Impact of new job (and lower salary) on mortgage offer

JennyB2

Morning all

Wondering if anyone can offer up any opinions on the situation I find myself in.

My partner and I have had an offer accepted on what is our perfect house, and a couple of days ago had our final mortgage offer come through which we are ready to accept. So far so good...

The complicated bit is that I am potentially going to be offered a new job next week that would be a drop in income of around £8000 pa. The job I might be offered is permanent and is a similar field to what I work in now. Whilst my current job pays well and is secure, I don't see it as a long-term option and the new job is a much more exciting prospect and takes my career in the direction I want to go in; hence why I am considering the decrease in salary.

My question really is am I stupid for even considering the new job? Getting the house is our priority at the moment and I wouldn't want to do anything that would risk us losing the mortgage.

With that in mind, I'm not sure about next steps. I'm not willing to go down the route of not telling the lender about the new job, as that could come back to bite if they find out later down the line. Is there anyway that the lender would be able to tell me whether the mortgage offer would still be valid with the new (lower) salary? Essentially, if it means our mortgage will be withdrawn, then I won't take the new job and will stay where I am.

Looking at what I'd be taking home each month in the new job, we would still easily be able to afford the mortgage payments and all our other living expenses, but it's whether the lender agrees with this. I've just done a quick check on their online lending calculator putting in what would be our new salaries, and it came out saying they would lend more than what we need, but obviously that is not a particularly detailed process.

Any thoughts on options either way would be much appreciated. Thanks!

kingstreet

Is there a probationary period and if there is, does your lender lend to those in one?

JennyB2

Good question - I have raised that with the potential employer, although I can only assume there will be a probationary period as it is pretty standard practice when taking on someone new.

That in itself may rule out the chance of keeping the mortgage offer I guess?

kingstreet

It depends on your lender.

Some will accept those in a probationary period, some won't.

You need to establish what your new employer intends, then run it past your lender, possibly anonymously at first, to gauge the likely impact.

JennyB2

Just checked and the new job would have 5 months probation. Lender is HSBC and from what I've read they are one of the strictest out there so likely to be a no-go.

I feel like I may as well ring them and discuss with someone, but have a feeling they won't be able to tell me yes or no either way and I'd still end up taking a massive gamble if I were to accept the job.

If I were to ring and discuss the situation, presumably having that conversation wouldn't impact the offer we have on the table?

kingstreet

It might if they can identify you.

A lender can withdraw an offer if it believes you are witholding a material change in circumstances, despite the change actually being acceptable to them after all.

zarf2007

JennyB2 wrote: »

Morning all

Wondering if anyone can offer up any opinions on the situation I find myself in.

My partner and I have had an offer accepted on what is our perfect house, and a couple of days ago had our final mortgage offer come through which we are ready to accept. So far so good...

The complicated bit is that I am potentially going to be offered a new job next week that would be a drop in income of around £8000 pa. The job I might be offered is permanent and is a similar field to what I work in now. Whilst my current job pays well and is secure, I don't see it as a long-term option and the new job is a much more exciting prospect and takes my career in the direction I want to go in; hence why I am considering the decrease in salary.

My question really is am I stupid for even considering the new job? Getting the house is our priority at the moment and I wouldn't want to do anything that would risk us losing the mortgage.

With that in mind, I'm not sure about next steps. I'm not willing to go down the route of not telling the lender about the new job, as that could come back to bite if they find out later down the line. Is there anyway that the lender would be able to tell me whether the mortgage offer would still be valid with the new (lower) salary? Essentially, if it means our mortgage will be withdrawn, then I won't take the new job and will stay where I am.

Looking at what I'd be taking home each month in the new job, we would still easily be able to afford the mortgage payments and all our other living expenses, but it's whether the lender agrees with this. I've just done a quick check on their online lending calculator putting in what would be our new salaries, and it came out saying they would lend more than what we need, but obviously that is not a particularly detailed process.

Any thoughts on options either way would be much appreciated. Thanks!

while you are keen for this job i would personally let it pass...get the new home and then look around for a similar job.....definitely do not talk to the lender and identify yourself or you will likely have the offer withdrawn......remember with MMR they would look at your smaller salary and the impact of 5-7% interest rates so i guess it really is the house or job, which is more important to you?

life is full of tough decisions, this is one of them.

AdrenalineJunkie22

It might be worth contacting the new company and say you are currently taking out a mortgage so cannot currenctly switch jobs but you will be in a place to move jobs after completion.

I had the same situation and I told the new company the same and they said to call back when alls done and then come in for a interview

New job means probation period and insecurity from the mortgage providers point of view so definitely worth holding off