Mortgage audit between exchange and completion

ktbainbridge

Hello,

I have read lots of horror stories about mortgages getting re-audited between exchange and completion. Does anyone know in particular, if you were audited would the company RE-write to your employer? Our mortgage is with Natwest.

Thanks in advance for any help.

Senior_Paper_Monitor

Probably not - BUT not impossible.

Why is that of particular concern ?

kingstreet

In an audit, the lender can seek verification of any piece of information or documentation it holds.

If it has accepted payslips, it can request verification from the employer or HMRC to ensure the correct income is recorded.

ktbainbridge

There are rumours of upcoming redundancies at work but nothing official. I worry that something could have become offical by the time the (IF) a re-audit happens that it could ruin my chances. I know this will cause a lot of poepl to tell me to wait just incase but I am in an industry where it has been possible for a long time now. I have a long legnth of service and very good redundancy package which would cover the next three years of mortgage payments so financial actually paying for it is not a worry for me.

We were hoping to exchange and complete on the same date but now the seller is pushing for more time.

Basically my concern is that I could become at risk of redundancy and in event of a possible re-audit the bank (or whoever) may write to my employer and specifically ask if I am at risk of redundancy.

Hope this makes sense, and thanks for your responses so far.

Senior_Paper_Monitor

If it is rumours, you do do not have to do anything. In such circumstances I would not expect an employer to give any answer that indicates a likelihood of redundancies (my first thoughts would be that they would be acting incorrectly if they gave any such response prior to commencing the required consulation process).

If consultation process has commenced, and you are in any way affected, not only must you advise the lender but the lender must reply accordingly.

If your company is a large employer then it is my belive that many lenders monitor any announcements of potential redundancies and act accordingly.

Good advice is that you only make a major commitment such as a mortgage when you are confident of your financial future - but I accept that you probably as confident as most people anyway in the current environment and/or your employment line and that you are confident that you could cope with it - frankly that must be your decision.

There are a couple of threads running here which refer to the same day exchange/completion issue and in your circumstances in would probably make sense to do all possible to achieve this or have the minimum possible time between them.