Job is Threatened - Do I Have to Declare This Before Remortgaging?

mrobsessed

opinions4u wrote: »

If there is formal notification of your business area being at risk of redundancies then this should be mentioned and will make a change of lender unlikely.

It has been formally announced.

I'm wondering if my employer is obliged to mention this when the lender rings up to check on my income and status of employment.

Does anyone know?

mrobsessed

zzzLazyDaisy wrote: »

I also don't know how often lenders actually contact employers

I'd like to know this, and if the threat to my job is confidential information. I know that lenders will certainly check my wage and that I'm in a full time job for over two years, but I don't know if they will ask about the job being secure in the future, or indeed if my employer will simply mention it as a matter of course.

I'm thinking that I may have to allow full disclosure of my job details to the prospective lender as part of the application process.

Thrugelmir

mrobsessed wrote: »

I'm wondering if my employer is obliged to mention this when the lender rings up to check on my income and status of employment.

Does anyone know?

If employers didn't. Then would make references worthless and defeat the object of obtaining them.

Goldiegirl

If an employer was asked to confirm your income they would also mention that you were being made redundant, as it is a fact that would affect your mortgage. In most cases, the lenders letter would ask this question.

dimbo61

Why not wait until april and overpay the current mortgage if you can

kingstreet

A typical employer's reference requests;-

- duration of employment
- permanence
- income
- stability of employment/firm prospects.

The mortgage applicant signs a declaration allowing the lender to seek any information it sees fit in determining if the applicant is suitable for the mortgage amount requested.

mrobsessed

Goldiegirl wrote: »

If an employer was asked to confirm your income they would also mention that you were being made redundant, as it is a fact that would affect your mortgage. In most cases, the lenders letter would ask this question.

I haven't been made redundant yet but it is possible that my current role will cease to exist in a few months.

Thanks for everyone's advice - it has given me some food for thought.

mrobsessed

zzzLazyDaisy wrote: »

Your current lender is stuck with you, regardless of your changed circumstances, so it would be better for you to speak to your current provider and see what they can offer you. This can often be done over the phone with no survey/checks.

My current lender is also my bank where I have two accounts (current and savings), and I've had the mortgage since I got the house over 12 years ago. Does this help me make a switch without checks and is this still risky or considered to be insurance fraud?

At the moment my position is stable, and although I'd love to get a better deal, if there is a risk of the house being lost (together with 100k positive equity), I'm not going to risk it.

kingstreet

A new product from your existing lender requires no checks or status declarations. Your employment situation will not come up, so you will not have to make a potentially fraudulent declaration.

mrobsessed

kingstreet wrote: »

A new product from your existing lender requires no checks or status declarations. Your employment situation will not come up, so you will not have to make a potentially fraudulent declaration.

Thanks - this is looking like my only option. Does the 'no check' situation still apply if I want to extend the period of the loan from 13 yrs to, say, 15?