Checks before completion

Hoyinah

Hey everyone,

I am currently a few weeks away from completion and my employer has dropped a bombshell on us to say we might be made redundant if we are not successful in reapplying for a role.

Just wanted to get some advise and stories to see if anyone who has got a mortgage. If they normally do credit checks or more important employment checks before completion.

I am currently a few weeks away from completion and my employer has dropped a bombshell on us to say we might be made redundant if we are not successful in reapplying for a role.

Newbiebuyer2016

I would say you are still currently employed. Do you have a mortgage offer?

Fingers crossed you complete before anything happens as long as you can make the repayments I would say anything.

Hoyinah

Yes currently still employed and currently going through the process of reapplying for a role. The role would be more in pay as well. And yes mortgage has been offered, contract has been exchange. Yeah fingers crossed, but repayments I would be able to make very comfortably

minimike2

How will you make your mortgage payments if you are made redundant?

Hoyinah

I have quick a lot of savings that would keep me going for a few months.. And I don't think I would have any trouble finding another job with similar salary when actively looking either.

minimike2

Doesn't sound like a very solid plan.

Everyone wants to think they will manage. Survival instinct. Think very carefully before deciding if now is the right time to commit to this. Is there any scope to delay your completion a little until you know for sure?

If you ARE made redundant, you are obliged to tell your mortgage lender.

Hoyinah

I think I will manage to survive as after my deposit goes I will still have £22,000 in my savings as reserves for any rainy day situation like this.

Unfortunately I have already committed as exchange has taken place a few months ago.

Thrugelmir

Are you going through a consultation period?

What redundancy terms will you be offered?

Hoyinah

Yes we have gone through the consultation period already and now applied for the new roles.

Interviews/assessments should take place in 7-10 days time I would say and should find out at the end of May.

Would the lenders find out about any redundancy if worse comes to worse?

Senior_Paper_Monitor

WHOA .....

I quote from a recent Natiowwide offer (all lenders have similar) ..

"We can confirm that we are now bound by the terms of this offer, unless one of the following occurs:
i) there is a material change in your financial or personal circumstances or in the value of the property which is to secure the loan; or ....."

FORMAL WARNING OF POTENTIAL REDUNDANCY IS A 'MATERIAL CHANGE IN YOUR FINANCIAL OR PERSONAL CIRCUMSTANCES' - END OF !

Not often I presume to correct fellow 'mortgage industry professionals' on here BUT it is not just 'confirmation' of redundancy that you are obliged to inform your lender of !

I spent much of last month dealing with a case where the client omitted to tell us or the lender but an employer's reference enquiry had revealed the issue and a report had been lodged with National Hunter as a result.

BusyBargainz

Went through something similar myself. Received mortgage offer then a week later was told there was a restructure at work and we would all have to apply for our jobs.

The date we would get told of our redundancy was 3rd May and we would get 3 weeks notice. I was told that legally until that 3 weeks was up (24th May) I would not need to inform my lender but on that day I would need to tell them and expect them to withdraw the offer. Thankfully I kept my job.

We still haven’t exchanged but I was going to try and push through the sale before my notice period was up but thankfully there is no need to rush now (and it wouldn’t have happened before then anyway).