Buying and job under threat?

cloo

Hoping this will just be a theoretical question, but if a buyer gets given notice for their job, will this have to be disclosed/get back to the lender they're applying for a mortgage with?

Or will things be OK provided the seller is not unemployed before they draw down the mortgage?

stator

They MUST tell the lender if it happens at any time before the mortgage money is paid.

cloo

OK, if that's they case, are they likely to say 'sorry, forget it' or wait until you get proof of a new job before they draw down, or might they look at your savings or allow a guarantor?

I know that may be how long is a piece of string, but we're not looking to borrow a great deal more than we are borrowing now and we do have various financial support available to us, so it would be gutting for everything to fall apart because maybe someone will be unemployed, or because someone's unemployed for a short time at the wrong moment.

somethingcorporate

If you have notice you are being let go and don't have another job then I would expect a lender to quickly disregard your income in the lending decision.

As per the above you have to let them know.

Missko

Error.
Error.

cloo

Does anyone know of any links to info about this online... with no disrespect to everyone here, when I try to find the right phrase to describe the issue, all I come across is web forum discussion and it would be good to have a more 'official' source to refer to. I've tried googling 'given notice while applying for mortgage' and 'might lose job and have mortgage application out', but nothing seems to yield a solid reference.

fairy_lights

Hypothetically, what would happen if the op didn't tell their mortgage lender? Would they have other ways of finding out?

cloo

It sounds as though in the USA they check with employers when giving mortgages, though I don't know if it's the case here. All the same it seems risky and like there are various ways they could find out something is up.

cloo

NB, when I say the buyer here, I mean one of the buyers (albeit the one with the larger income) and not FTBs, but people who are putting down a significant deposit on their next place (c72%) because they have sold one property already before selling the current. I don't know if that improves matters at all.

hcb42

It will be in the terms of borrowing I imagine.

If indeed you have 72% deposit, then it might be less of an issue.

Or you can risk it, hope they don't check and scupper you if they do

Modgepodge

This happened to my brother in law - they'd literally just offered on a house when his company went under and he was given no notice, just out a job. They phoned the mortgage lender who had no interest whatsoever as long as they had payslips for the previous X months! Luckily he got a (better paid) job soon after so it was fine anyway.Likewise a friend of mine was on a temporary contract at work and the lender didn't care as long as she had 3 payslips to show. Again, luckily she got a new contract.

The first story was before the lending rules got tighter, but the other was only a few months ago.