New job at worst time?

Elspeth

Hi

We had an offer accepted on a house on Saturday. We've got an AIP (Mortgage Certificate) with HSBC and have an appointment next week to do the full application. So far so rosy.

Went back to work yesterday after two weeks off to be told that my post is being transferred to a different department. My head of department is keen to keep me though and is putting through a business case for a new post, which would be very much tailored to my strengths and interests. I know I will have problems working for the head of the other department and that I will get bored of the (my) job there quickly, so I'd like to take the new job if it emerges. That's not guaranteed, given the economic climate.

The timescale for the changes is not clear yet, but likely to be in the sort of period (12 weeks-ish) that we're hoping to complete on the house (chain-free at both ends).

So...

• If I change jobs (with the same employer) between application and completion is this going to stuff up the application with HSBC? There will be a new probation period, probably 6 months.
• There is a chance (probability unknown) that instead of my current permanent contract I'd be offered a 12 month fixed term, I assume this makes things worse?
• Is there a point after which my changed circumstances would not matter, or am I right in assuming that I if the change happens the day before we complete I would have to declare it and that they could withdraw their offer to lend at that point?
• We're going for their Lifetime Tracker (with a budget for overpayments/much higher interest rates). Could they tell us (if the change happens very late) that they would only lend on a different product - or would it be a straight "No, not now"?

In case it helps:

• We have a 40% deposit (required for this HSBC product) and are borrowing exactly 2.5 our joint salaries.
• My other half's job is not likely to change in the next few months, but I doubt he earns enough to get the mortgage without my salary (would be 6.25% his salary).
• We have at £10K loan for furniture and new windows from my Dad (but could pay that off before completion if required as we have a extra £10K) and no other debt.
• I have 3 late payments in 6 months from 2004, but otherwise we both have squeaky credit records.

I suppose what I really need to know is should we carry on with the application with HSBC (which I think is the right mortgage for us) or go and talk to a broker now about another provider that will be more flexible?

Thanks to anyone that can help. I have been awake since 4am fretting about what to do, so please excuse any typos.

Elspeth

Jacka87

Hi,

Not really able to give any advice with regards to HSBC mortgage but I have a similar type of work related issue. The thing that strikes me tho is why would you want to move from a permanent position to one that was only for a year but with a 6month probation?

With regards to my own situation I would be moving from a period contract to a permanent post - so opposite to you which the bank likes. Allthough you dont seem to think that you would like your new job (even tho its the same as your current job just with different HoD) I would persist with this until the mortgage is sorted then try and move job inernally if required.

Just my opinion but obvioussly your choice

Elspeth

Thanks Jacka87. Obviously I'd prefer a permanent post and would have to think very carefully before taking a new (contract) post, even if much more interesting and more senior. The probation period would be a formality that HR would care about but would mean little since I'm already doing the things the new job would have as its focus.

In case it helps anyone else, I have now done the obvious thing and rung HSBC. Their answer:

• probation periods have to be formally 'waived' before they will offer a mortgage
• they'll only consider income from a fixed term contract if the person has been with the employer for 2 years and if the contract has already been renewed once
• a guarantor wouldn't help compensate for either.

The very sympathetic lady on the phone did say that they were probably one of the most conservative lenders around at the moment - which I guess thay can afford to do when they've got some great products.

Elspeth