Change of job during mortgage application - help!

newmortgage

Hi all

I am new to this site and have trawled through the forums to find a answer similar to my current issue.

I have applied for a ftb mortgage - everything has gone okay so far. I was in my previous job for 6 years and left end of December and was due to start with my new employer on 6th of Jan - the lender was okay with this and only asked to see contract of employment from my new employer which I sent to them. However, as I had applied for a number of jobs and although I had a concrete offer from the employer I was due to start with in the end I decided not to take up the position with them and instead took a position with another employer as the salary/prospects were a lot better.

The lender has wrote to me today stating they cannot proceed to offer until I send them a bank statement showing salary credit from new employer and wage slip.

I can send them the bank statement and wage slip however it won't be from the employer they thought I was starting my job with. I don't know what to do.

I am know panicking as I may end up getting declined for the mortgage.

Any help or advice on how I should proceed would be appreciated.

Thanking all in advance.

Gary

holly_hobby

You need to advise them of the change of employer as this is a material change to the application - if the salary is the same or more than before, and there is no probabtionary period (or if there is you're in the same or similar industry and position), then you shoudl be ok.

Don't panic, but you must reveal this to them if you've not yet completed.

Hope this helps

Holly x

betmunch

I dont see how you cannot know what to do.

The only option you have is to tell the lender what happened and send the proof of the new employment.

If this job is unacceptable then they will decline you, however if you do nothing they will decline you.

Why do you think taking a better job with better prospects is going to be worse than the one they thought you were taking?

newmortgage

holly_hobby wrote: »

You need to advise them of the change of employer as this is a material change to the application - if the salary is the same or more than before, and there is no probabtionary period (or if there is you're in the same or similar industry and position), then you shoudl be ok.

Don't panic, but you must reveal this to them if you've not yet completed.

Hope this helps

Holly x

Thank you for your quick response.

Salary is slightly more and there is no probationary period. And yes the position is the same and similar industry.

I am just worried because the lender may think I am only telling them this new information as they have wrote asking for the bank statement showing my salary from my new employer and wage slip before offer can be made - really I should have told them as soon I knew I was not going to commence employment with who I said I was. Could this be seen as me trying to hide something? I don't want to get myself in to any trouble legally.

Maybe I am being overly panicky for nothing but I don't want to jeopardise my chances of buying my first home.

holly_hobby

No I completely understand.

But, if the salary is not lower, and there is no probationary period (which the employer IS happy to confirm if reqd), then really there is no basis to suggest your non-disclosure was to any deliberate deception, but in reality as a FTB, and as you suggest, it could be reasoned as being a simple oversight due to your unfamilarity with proceedings.

I don't believe that it will cause too many issues (given affordabilility hasn't been negatively affected by the change and nature of position), IF you reveal this pre completion - which really must be your next step.

Hope this helps put your mind at rest.

Try not to worry

Holly xx

ethank

Holly is giving you good advice. If you demonstrate that you have nothing to hide then lenders will generally act reasonably. If you try to hide something from them, and they find out, they will treat it potentially as fraud.

newmortgage

Update

Received a letter from the lender today advising as mortgage app has been cancelled as it is a change of circumstances.

I rang them up straightway to clarify that I had not started employment with the original employer I had an offer from and it was merely a case of me accepting a better offer on the exact same terms of employment. The advisor said decision was made by underwriter and cannot be changed - I can write to appeal.

Gutted - is an understatement

holly_hobby

They only thing you can now do (as technically they're looking at this as non-disclosure) is to demonstrate that the lateness in your advising the job change, was due to an innocent oversight (although really you may be stretching it IMHO ;-( , and just as importantly you need to demonstrate to them that THEIR risk exposure has not increased by the amendment to your employer, position etc ....

IF as I say basic income is the same or higher than that originally assessed ok, and there is no probationary period etc you may swing a reverse .... but please be aware that even if there is no malice intended or proven from your side, the UW can still refuse to revise their decline - its their mandate and their choice, as really the way in which you've handled this (which I know you say not from any underhand motive from your side), will have made them a tad nervous exasperated by your FTB (no mge history status), and they may well be wondering what else you have have "forgotten" to inform them about, thats yet to materalise .... especially if you have a small'ish deposit ...

The only other option if the UW won't reconsider, is to apply to an alternative lender, and subject to min employment periods reqd etc, take it from there ( you may want to use a broker whom can discuss with their BDM directly, the reason for your decline, to help smooth over this blip wout it impacting further).

Anyhoo, lesson learned I feel, its a learning curve and you may have to delay pch for a little while longer ...

Hope this helps ... and sorry for your decline, but it wasn't wholly unexpected, buy possibly a little harsh (depending upon the other factors of the case).

Holly x

xxxhedges1

Not sure if I should be starting a new thread fir this, but the situation sounds quite similar to mine.

I've been verbally offered a job, with a much better salary, working conditions etc. Originally I would have been starting after completing, but the completion date has been pushed back, and may be pushed back further. Originally I had to supply 3 months pay slips for my current job. My question is, if I accept the job and notify the lender, will they automatically reject me because I can't supply the 3 payslips? I haven't exchanged yet, in case anyone is wondering.

Thanks.

newmortgage

hedges1 wrote: »

Not sure if I should be starting a new thread fir this, but the situation sounds quite similar to mine.

I've been verbally offered a job, with a much better salary, working conditions etc. Originally I would have been starting after completing, but the completion date has been pushed back, and may be pushed back further. Originally I had to supply 3 months pay slips for my current job. My question is, if I accept the job and notify the lender, will they automatically reject me because I can't supply the 3 payslips? I haven't exchanged yet, in case anyone is wondering.

Thanks.

Just out of interest who is your lender?

Mine was Leeds bs

holly_hobby

hedges1 wrote: »

Not sure if I should be starting a new thread fir this, but the situation sounds quite similar to mine.

I've been verbally offered a job, with a much better salary, working conditions etc. Originally I would have been starting after completing, but the completion date has been pushed back, and may be pushed back further. Originally I had to supply 3 months pay slips for my current job. My question is, if I accept the job and notify the lender, will they automatically reject me because I can't supply the 3 payslips? I haven't exchanged yet, in case anyone is wondering.

Thanks.

If you change employer this is a significant material to the application, and the initial offer that you have recd (although i note you're yet to exchange) will be witdraw, your case re-underwritten, and a new 1 issued (fingers crossed).

If you are going to accept this role (and i would get a formal offer and start date etc) before you complete (even it doesn't actually commence until after your completion date) you have a legal responsibility to advsie the lender of this - as soon as you have accepted the position, and you are wholly intending to leave the employment your application was originally assesseed under.

If you do this, and there is no negative affect to your basic salary, and no probation period (or if so you are in the same/similar role and same industry), it should be ok (sujbect to any other status changes).

Please DO NOT exchange until you have done this ... and have your lenders agreement that thety are happy to proceed in full awareness of the employment change.

Once you exchange you are legally contracted to pch the property, so pulling out with the vendors agreement may be very costly, and if there is a chain, well you'll be causing heartache and costs for others too, if you dont advise of the change, the lender performs an adhoc status assessment (which they can do right upto completion), and as per our friend about, pull the rug for non-disclosure.

If you have a broker, feed it through them, so they can present the change in the best possible light to obtain UW sign off (but even they can't perform miracles), if no broker, make sure you have all your new job details to hand and contact the lender (or go into local branch), as they will want to verify the position, basic salary, start date and any probationay period directly with them. (so you may want to give you new employer/their HR dept, the heads up if thats the case)

But I can't stress strongly enough ... please if you do take the job, tell the lender asap as you know the change is going to happen ... it may be a case of by the time you complete any min employment period has also passed ... but you MUST tell them (as you can see from the situ our OP has sadly ended up in, just what can happen).

Hope this helps ... wish you well in your new home and new position (if you accept it).

Holly xx