Applying for a mortgage extension, so stressed :(

sunny_skies

Hi all ... I wonder if you can help with a bit of advice.

We are purchasing a property and are now very close to exchange as we have our draft contract and just sorting out the last few forms etc for signing and getting the bankers draft etc over.

AAARGH though, our mortgage offer exprires 4 June and we are only completing 15 July, so having noticed this I asked Monday last week for a mortgage extension.

I have changed jobs since the initial application for the mortgage - much higher salary, but in the same industry (ie a promotion but in a different organisation). Our MA said don't worry, it'll all be fine ... Today I hear that they need to POST a reference request to my employer!!!

I am furious as this will add on time. I can understand from the bank's perspective, which is why I ASKED so many times if the MA was sure. If we had known this we could have prepared our timings. However, we have handed in our notice on our lease (we were as sensible as I think was possible in the situation by waiting until about a week before the draft contract was sent out, but they vendor needed to complete mid-July) and I'm feeling incredibly vulnerable.

Am I over reacting? Do you think it will be fine? Are extensions generally granted? I am sooooo stressed you would not believe!!!!

:eek::mad::o:( etc ...

hazyjo

Can't believe the MA said not to disclose you'd changed jobs. That's madness! Or do you mean he said not to worry about getting the mortgage offer extension? Did you tell him you'd changed jobs, or only once you realised the deadline was looming? We did have a mortgage extension granted with YBS, but this is cutting it extremely fine and we were told to give plenty of notice (we did - thankfully the offer was extended from three months to six months). I'm really not sure how they'll look upon change of circumstances not being declared.

I don't see how they can't not deal with your current employer. Anyone might as well walk in off the street and say they earn whatever amount in whatever job. Of course it'll need checking.

Good luck.

Jx

sunny_skies

Hi hazyjo

I told him when we were applying for the mortgage that I had been offered another job, but that as I had 3 months notice at my previous job I was told it wouldn't matter. I guess that was assuming we would have exchanged before the mortgage offer ran out? Which in hindsight seems optimistic!

I was also told that as long as it's in the same industry and the same or higher salary I would be fine.

When I spoke to him last week about extending the mortgage he told me he had already mentioned this to NatWest, and they had said there would be no complications, they just wanted to see my pay cheque - which is why I'm pretty peeved that they now want a reference from my employer.

Very difficult to know what to do as we've already given our notice on our rent - I guess we will just need to hope it works out in time.

sunny_skies

(Just to confirm - I'm talking about extending the actual mortgage offer rather than the mortgage - not sure if this was a bit unclear!)

hazyjo

Have added 'offer' to mine... yep, I took it that the mortgage offer was expiring - and that's what we extended to six months. Think anyone else would get the gist too

Jx

sunny_skies

Okay

I knew this process would be stressful but I didn't think this stressful ... I was told we would hear back from the extension in max 72 hours - it's now a week and two days later and this is coming up ... The one MA told me on Monday they need a payslip and no further information as they just needed confirmation of salary, and now his colleague phones to say about the reference check ... So I have no idea what is going on really!!

hazyjo, how long did it take to extend the mortgage offer can you remember? OH is saying as there is 6 weeks to go until completion it should be fine ... But I'm worried the extension won't be granted even!

SuzieSue

I'm sure you were probably going to anyway, but you need to speak to your HR department and let them know how urgent it is that they reply to the reference request immediately, otherwise it will probably just sit in someone's in-tray for a few days. I would find out when the letter has been sent and then ring the HR department every day to ensure they have received it and replied to it.

sunny_skies

Thanks SuzieSue - a good suggestion - thankfully I already know how **long** it can take HR to get round to paperwork - so I've targetting the most efficient person I know and have let them know about it :A And they are right on board - although both her and the only other HR person is out tomorrow :mad: (Not that we are likely to get it before then!)

What really annoys me though is that the bank is refusing to email/fax the request - meaning it takes at least 2 days longer!!!

hazyjo

sunny_skies wrote: »

Okay

hazyjo, how long did it take to extend the mortgage offer can you remember? OH is saying as there is 6 weeks to go until completion it should be fine ... But I'm worried the extension won't be granted even!

Was more than a few days, less than two weeks. All a blur now... shoved it all to the back of my mind!

Our mortgage bod had to contact head office for approval - I think she put the 'case' forward. We were told we'd hear within a couple of days, I think, but I'm sure it was a lot longer than that. We were expecting it to be extended by a month, but she came back saying a three month extension had been granted. Did us a favour as a month wouldn't have been long enough! Took five months from offer to completion in the end due to unforeseen problems along the way. Will dig out emails tomorrow and see if I can get an idea on exact timescales.

Jx

ruggedtoast

You have had very poor advice from your ifa. It doesn't sound like he disclosed to the bank that you were working your notice when you applied. You are presumably still in your probation period at the new job which will probably have to be approved by the underwriters now. Thats a significant change in your circumstances that hadn't been disclosed, the bank are being quite reasonable all things considered.

At least this has come out now not due to some spot check after you'd exchanged.

sunny_skies

Aw thanks hazyjo :beer: that would be great if you could find how long it took. We have had a relatively easy time up till now, and yet our offer was accepted in February! It has been such a slow process.

I spoke with our MA and he has liaised with the bank and has agreed we can scan through my contract and email that over rather than wait for post to deliver reference request to HR, who are on holiday anyway. So I'm really hoping that we get the extension.

ruggedtoast - I agree, I'm not blaming the bank at all in this regard. I would much rather have had the bank aware of this right at the beginning so I knew what my position was - but my MA says he did speak with them. I'm hoping they don't have a problem with the change in jobs. From what I've heard - not just from the MA but from others, incl some people on this forum - changing jobs doesn't mean you won't get an extension or even a mortgage offer, if it is in the same industry and comes with same salary or increase (in my case it is a fairly substantial promotion). I guess anyone on a 3-month probation is as likely to be made redundant than someone who has passed probation, so the difference in risk on that score is only marginal, I would think (I would get one-month notice if made redundant on probation).

But phew ... I'm still very very stressed out I just really hope it works out.