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

amnblog

Then you have been notified of the redundancy and not notifying the lender puts you at risk legally.

Rooeydoo

Are employers references always asked for? We've not been informed that they're required or will be asked for.

We are having to move because of the redundancy so we've known about it proir to house hunting.

holly_hobby

Rooeydoo wrote: »

Are employers references always asked for? We've not been informed that they're required or will be asked for.

Not always asked for, but the lender will always reserve the right to do so.

EG - If they are aware of redundancies within the company or group, then yes they may well go for a ref to clarify if the workfoce changes will affect the info in the application.

Rooeydoo wrote: »

We are having to move because of the redundancy so we've known about it proir to house hunting.

So it is confirmed, and you were aware pre-application, that you are directly affected by job loss, which means that if its a joint mge app, with both employment and income submitted, assessed and reqd to support the mortgage applied for, you're playing with fire ..... you need to be aware that a mortgage offer may be withdrawn right up to completion, if non-disclosed info comes to light, with all non-refundable fees lost.

As I say, should the lender later become aware of this, and there is any future repossession hearing as a result of this loss of income, if the lender uses the non-disclosure issue in support of their petition, the Judge is less likely to agree to a suspension of order.

Your adviser, in suggesting concealment of the fact, is either unaware of the ramifications of his/her advice, or simply doesn't care as long as he gets his proc fee, because as I say, they'll deny all knowledge if the poop starts flying !

Hope this helps

Holly x

Rooeydoo

Thanks. Lots to think about. The advisor is a long term family friend who is getting no payment, we just asked her would a mortgage be do-able in our situation. :think:

Thrugelmir

Let_Us_See wrote: »

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

At least some people take the time and trouble to give a reasoned response. Adds far more value to the debate.

Cornucopia

What, if anything, have you told your Solicitor?

Rooeydoo

We've not spoken to one yet, we're waiting for the mortgage advisor to get back to us to confirm we'd get one, then we'll start the solicitor bit.

Thrugelmir

Rooeydoo wrote: »

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....

If you are aware of any material facts then these should be disclosed at the time of the application. When you sign any application form, whether it be for a mortgage, car insurance, life assurance, job application. You are stating that you are telling the truth. It's the other parties get out clause should you be found to be lying.

Easy to lie. More difficult to cope with the stress and worry. Should events turn against you. As any admission that you lied or intentionally deceived. Then the contract you signed will be voided. The other party has the power to cause you enormous damage to your credibility.

holly_hobby

Right so you're yet to actually go through the application process ....

The most pragmatic advice I can give, is to answer, truthfully, only the questions posed .... IF you are asked if there are any known material changes that will affect the application, then its sink or swim time buddy ....

Also just to shown I'm human, you may elect not to reveal the pending changes, the lender may not go for a reference (but if they do they'll decline on non-disclosure which will affect future apps, with a possible CIFAS* registration) and if you are able to maintain the mortgage, even after loss of 1 salary (albeit hopefully just temporarily), they may never ever find out about your actions ..... and you may come out of it unscathed.

Thats certainly a few times for fingers crossed ... but not altogether impossible (if I take my mge compliance hat off ) ... but certainly not advised (if I put it back on )

Hope to help, even if on occassion to some, it may seem that I cross T's for the sake of it .... its always intended for the OPs protection/benefit, and to help them understand the basics as to why there are issues with their enquiry :A.

Anyhoo chuck, wish you well ... with best wishes for your partners job hunt in 2014.

Holly xx

* CIFAS is an industry fraud register, which is utilised by financial institutions for financial applications but also in relation to employment applications (especially in financial svcs positions), accordingly to find yourself on it will certainly cause severe issues !

Rooeydoo

Thank you so much everyone, really appreciate all the advice. We're supposed to be hearing from the mortgage advisor on Monday but we have 2 more viewings tomorrow and an appointment with one of the estate agents mortgage advisors plus one with our bank next week so will see what they say, what the paperwork says. Fingers crossed and thanks again. x