Mortgage Advice - Can anyone Help

Albert_32

Hello Moneysavers,

Would appreciate if anyone could steer me in the right direction on a few questions...

We are planning to move to a new area, and my partner would leave her current employment.

1) Will be able to pop on the mortgage application my partners income?? Or will this be declined as when we move out of the area, my partner will be temporary unemployed.

2) If my partner then takes employment with an agency as a temp would the building societies / bank take her income into consideration.

Appreciate any advice as always :0

Cheers,

Albert

MortgageMamma

Its unlikely that a mainstream lender will take temporary employment into consderation for mortgage purposes. I

t would be better if your partner could obtain alternative permanent employment in whatever capacity before you make the application. she doesnt actually have to have started the job, just to have a contract stating she is permanent and her salary so you should still be able to get the mortgage before you relocate.

MM

Albert_32

Hi MM,

We applied through Nationwide some months ago before opting to relocate - They offered £195k mortgage.

As I work from home we have decided to go and live near family and friends and therfore we would lose my partners temporarly income.

Would N Wide still offer £195k under these circumstances.. As it would be catch 22, we might not be able to get the mortgage in the new area without my partners income and therefore not be in the position to move....

Hope you can help.

Albert

MortgageMamma

As far as I am aware its not Nationwides policy to lend before somebody actually starts their new employment, but if you try royal bank of scotland/first active they will normally do this if a contract is produced and you can prove you have savings for the repayments to cover the period before your partner starts new job.

A note for mortgage brokers reading this, if you are wondering why I said first active, this is because under RBSIP policy at the moment you can submit ONE purchase application through First Active. I am considering doing this at present as Royal Bank of Scotlands service levels are in the pits, whilst the service levels of first active are still excellent.

Albert_32

Hi MM,

Thanks for taking the time to offer some advice.

Appreciate your thoughts and now I am more informed.

Have a great Sunday night

Cheers,

Albert

MortgageMamma

No problem

Off to watch france get stuffed by the stalions now.

MM

PhilDS

Do lenders actually check WHERE someone's job is? If your girlfriend is in employment when you apply, I would assume the application would go through. How would they know she is to leave her job when you move?

My girlfriend and I are going through the same thing at the moment. We are only re-locating 75 miles down the road, but the principle is the same. We have an AIP with Nationwide and have not been asked about her job (or mine) at all!

It's not lying, just not telling the whole truth

AndrewSmith

PhilDS wrote:

Do lenders actually check WHERE someone's job is? If your girlfriend is in employment when you apply, I would assume the application would go through. How would they know she is to leave her job when you move?

My girlfriend and I are going through the same thing at the moment. We are only re-locating 75 miles down the road, but the principle is the same. We have an AIP with Nationwide and have not been asked about her job (or mine) at all!

It's not lying, just not telling the whole truth

At AIP stage they will not ask about location etc:

On the full application form however you are asked whether your income or employment is going to change. If you know that it is then you must answer truthfully.

Also they may carry out employer referencing and, if she has already given notice, would find out that way.

Andy

PhilDS

The wife hasn't put her notice in yet. I agree, it would be a bit silly to lie if she had. But if we said we had no intention of her leaving her job, and then she did a month later, that's life. Things happen, I can't say I'll be in the same job a week, a month or a year after I agree a mortgage offer. I just don't see what the problem is (as long as we can afford the mortgage).

AndrewSmith

The problem is that most people forget that Mortgage Companies are actually 'lending' them money.

ALso remember that a lender has NO obligation to lend to you, and can withdraw a mortgage offer / agreement to lend / positive decision at any time and can refuse any application without giving a reason.

The fact is that you know that there is every chance your wife will leave her job. Also to the OP you are also aware that your GF will leave her job.

The lenders will notice that the two postcode areas are quite different (current address to new one) and will sometimes ask what effect this will have on employment.

The can take any reference, ask any question they see fit to satisfy themselves that the case stacks up.

I just don't see what the problem is (as long as we can afford the mortgage)

The problem is that, although you may be able to afford the payments now, what happens between now and when you come off your initial incentive rate?

You may be 1 salary down (no guarantee that your wife will find another job, or stay in it), maybe missed a couple of loan or credit card payments as a result, culminating in your outgoings increasing, along with your mortgage payments.

What would happen if you couldn't afford to keep up the mortgage and you were reposessed? It would be the lender you would be blaming not yourself for not giving all the information on the application form.

Lenders have criteria for a reason, not just to be difficult. Besides if you are caught not giving accurate information on a mortgage application it is considered fraud and, as such, you could face prosecution. This does happern as well.


Think about this:

If you agreed to lend me your car, based on the fact that I had told you I had no points or upcoming convictions, and had never crashed a car.

A week later once I have your car you find out that I am about to receive a drink driving summond through the post and got flashed by cameras twice in the last month.

My guess is, to say the least, you would be a bit hacked off and worried about your car. Needless to say if you had been in posession of the full facts at the beginning it may have changed your decision to lend me your car.

Same basic principle