Mortgage offer valid without job?

matty_hunt

Hi.
I wonder if someone could confirm for me....

If I get an offer for a remortgage, which I gather is valid for three months, but I become unemployed within the offer period (before I have accepted) can I still accept the offer or will the mortgage company withdraw the offer? Repayment isnt an issue, even if unemployed, the offer would be though.

Many thanks

_Andy_

Depends what is stated in your mortgage offer. For example some companies may say something like you're obliged to keep them informed of changes etc. Impossible to say for sure without knowing the wording.

Wh05apk

The offer will be based on affordability as when the application is/was submitted, any material changes such as unemployment should be notified to the lender, who will almost certainly then withdraw the offer.

zzzLazyDaisy

and remember that lenders can - and do - withdraw offers after exchange and before completion leaving you well and truly up the creek without a paddle!

Mrs_Z

Depends on your consciouness I guess. If you are absolutely confident that you can meet the repayments now and foreseeable future and are still happy to proceed with the offer, then I'd be inclined to keep quiet and go for it.

We recently remortgaged with HSBC and other half has now been made redundant (we knew it was on the cards, so thought better do it before) but as the repayments are not an issue, we have not told the lender. Equally, I don't expect OH to be unemployed for long either so informing the lender at every stage could be more hassle than it's worth.

At the end of the day, as long as the lender gets their money, that's all they'd be intersted in anyway and in essence that's the obligation you undertake when you sign up the contract.

(And by the way I'm not recommending anyone follow my example)

zzzLazyDaisy

Mrs_Z wrote: »

We recently remortgaged with HSBC and other half has now been made redundant (we knew it was on the cards, so thought better do it before)

That is an entirely different scenario from OP's situation, which (if I understand it correctly) is where the lender has made a mortgage offer, but the borrower then loses his job before the purchase is completed.

Mrs_Z

Well, yes and no -

When we made the application for the remortgage, we knew it was almost inevitable that my OH would be made redundant so you could argue that we obtained the loan on 'false pretenses' just as Matty Hunt would do by not disclosing to the lender that s/he now lost the income on which the mortgage offer was based on.

The actual event in our case took place after 1,5 months after completion.

matty_hunt

Thanks for the responses. Its another weekend of head scratching and number crunching then!

Meeper

If you have a mortgage offer, then you are made redundant and your income ceases prior to completion, you should absolutely inform the mortgage company of this matter. Furthermore, you shouldn't be proceeding with the purchase regardless if you have not got the means to pay for it.

You mention that paying the mortgage wouldn't be an issue. Why is this?

zzzLazyDaisy

Mrs_Z wrote: »

Well, yes and no -

When we made the application for the remortgage, we knew it was almost inevitable that my OH would be made redundant so you could argue that we obtained the loan on 'false pretenses' just as Matty Hunt would do by not disclosing to the lender that s/he now lost the income on which the mortgage offer was based on.

The actual event in our case took place after 1,5 months after completion.

That may be so. But in practical terms it would be too late for the lender to withdraw its offer in your case... whereas if the lender withdraws the mortgage offer after exchange but before completion, that leaves OP with a legal obligation to complete on the purchase and at the very least losing his deposit, and at worst becoming involved in expensive legal proceedings.

Yorkie1

NB. OP is asking about a remortgage, not a purchase involving sale and completion.