HSBC Mortgage offer & JOb Loss

Davina_Hart

Hello,

I am looking for a bit of an advice really.

We are first time buyers having our offer accepted on aproperty. The mortgage offer has been made to us by HSBC bank and valuation report came back satisfactory. There is a new built property in the chain so wecan’t move to the property until new built is finished. The timescale for thenew built is March/April time. We haven’t yet exchanged the contracts but due very soon.

The issue is that my husband has lost his job end of last month but he is actively looking to secure another job. The question really is do we need to inform the lender about the current situation. I am thinking if my husband manages to get another job within this month in the same field withsimilar or more salary then there is no need to inform lender to create unnecessary mix-up.

I have come to this forum to take some advice as to what should we do in this situation. Please could you advise from personal experience.

Many thanks

Davina

betmunch

Of course you need to tell the lender, its a material change.


Even assuming he does manage to secure a new job then the lender might not accept job changes within a set time of the application.

Paully232000

Although you should tell the mortgage company, I would also think about, given you say 'if' he manages to get another job, what happens if he doesnt, can you still afford the mortgage and bills etc

Thrugelmir

When you applied for the mortgage. I doubt that you read the small print when you signed the form. You signed a declaration. In which there'll be wording something similar to this.

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

Failure to do so is regarded as application fraud. Something lenders monitor closely via an Experian Company they fund collectively. Link below.

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

Your choice as to what to do. The recommended advice is inform the lender. As the downside will result in difficulty for you in the future.

Davina_Hart

Thank you for the prompt responses.

We would inform the lender about the change incircumstances, but what if we do not inform the lender about the change. The lender has already made a mortgage offer to us. They have carried out their credit checks, employment checks etc at the time of our application, would they do another check before we complete on the property to gather if we are still in the same employment or not?

The thing is we do not want to invite unnecessary trouble if job change would go unnoticed to the lender.

Thanks

Davina

Westminster

You open yourself to very significant financial risks.

Once you exchange, your deposit is committed and you will lose at least that much if you do not complete the sale.

One possible scenario would be:
If - for any reason - there is a delay between exchange and completion (which is pretty common - all kinds of issues can and do pop up) you may find that your offer expires - normally an easy thing to sort out but you could well be asked for current statements / wage slips again. At which point you will, at best, lose your mortgage offer and all your deposit - at worst you will also be registered at https://www.nhunter.co.uk for mortgage fraud and never be able to get a mortgage again (well at least in the next 6 years).

Scenario 2 (no idea how likely this is):
Some mortgage files are randomly picked at random for auditing - I believe this is purely an internal process, but maybe you could also be asked for current wage slips / bank statements again etc. The results would be the same as scenario 1.

Scenario 3:
You get away with it

Is it worth the risk?

{EDIT - with any luck, your real name does not match your username on here .... }

ACG

The lender could do extra checks pre completion, especially if you are not due to complete for 2 months, which you could find gets put back as can happen with new builds.

The risk is that you exchange contracts and then HSBC want extra payslips or bank statements and you can not provide them. You have exchanged contracts and you could find you lose a lot of money or are under a hell of a lot of pressure to get a new mortgage in place in no time at all.

Having a new job in place is no guarantee HSBC will not see any problem. You need to find out their criteria on employment, they may say they want you through a probationary period or to have had 12 months employed (which would not be the case as there has been possibly a few weeks of unemployment).

The risks are pretty huge and in line with the T&Cs you should tell them. The chances of being found out are relatively slim if that completion date does not slip but I am not sure I would take the risk. You will not sleep until completion with the stress and worry either. It could be worth getting your partner to find a new job and then finding a lender who accepts your circumstances as they are.

Paully232000

thinking about our application a bit more, we were asked for our latest 3 payslips each at first meeting with our broker, then the application went to the mortgage company. The process before acceptance went past the date of a subsequent payday, and then the mortgage company asked for a fourth payslip (newest payslip).

They may not ask but that was our experience.

csgohan4

Don't risk getting your self blacklisted for future mortgage applications


Be truthful or it will come back to bite you, karma always does