Help with mortgage application and changing jobs

Firsttimebuyerhelp

My partner and I have had our offer accepted on a house. First time buyers, no chain as the seller already has a new house.
We have a 25% deposit.
Mortgage has been agreed in principle, but we have a problem...
My other half is handing in his notice at his place of work at the end of Feb. He'll still be working there until the end of April.
What I need to understand is what addition checks do the mortgage lender do up until completion/exchange?
Will they re-check with his employer? Or will they just re-run a credit check at the point of completion? Him leaving won't affect this credit score as we both have no debt and good scores.
I want advice as we don't want to lose this house, we have cash reserves to pay the mortgage even if he doesn't get another job (which he will do, but not confirmed yet until we know when he can leave current role) but I can't do the mortgage application on just my salary.
Now at the point of applying he's still employed and will be at the time of getting our mortgage approved (I assume in the next week or two).
I just wondered if thie employment will be checked or not and when it is checked. We really want this house but my other half really hates his job and wants to hand in his notice sooner rather than later as he'll be contracted to August unless he resigns before the end of Feb (teacher).
Any advice welcomed. We just don't know what to do!

TopperHarris

Probably depends on when your completion date is and how honest you want to be. If the completion is before the end of Feb how would they know.

If you are asked about any impending changes to your employment and you say no, this could be classed as fraud but someone on here would be more clued up on this than I am.

Lemonsqueezer78

You will almost certainly be asked at the point of application if you are aware of any impending changes in your circumstances... This obviously includes any changes in employment for either of the applicants. At this point, you can lie and commit mortgage fraud if you want to.

That's the long and short of it, I'm afraid. Even if you are convinced you have contingencies or back ups to enable you to pay.

It really is a bad time to be faffing around with your employment status - especially to be doing it by choice....

MortgageMamma

I agree with Lemonsqueezer, life is long, you can't have it all at once. You could end up costing yourself a lot of money if it all goes wrong. Not just that but you have to consider how failure to transact would affect other people involved in the chain.

For the sake of a few of months you should encourage your partner to stay working where he is. It really is worth it to obtain the house, and the house would be a handy and happy distraction when a large part of his life feels wrong. Perhaps this is a bit personal but I used to wallow in negativity when work wasn't right, so I understand the despair but he CAN think his way out of it before it becomes problematic, if he's focussed on a happy future event work may just about be bearable. Another thing to consider is how his departure prior to July affects the children he teaches.

Another thing that will hopefully put you off chancing this, lenders share information regarding fraudulent activity, and many of the lenders are just brands owned by the same parent company. If you get found out, it could be a lot of heartache as it could affect future attempts to obtain a mortgage or credit.

I mean all this in the kindest possible sense.

HTH

MM

Thrugelmir

Firsttimebuyerhelp wrote: »

Mortgage has been agreed in principle,

Have you made a full application for the mortgage? In principle suggest not.

In making the application you will asked to sign a lengthy declaration. Buried in the small print will be wording along the lines of.

"I/We declare that I/we shall notify xxxxxxx of any changes to the information given in support of this application prior to the completion of the mortgage applied for. "


Failure not to will be treated as application fraud. Not advisable.

Firsttimebuyerhelp

Thank you all so much for your replies. It's really appreciated.

I've had a good chat with him today and he's happy not to give notice and to stay there for longer whilst the sale goes through.

The problem is, he's off sick at the moment (stress/depression) he's never been off before but the work is really getting to him. Fortunately he's on full pay (and will be up to 6 months) however I'm unsure if the school will disclose this when asked to confirm his work details and if this will scupper our application? As he's on full pay I would hope not, but I'm just unsure.

I don't want to do anything incorrectly, however I know getting the house will help us both mentally and financially (currently paying more in rent than we would in mortgage repayments). So I know we'll be good for the money whatever happens. I just don't know whether the fact he's currently off sick will be confidential or not?

Sorry, I know it seems like I'm trying to make a really unwise decision, but I know we can pay the for the mortgage, we just need to get it through. However obviously we don't want to commit fraud!

Thanks again everyone who's taken the time to respond, much appreciated.

MortgageMamma

I must admit in all my years I have never had someone off sick want to apply for a mortgage, remortgage yes but not actually buy a property.

Do you know how long your partner will be on full pay? are there any prospects of him returning to work before September or is he very ill? I know quite a lot about mental health so please understand nothing I say is judgemental I'm just the sort of person who views things holistically

Firsttimebuyerhelp

He was signed off 3 weeks ago, he gets full pay for 100 working days (around 6 months) then 1/2 pay for a further 100 working days (another 6 months).
He doesn't want to go back as he is just so incredibly stressed out at the moment, he is thinking of a change in career but at the moment is in a state of flux.
This job has taken him to a very dark place and he just cannot bare the thought of going back at the moment.
I'm unsure if his payslips will say sick pay or not and whether if the lender contacts the school they'll say he's currently off.
We really don't want to lose this house and I know that as soon as he finds a new job he'll be a lot happier. For the time being, as he's on full pay, and the lender won't know he doesn't intend to go back, I'm assuming we should be okay?
I know it seems silly for us to want to continue with the purchase but we don't want to have to wait until he has a new job, then passes probation etc. It'll delay us at least a year which we really don't want, we're spending so much renting at the moment and we can more than afford the mortgage repayments.
Thanks again.

MortgageMamma

Hi, I think in this instance you should wait for his first payslip and see what that says. Get your partner to phone school and discuss the matter regarding disclosure about not being in work. Either speak to a mortgage broker or a few lenders before you take the step of actually applying, see what their stance is.

I'm not saying you should go ahead with this, particularly if your partner is considering a career change as that could be risky too (potential drop in earnings, adjustment, not liking). To be honest I'm not hopeful for you achieving this without committing some sort of fraud even inadvertently, but someone who has more recent experience than I do should be able to advise you.

Regarding your partners health, have you heard of cognitive behavioural therapy? I could recommend a book for you that focuses on something called mindfulness. I know you've said your partner is in a dark place right now, and I would advise you to read do all you can to stop his depression rooting even deeper. I lost my livelihood during the 2008 economic turmoil, I couldn't stop the spiralling depression that came with it and even though I'm now fully recovered I remember how bad it was and I wouldn't wish that for anyone. Good luck x

Thrugelmir

Firsttimebuyerhelp wrote: »

He doesn't want to go back as he is just so incredibly stressed out at the moment, he is thinking of a change in career but at the moment is in a state of flux.
This job has taken him to a very dark place and he just cannot bare the thought of going back at the moment.

Is buying a house at the current time a wise decision given the circumstances. A mortgage is a long term commitment. From your early posts you appear to be justifying your decision without seriously considering the implications. Lenders do share data via an operation run for them by Experian.

http://www.nhunter.co.uk/

Firsttimebuyerhelp

Thank you! Yes, I think CBT would be a good idea, Dr has given him so anti-depressants to try so let's hope they make him feel a little better for the time being. The thought of going back just fills him with intense panic. I think he, like a lot of teachers right now, just can't handle the education system at the moment, the pressure and intensity is ridiculous. It's a shame as good teachers are being driven out due to the demands and pressures. Anyway, that's another issue!
So glad you hear you've come through the otherside and are in a better place now. I have no doubts my other half will get there in the end x