Moving job

Any

Hi guys,

Can please anyone tell me how much are banks scared of lending to a person who just moved job?

In this case, one of the couple who wants to move to a new house is looking for a new job. As this might take a while, their house might get sold in the middle of moving job process...

Would the bank withdraw the mortgage offer, even if it was better paid job, because of probationary period etc?

Thank you

ACG

It depends on the lender.

Some lenders insist that you have been with the current employer for 3, 6 or 12 months. Others just insist on continuous employment for 3, 6 or 12 months other say out of probation period.

Probably best to find a lender that says continuous employment just incase there is an overlap maybe?

Any

Thank you. I was just wondering whether those even exist or whether it is necessary to put the job search on hold.

Currently my friends are with Yorkshire building society and they have fixes mortgage for another 2 years so would be porting that and need another 30k for the bigger house...

ACG

They would really need to speak to YBS to check the criteria as a port is classed as a new application - so they would need to meet YBS current criteria.

Accord (who are the intermediary part of YBS) say they have no minimum requirement, all they will request is 1 of the last 2 payslips and another 2 of the last 5... but Accord seem to make rules up as they go along. I cant comment on YBS specifically but i would be surprised if it were any different to Accord.

Thrugelmir

Any wrote: »

Hi guys,

Can please anyone tell me how much are banks scared of lending to a person who just moved job?

Not a question of being scared. More the risk factor. As there no certainty in life. Mortgaging lending is priced as being low risk. Correspondingly underwriting criteria is high as a consequence.

Any

Thrugelmir wrote: »

Not a question of being scared. More the risk factor. As there no certainty in life. Mortgaging lending is priced as being low risk. Correspondingly underwriting criteria is high as a consequence.

I understand concept of risk.
However you can get dismissed for no obvious reason within the first 2 years now unless you can prove discrimination.. Not much different risk then if you are changing jobs.
So I wanted to know what the normal procedures would be for this situation.

Any

ACG wrote: »

They would really need to speak to YBS to check the criteria as a port is classed as a new application - so they would need to meet YBS current criteria.

Interesting... How would that affect early repayment fee? I assumend that as long as the house had the correct value they just port existing mortgage with no problems.. But if they will score you from fresh, will they still have to pay early repayment fee if they decide to go with someone else?

Thank you very much by the way, that is great help, we (I and they) don't have much experience with the mortgages as they lived in their house for a very long time.

ACG

ERCs arnt applicable as you/they are not repaying the mortgage... theyre just moving it.

Its treated as a new app in the sense that they have to pass the current criteria for the existing mortgage... mental in some ways but makes sense in others, although it is standard across the lenders.