfullodger

Mortgage lender won't like it & may possibly withdraw offer.

If you go ahead without telling them that would probably be fraud... and you might end up in an even worse mess.

Sorry, join the thousands like yourselves...

I,_Geek

If you go ahead without telling them that would probably be fraud...

Yep, and we definitely won't be doing anything that could be fraudulent.

Cazza

Yep, you've done the right thing in telling them.

The mortgage company not liking it is a bit of a blanket statement, assuming you're still within the required income multiples etc, it shouldn't make any difference.

jamesdrew

I think the mortgage company will be glad you have told them and provided you can demonstrate that the loan is still serviceable within your temporarily reduced budget, it would be very unlikely that they would retract their offer. Be positive and good luck . . .

I,_Geek

We only found out yesterday, so we'll be contacting the mortgage lender on Monday to explain the situation.

Once in the new house, our outgoings on the mortgage will be £60 a month more than they are at the moment. Utility bills will be reduced, so we'll be in a very similar financial situation to where we are now. So where we're living won't make a difference to our ability to make mortgage repayments. OH worked out that even if a 4-day week continues for a while into next year, we could cover our monthly outgoings. He can also provide them with proof that we have money put aside to cover mortgage repayments if the worst happens, which is very unlikely.

Like jamesdrew said, may as well think positive over the weekend instead of wasting time worrying.