Mortgage approval in principle Vs. approval

Davidee

Hello,

I live in Scotland and have had a mortgage approved in principle. I will now offer on a house and apply for a mortgage.

I'm also planning on changing jobs. If I resign before my mortgage is approved I probably won't get one.

If I wait until my mortgage is approved and then resign before my move in date will the lender be able to take back their offer? Or once it is approved is that final regardless of whether I have moved in or not?

I really want to resign from my current job as soon as possible, before I move into the new house.

Thanks in advance.

Thrugelmir

The lender should be informed of any change of circumstances prior to completion. Those are the terms you are agreeing to if you read the small print.

amnblog

Lots of ways to trip up with this one.

Safest route if you have a new job offer is to use a lender that will handle the new circumstances and release the mortgage funds without an issue.

One for a mortgage broker.

Davidee

amnblog wrote: »

Lots of ways to trip up with this one.

Safest route if you have a new job offer is to use a lender that will handle the new circumstances and release the mortgage funds without an issue.

One for a mortgage broker.

Thanks. Any mortgage brokers on here? I just want to jack the job in once my mortgage is approved but I am of course worried that they might be able to take their offer back and refuse to release the funds if I do that. Can they do that?

I currently work offshore and will be moving to a different city.

hillcats

Will you have another job to step straight into, otherwise how will you service this debt?
What about any probational period, I don't think lenders like this time frame until some kind of job security is reached...

amnblog

Davidee wrote: »

Thanks. Any mortgage brokers on here? I just want to jack the job in once my mortgage is approved but I am of course worried that they might be able to take their offer back and refuse to release the funds if I do that. Can they do that?

I currently work offshore and will be moving to a different city.

All of us that are brokers state so in our signature.

Davidee

hillcats wrote: »

Will you have another job to step straight into, otherwise how will you service this debt?
What about any probational period, I don't think lenders like this time frame until some kind of job security is reached...

Probationary period? I've never heard of this.

I won't have another job to step into. I will pay the mortgage with savings until I get one, I have just over a years worth of wages saved.

I had just assumed that once your mortgage is approved that was it, the funds would be released and then I had a doubt so I thought I should ask.

hillcats

Davidee wrote: »

Probationary period? I've never heard of this.

An employer will usually stipulate a set time period to see if you are suitable for the job and may well deem that you are not and may decide to terminate your contract... hence Mortgage lenders want to see long term stable employment history.

Davidee wrote: »

I won't have another job to step into. I will pay the mortgage with savings until I get one, I have just over a years worth of wages saved.

So, what happens after moving into your next house if things start to go wrong... the roof needs replacing (4k) then two months later the boiler packs up (2k) then you car suffers a catastrophic failure of some kind and repairs run into thousands again... your savings may not last that long...
What would happen if you have used your savings and you are unable to find employment... you are thinking about big risks!

Davidee wrote: »

I had just assumed that once your mortgage is approved that was it, the funds would be released and then I had a doubt so I thought I should ask.

Do you intend to pay back this mortgage within twelve months ? Would you lend to somebody if they had no "real income" and no realistic way of paying off the debt - I certainly wouldn't and I'm no lender...

I'd urge you to think very carefully - act in haste and repent at leisure!

pmd123

Apologies for butting in to someone else's thread, but just a further quick question on this subject...

If you were to get a better job within the same company, could there be any issues mortgage wise (mortgage offer but not exchanged contracts yet), assuming permanent position, no probationary period, and over 2 years employment with them?

amnblog

pmd123 wrote: »

Apologies for butting in to someone else's thread, but just a further quick question on this subject...

If you were to get a better job within the same company, could there be any issues mortgage wise (mortgage offer but not exchanged contracts yet), assuming permanent position, no probationary period, and over 2 years employment with them?

You would not expect that to be an issue.

buglawton

When you sign declarations in the mortgage application, isn't one question "do you expect any change of financial circumstances in the near future?". Is there was such a question, how did OP answer?

Handing in your notice voluntarily after saying yes to a question like that might invalidate the mortgage and allow the lender to repossess.