At risk of redundancy between exchange and completion

Nike79

She is still employed and the redundancy hasn't happened yet.

I agree with the previous posters that you shouldn't raise this with the lender.

Enjoy your new home!

binky21

Echoing Noctu's point. I changed jobs between Exchange and Completion (new build, so quite a long period of time) and the lender didn't make any additional checks. I made myself sick with worry over nothing, no reason for you to do the same. Especially when nothing has actually happened!

Rustyman33

HouseBuyer77 wrote: »

The consequences of failing to complete are dire. Even if your lender would want to know she's at risk of redundancy the potential fall out of withholding this information is almost certainly better than not completing.

Make sure you have a plan to pay the mortgage without her salary (what costs can you cut back, could you take in a lodger?). Once you're in the house and paying the mortgage the lender is unlikely to conduct any spot checks (why would they bother if all is fine on their end?).

Many thanks all, your responses are putting me at ease. If only slightly, I'm the worrying type!

HouseBuyer77: We have planned to take in a close friend of mine as a lodger (licensee, not a tenant) the whole time. I've taken out a home insurance policy that covers this circumstance, and he has his own cover for his personal contents. What I haven't yet done is told my lender, but right now I'm thinking we should lay low until we complete. Does anybody have any experience on dealing with lodgers and the mortgage lender?

Another thing I'd like to mention: as part of applying for the mortgage, we accepted the offer of switching our current accounts to Nationwide, thus opening a joint current account with them, to be eligible for £750 cashback. One thing that's on my mind, is will this give the lender easy access to monitor our incomings and outgoings from our current account?

If my girlfriend isn't redeployed and doesn't find a job before her redundancy, then her last wage will go into our account in May. After that, I'm wondering if Nationwide might smell a rat if that money fails to enter our account? And if they do smell a rat, would they be able to do anything about it?

xylophone

If my girlfriend isn't redeployed and doesn't find a job before her redundancy, then her last wage will go into our account in May. After that, I'm wondering if Nationwide might smell a rat if that money fails to enter our account? And if they do smell a rat, would they be able to do anything about it?

Your girlfriend could be paying her salary into any account she happens to have - Nationwide will hardly be checking every one?

NW knew your girlfriend's employment status when she applied and that status has not changed.

Anybody's status can change after commencing mortgage repayments.

Concentrate on working out how you will pay the mortgage/bills if she is unlucky enough to be unemployed for a period - presumably she will qualify for contributory JSA in that event which will help a little.

jbainbridge

Rustyman33 wrote: »

If my girlfriend isn't redeployed and doesn't find a job before her redundancy, then her last wage will go into our account in May. After that, I'm wondering if Nationwide might smell a rat if that money fails to enter our account? And if they do smell a rat, would they be able to do anything about it?

Nationwide are only likely to be concerned if you stop paying the mortgage - concentrate on that!

AnotherJoe

Rustyman33 wrote: »

thing that's on my mind, is will this give the lender easy access to monitor our incomings and outgoings from our current account?

If my girlfriend isn't redeployed and doesn't find a job before her redundancy, then her last wage will go into our account in May. After that, I'm wondering if Nationwide might smell a rat if that money fails to enter our account? And if they do smell a rat, would they be able to do anything about it?

Wow you really are a worrier !

Look, once you've got it, all they care about is, "are you paying the mortgage on schedule". That's it.

Why on earth would they monitor what's going on in a current account which for sake of argument if she is super canny with multiple accounts, she'd have different payments going in and out to get different high rate bank accounts as per Martin Lewis schemes, it might have numerous things flowing through it !

Whether the mortgage money comes from her job, from her nationwide bank account, from another one she switched to to get the bonus or from aunt Edna in Oz who'se decided to subsidise you, doesn't matter.

Do you think they'd say hmmm money isn't coming into your bank account from her old job it's coming in from aunt Edna so we are cancelling the mortgage? And they only do that for people who have a nationwide bank account, no one else, since they can't monitor those?

There's a ton of things you could worry about.

As long as the mortgage is paid on schedule, rummaging through her bank account details absolutely isn't one of them.

Thrugelmir

Now you are committed to a mortgage. Focus on finding secure permanent employment. Rather than worry about anything else. What was your back up plan if her contract hadn't of been renewed? You'd be in exactly the same position financially.

pinkteapot

Rustyman33 wrote: »

HouseBuyer77: We have planned to take in a close friend of mine as a lodger (licensee, not a tenant) the whole time. I've taken out a home insurance policy that covers this circumstance, and he has his own cover for his personal contents. What I haven't yet done is told my lender, but right now I'm thinking we should lay low until we complete. Does anybody have any experience on dealing with lodgers and the mortgage lender?

Some mortgage lenders allow lodgers, some don't. Looks like you're lucky as this thread from November says that Nationwide do allow them, but the lodger will need to sign something:
https://forums.moneysavingexpert.com/discussion/5369783

Per the advice there, you may get a clueless customer service rep on the phone initially who think you mean a tenant, and tries to move you to a buy-to-let mortgage. If that happens, ask to speak to someone else.

Rustyman33

Thank you xylophone, jbainbridge, AnotherJoe and Thrugelmir.

I've re-budgeted for the possibility that my girlfriend hasn't been redeployed, or found another job by May. Obviously finances would be a lot tighter, but if she's eligible to claim JSA and we took our lodger's rent into account, we would be able to get by.

We could also factor in her secondary part-time employment (the mortgage adviser didn't want to take this into account when calculating affordability), which would bring in between £100 and £200 a month, or more if she increases her hours with that job.

I could bring in a little bit of pocket money with the covers/function band that I play in, and we could both do away with some non-essential direct debits (Netflix, gym memberships etc.) And finally, whilst I don't want to dote on them, I have a very loving and supportive family that won't let us get into any deep doo-doo.

HouseBuyer77

Might be best to inform them about the lodger post-completion just in case, but I doubt you'll have any issues (say we're taking on a lodger, is that ok, not we have taken on a lodger).

Fundamentally doing anything costs the bank money, so whilst the mortgage money comes in on time every month they're unlikely to probe too deeply into things.