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Do I have to notify lender about job change before completion?
missingsummer
Posts: 6 Forumite
Hi everyone, I'm new here and would be very grateful for your advice..
I am a first time buyer and in the process of purchasing a flat on my own. I have 40% deposit, have worked for the current employer for 6 years. I have applied for mortgage with Natwest who is also my main bank. Mortgage has been approved subject to survey, the survey was done last week. I have not seen the report yet but if no problem I expect to receive a formal offer soon.
It was all going ok until I received a job offer from a different employer. A better job with better salary in the same industry, permanent position but 6 months probation period. I am handing in notice on Monday so in a month time I will be starting a new job. But the conveyancing process so far has been quite slow and I can't see exchanging contracts, let alone completing, anytime soon...:(
Now, I know that changing jobs right now is a bad idea. But this is a great opportunity for me and I really have to take it. So my question is do I have to tell the bank about this? Even though I will be continuously working and it should not affect my ability to repay mortgage? I heard Natwest does not approve mortgages for borrowers who are still in probation period. Does anyone know that is true?
I could either 1. tell the bank and if they say no speak to a broker to find another lender (hopefully there are lenders who are willing to lend me in my situation). 2. not tell the bank and ask my current employer to keep quiet about me leaving if the bank ever calls to check between now and completion. I strongly feel I have to tell the bank, which seems the right thing to do..
What do you think?? Thank you for reading and I would really appreciate your advice..
I am a first time buyer and in the process of purchasing a flat on my own. I have 40% deposit, have worked for the current employer for 6 years. I have applied for mortgage with Natwest who is also my main bank. Mortgage has been approved subject to survey, the survey was done last week. I have not seen the report yet but if no problem I expect to receive a formal offer soon.
It was all going ok until I received a job offer from a different employer. A better job with better salary in the same industry, permanent position but 6 months probation period. I am handing in notice on Monday so in a month time I will be starting a new job. But the conveyancing process so far has been quite slow and I can't see exchanging contracts, let alone completing, anytime soon...:(
Now, I know that changing jobs right now is a bad idea. But this is a great opportunity for me and I really have to take it. So my question is do I have to tell the bank about this? Even though I will be continuously working and it should not affect my ability to repay mortgage? I heard Natwest does not approve mortgages for borrowers who are still in probation period. Does anyone know that is true?
I could either 1. tell the bank and if they say no speak to a broker to find another lender (hopefully there are lenders who are willing to lend me in my situation). 2. not tell the bank and ask my current employer to keep quiet about me leaving if the bank ever calls to check between now and completion. I strongly feel I have to tell the bank, which seems the right thing to do..
What do you think?? Thank you for reading and I would really appreciate your advice..
0
Comments
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You/Your conveyencer, are duty bound to advise the lender of any material changes that may affect their offer.
Your changing job (albeit for an increased salary etc), is a material change, and an issue due to the probabtionary period.
However, if this new role is the the same as your present one, the UWs may be more akin to allowing this to proceed.
If its a complete change of career, then the 6mth probationary period will affect the current mortgage offer, which may be withdrawn by the lender.
It the lender discovers your change of employment before completion (ad hoc uw checks), and you have not advised them, you will be guilty of non-disclosure and again your offer will be withdrawn, without the facility to represent at a later date (ie - on the completion of your probationary period).
Hope this helps
Holly0 -
As H says, the mortgage offer would be subject to no changes in your circumstances.
I have known it to swing opposite to your position whereby redundancy was the issue..thereforwe until new employment was found the offer was withdrawn.
Holly is spot on....tell them. It may he a slight ball ache going through underwriters....but you'd rather do that than them spot check your case 3 days before completion.0 -
I think the fact you are asking here means you know the answer.....0
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Holly, Simon, thank you both so much for your reply. I will certainly take your advice and call the bank on Monday. Will let you know the outcome next week...
Do you happen to know any lenders who are happy to lend to people in their probation period?0 -
I could name 5, but ask one of the brokers on here....they'll be able to tell you in minutes by looking at lending policies online.
Approach your current lender first as you say.0 -
Halifax and nationwide accept people new into jobs as long as you can provide a letter from your employer, mine just stated that I was employed by them, start date, position and salary.
Hope that helps
And congratulations on the new job!!:T:T2019 Totals: Savings: £929.53 / Mortgage OP - £746.32
Grocery challange April: £130.17of £500 target remaining0 -
Thanks Laura!
So I called the bank this morning and the lady I spoke to told me that as long as it is a similar role with same or better income the job change will not affect my application because by the time I start my new job I will have the formal morgage offer. She didn't even ask for my new employer details or refer my case to anyone else (much to my surprise). I am very, very relieved and I can now move on and look forward to the move and new job : ))0 -
That's good news!2019 Totals: Savings: £929.53 / Mortgage OP - £746.32
Grocery challange April: £130.17of £500 target remaining0 -
Was the lady a mortgage unit clerk/in house mge adviser - or just a branch clerk who is assuming it won't be an issue ?
Did you get her name and position, so that you can make reference to her advice, if the UWs start beggering about re your change of job pre issue of offer.
Just don't want you to have any issues, and be told "well she wasn't in a position to have said that, or the information she gave was incorrect (due to her not being aware of the mge uw process".
As its a similar position to your existing role , I can't see any real issues re the probationary period (as said in my earlier post), but I just want to make sure that the indvidual you spoke to had the knowledge and authority to have agreed ok ... as her statement "you'll already have you offer when you change" isn't really the point, a change of employment is a material change, which we want okay'ed by their uw's.
Sorry to be a sourpuss ... but I've been in the game a long time ... so know that sometimes the left hand doesn't know what the right's doing !!
Hope this helps (and is not meant to worry you !)
Holly0 -
Holly - I was actually worried about that as well.. the person I spoke to was one of their mortgage team (though I don't know her title). I gave her my mortgage reference# and went through security questions so she should've had the information about my application. I have to say she sounded quite confident even after I asked a few times if she was sure.
I noted today's date and the time of the telephone conversation but not her name.. I believe they record conversations so hopefully they will be able to check what was said later if needed.
Should I call again tomorrow or leave it as I did what I had to do.. I don't know if I can take this stress anymore...:eek:0
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