Losing job after mortgage approval

Fletchasketch

Hi Everyone,


Hoping someone might be able to give me some advice on this one. Have just found out today that my job is going, I'm in the final stages of buying a property and have already had the agreement and provided all the documentation etc. I hope to exchange on the property within the next few weeks, so wondered if anyone had any thoughts on whether this would be an issue.


Before anyone says anything about the risks of taking on a mortgage without a job, I am aware of this, but it's actually quite common to move jobs a lot in my industry (IT). I'm just looking for advice on the mortgage situation please.


Thanks a lot

ACG

It will depend on the lender. None are going to let it complete unless you have a job in place. If you do get a job then it will come down to what the lenders stance is - ie through probationary, with the employer for 3-6 months etc.

Obviously you should be making the lender aware as your technically committing mortgage fraud if you complete without telling them.

Fletchasketch

well I will still technically be employed when I exchange, so surely that isn't commiting fraud?

kingstreet

The circumstances which determine the lender's decision to lend to you are changing. You are bound to disclose such changes. As a result your mortgage offer should be withdrawn.

Fletchasketch

kingstreet wrote: »

The circumstances which determine the lender's decision to lend to you are changing. You are bound to disclose such changes. As a result your mortgage offer should be withdrawn.

Okay, thanks for your advice. I am confident that I can get a job in before completion though. Are you honestly saying that in my place you would call the mortgage company and tell them to withdraw the offer, knowing that that would mean losing the property?

Goldiegirl

If it was me, I'd tell them - the declaration that you signed when applying for the mortgage probably says that you need to tell them of any major changes to your situation.

But I'd also be thinking did I really want to move house at such an uncertain time.

[Deleted User]

Fletchasketch wrote: »

Are you honestly saying that in my place you would call the mortgage company and tell them to withdraw the offer, knowing that that would mean losing the property?

I would. Otherwise you stand to lose your deposit if they audit your application between exchange and completion. Not to mention the fraud marker that would be out on your file.

Fletchasketch

Possibly not and I take your point. But I've been looking for a year for a property, have finally found one I like and had an offer accepted. With the London property market as it is, I think it's possible that I wouldn't find another property in my price range. There's also the fact that I'd lose all the costs put down so far, deposit, application fee and valuation cost.

ACG

Its down to you whether to risk it or not.

If i were in your position i would have to think twice (im not sure which way i would go) - being completely honest.

It falls on you, you know the potential outcomes now and if you do go ahead and get "found out" you did it knowing the risks.

Fletchasketch

ACG wrote: »

Its down to you whether to risk it or not.

If i were in your position i would have to think twice (im not sure which way i would go) - being completely honest.

It falls on you, you know the potential outcomes now and if you do go ahead and get "found out" you did it knowing the risks.

Yes I know and I appreciate your advice.


I suppose what I'm asking is how likely is that they would find out, and in the case that they did find out and I had another job, would it be an issue?

ACG

Likelihood of them finding out is probably quite slim - especially if you are still there at completion... but thats not to say they will not find out.

As to what will happen if you have another job, as i said it will depend on the lender. Have a look at their lending criteria for employment. Some say through probationary others say 3-6 months others just say to be employed.