Is it illegal to get a mortgage without informing them of redundancy???

Rooeydoo

Hi folks,

We're aware of the risks of having a mortgage when without work but I was wondering if it's actually illegal to get a mortgage (we're 1st time buyers) without telling the lender about redundancy???

Background info if it helps - we have a 25% deposit and have almost the same amount of money coming in redundancy payment in December so will be able to pay off another good amount with that, keeping aside some to keep us going if work cannot be found immediately as well as that we have good savings, no debts, loans, credit cards, hire purchases etc.

We have been told by a mortgage advisor off record that you don't have to legally inform them if the mortgage is got when still in employment but I'd really appreciate if someone could confirm this either way and any advice....

Many thanks

Rooeydoo

Let_Us_See

Time to put your crash helmet on as the doom and gloom merchants will love this post.

Rooeydoo

Thank you, I am prepared for that, we really don't have a massive choice and would really rather not rent when we know we'll be able to afford this way. We want to save money not waste it on rent, iff possible!

amnblog

Your mortgage broker has just encouraged you to commit mortgage fraud.

What is the plan for paying the mortgage following redundancy?

Rooeydoo

This is why I am posting as I was wondering if it's legal or would be classed as fraud. I would assume that it's a legally binding document and would expect you to say you know of no reason why you'd be unable to keep up the payments, albeit we know we will be able to. The person who gave the advice isn't arranging the mortgage. After redundancy we will have over £20k not including savings, so we would use that to keep us going. Work is in the pipeline but nothing confirmed and won't be for a while but we will need a home by December. Appreciate any advice.

Thanks

amnblog

Dont buy if your job is going away shortly.

Waituntil your employment situation is resolved.

Anyone who advises you otherwise needs locking up.

HappyMJ

Rooeydoo wrote: »

Hi folks,

We're aware of the risks of having a mortgage when without work but I was wondering if it's actually illegal to get a mortgage (we're 1st time buyers) without telling the lender about redundancy???

Background info if it helps - we have a 25% deposit and have almost the same amount of money coming in redundancy payment in December so will be able to pay off another good amount with that, keeping aside some to keep us going if work cannot be found immediately as well as that we have good savings, no debts, loans, credit cards, hire purchases etc.

We have been told by a mortgage advisor off record that you don't have to legally inform them if the mortgage is got when still in employment but I'd really appreciate if someone could confirm this either way and any advice....

Many thanks

Rooeydoo

If you have been made redundant then yes you have to tell them...legally it could be obtaining financial advantage by deception.

If redundancies haven't been announced yet and therefore you aren't sure if you are one of them then you do not.

I really wouldn't be jumping into a mortgage without a financial backup such as a job. The penalties for late payments and repossession could equal the deposit you have made on the house and you lose everything.

When you do get the payment in December I personally would just live off it making the minimum repayments whilst desperately looking for more work. You can get 6 months of JSA before that stops.

It really depends on your own financial situation. Could you get a lodger in to help pay the mortgage? How easy is to get a job? Any job? What will it pay compared to the job you have now?

Rooeydoo

Thanks. I still will have an income, it's my other half being made redundant. The mortgage will be in both our names. Being there is still an income would it be fraud? Putting aside whether it's sensible or not if we don't tell them that my partner has been made redundant, bearing in mind we still have a guaranteed income from me do they legally have to know?

Job wise from various reliable sources we've been advised that it will be fairly easy to get a new job. And its highly likely from all we've looked into, that the wage will be more than he's on now.

I know that you never know what may happen in the future but I'm more concerned about the legal side of this than financially how we'll be after the redundancy.

Hope I'm making sense, this is all new to me.

Thanks

holly_hobby

I'm afraid I may be one of the doom and gloom gang .... but thats often because we consider both the pro's and con's of any situ, and (hopefully) provide a balanced response that will keep you on the right side of the street.

IF YOU have not been told that YOU will be made redundant, and at the moment it is just speculation on your part, given the current situation at your place of works ... then not revealling this isn't strictly non-disclosure.

HOWEVER (and if the amount of borrowing is based on your joint income), IF you have been formally advised and do know your job has gone, with a date of exit etc - then yes to not reveal this as part of your application, would be classed as non-disclosure of a material fact (and used against you in any resulting possession hearing). Which actually may be taken out of your hands if they elect to request an employers reference as part of the Underwriting process (esp if its in the public domain regarding the downscale of workforce).

Anyhoo, you have the basis of when and why its important to reveal the info, how YOU choose to play this is up to you (inc how you will manage the mge following this event, as ASU won't pay out due to prior notification of job loss) ... as if the doo doo hits the fan, your adviser will leave you swinging, and claim no knowledge of either the redundancy issue, or advising you to conceal its existance.

Hope this helps

Holly x

amnblog

I thought the OP said redundancy money was coming in December.

Rooeydoo

Yes, the money is definitely coming in December.