Changed job just before exchange/completion

rooney1310

I know what the 'right' thing to do is (inform the lender) but I am extremely anxious and I guess just looking for others experience...

We are due to exchange and complete on a new mortgage in the next 2 weeks. My husband has finished his last day at work today and starting a new job (same role, same pay) but at a different company next week which is 3 miles closer to our new home (and there will be no pay gap).

Long story short... we have both had finances and credit checks scrutinized by well known lender and passed so we really are at the final hurdle with mortgage offer!!!

My questions is this: has anyone been in a similar situation and and no checks were made again your employer? Did everything work out fine or not??

markfj

I wouldn't have thought it would be too much of an issue now, as the credit checks have all been complete? Though i changed jobs just after completion to be on the safe side, i think i was just abit over cautious in case it fell through right at the end

rooney1310

The issue he had was that he absolutely HATED where he was working and really looking forward to starting at the new place (he'd actually worked there a few years ago and they've taken him back with open arms)... I really understand how he feels but at the same time feel he might have jeopardised our chances of owning our dream home! Do I tell them? Do I keep quiet... finding all this very stressful. We are basically due to exchange next week.

I've read on a lot of these Amercian sites that the banks/lenders actually call the borrowers employer to see if they still have the job but it appears to be different over here (I hope so!!!).

Goldiegirl

As you've already said, the right thing to do is to tell them

If you don't tell them, the chances of them at this stage randomly checking to see if your husband has left his employment are tiny, very tiny indeed.

If you don't tell them anything, then they'll never know.

If you tell them, the things they will be interested in are is the new company a genuine employer e.g. Can the employer be found in the phone book, etc.

Also, very importantly, they'll want to know if your husband is on a probationary period or not, and they'd almost certainly check this with the new employer. If your husband doesn't pass the probation, they might decide not to continue his employment, which is a big concern to the lender. If there's no probationary period, the lender would most likely be happy to proceed.

It's your call - what gives you most peace of mind - to tell or not tell.

Thrugelmir

rooney1310 wrote: »

I understand that we should report any material change to our lender but I am so scared of them retracting the offer I really don't know what to do.

When you signed the mortgage application form you signed a declaration that you would do so. The risk is all yours to take. Just like driving at over a 100 miles an hour on the motorway. If you get caught you suffer the consequences. For some people it can be life changing. With financial matters, relationships are built on trust. No trust, no relationship.

marsman802

I really wouldn't mention it.

You are (presumably) grown adults who know what commitments you have made to the lender in order to service the debt.

Dont read up on American sites - you are (presumably) in the UK.

My previous (potential) lender wanted employee references from HR but it all got messy so we applied to another lender alongside it - no issues with lender 2 and we exchanged yesterday.
Some will check and some won't. Some will lend and some will not.
There's a lot of lenders to choose from...

David_White

What's the difference in salary and are they on probation?

My colleague had a case a few months ago where a lender wanted to conduct a courtesy call the day before completion. They couldn't get hold of them on their mobile so tried the landline number provided which happened to be their work number.

They called the work number and were told the client quit that job two weeks before.

They didn't complete the next day.

rooney1310

No difference in salary, pretty much exact. We've had a good chat last night and he's staying at his current employer (has agreed to work 4 weeks notice to them) so this will allow us time to complete and move. I appreciate all your responses but I just feel this is the right thing to do. I find it very hard to not be truthful!! At least I can sleep at night!! I guess my advice to anyone else who's in similar situation is to do what YOU feel comfortable with.

davidmcn

rooney1310 wrote: »

I just feel this is the right thing to do. I find it very hard to not be truthful!

So you've told your lender that he's handed in his notice?

rooney1310

Yes I have spoken with the lender today and they have requested a letter of employment confirmation from his new place confirming start date salary etc which he can get pretty quickly. Because the salary is pretty much the same and there is no probation period and permenent contract they said this isn't a concern and everything can proceed as normal. Not sure if the fact our new mortgage is only 65% LTV making a difference, the lender is HSBC.

Goldiegirl

As there's no probation period and a similar salary, there should be no problem at all with this, as long as the new employer confirms everything.


You've got peace of mind by being open with the lender, so you can enjoy the bank holiday now!