Lost job shortly before exchange

mortgagepanic

Hi, apologies if this has been covered, I've searched but can't find anything current.


We're FTBs in a horrendous situation, about to exchange and my partner has lost his job without warning (under 2 years' service)
I know we're obligated to disclose this to our conveyancers and lender.


He has another job lined up but with much lower pay so we won't be able to borrow what we need (although we are 100% certain we can still cover the repayments and other outgoings).


Without giving too many identifying details, we desperately need to move asap, and if we lose this property there probably won't be another, for years. We're moving a long distance for something we can afford, and there's no alternative for us.


There's no chain, the property is long-term empty, although I feel awful about the potential massive inconvenience to the vendor we're not at risk of making anyone else homeless.


I know we'll lose our 10% deposit and be liable for fees plus vendor's costs should the lender pull out after exchange. I know it probably sounds crazy but our situation is so crap we feel we must take the risk.
The lender is Halifax, it wasn't a fast-track application and they obtained a written employers' reference plus all the usual payslips, bank statements etc before making the offer.


I believe they audit 1/12 applications before completion, does this include an employers' reference?


Is there any chance we'll get through to completion?


Please be gentle, I'm not coping very well with the stress!

hazyjo

Of course there's a chance.


There's also a chance they could find out = mortgage fraud.


You takes yer chances.


I'm a rubbish gambler so wouldn't risk it. There was a similar thread recently where they and most others decided it was fine.


Good luck. Rubbish situation! (Sounds like you've already decided.)


Jx

mortgagepanic

Thanks for replying. Yes we have decided, I guess, although I'm pretty ignorant about the process as a FTB so if everyone here is unanimous in saying "don't do it" we'd definitely reconsider.


I'm also a rubbish gambler, would never consider a risk like this if the alternative wasn't so grim

Paully232000

It sounds like a rubbish situation, but you dont need anyone to tell you the risks as you already know them.

I am more of a gambler and would possibly carry on with the house purchase, but I am sure there are plenty on here who would not.

lewishardwick

I am in a very similar situation.

my o/h lost their job, or at least has agreed a amicable termination of the contract. No future job lined up.

I did the maths, and I could support the household running costs on my own salary, but do not meet the affordability criteria so to continue would be fraud. We withdrew from the sale.

What happens if your lender do audit/double check employer references?
What happens if the job lined up disappears?
What happens if they don't qualify for housing benefit because YOU earn too much/have savings?

Mortgage Fraud will pretty much ruin any chances of buying a house for a very very long time. Running a home purely on one income (when you normally rely on two) will decimate any savings squirreled away.

I would withdraw and re-evaluate your situation.

Guest101

mortgagepanic wrote: »

Thanks for replying. Yes we have decided, I guess, although I'm pretty ignorant about the process as a FTB so if everyone here is unanimous in saying "don't do it" we'd definitely reconsider.


I'm also a rubbish gambler, would never consider a risk like this if the alternative wasn't so grim

Why risk ever owning a house again (and possibly prison) for the sake of a year or two?

fashionvictim

just be honest.. are you sure you can't get the mortgage on the new salary?
Halifax have lent to me during my prob period at a new job as I was the lower earner on joint mortgage. Also depends on how much deposit you have.

Noctu

Don't say anything. When will you exchange and when will completion be set for?

We were in a similar situation but with Nationwide (although hubby had actually got a new job on similar money rather than a new job with pay cut). We kept schtum and everything went swimmingly. Ironically our neighbours were in the same boat - new job - and all was fine their end too.

If your other half didn't have another job lined up I would be saying withdraw but if you can manage fairly comfortably together on the new salary...........

Grenage

This is a very bum deal. If you'd exchanged contracts and would lose your deposit, I would I have risked it. As it stands now, I would certainly not proceed.

mortgagepanic

Thanks so much for the replies.


Sorry to hear you are in this situation too, lewis.


I appreciate your advice. Fortunately for us, the repayments and other outgoings would be so low that we could manage, even on my PT wage alone - and we don't have savings anyway.
Unfortunately though, we don't have the option to stay as we are (renting) or buy cheaper, this house is a bit of a life-line in our circumstances, so as terrifying as mortgage fraud is, we can't see another way forward.
My partner is unlikely to earn as much as he was again, so I can't forsee another opportunity to get the mortgage we need.

tidds

This is not advice

There is a small chance of them finding out, I don't know of any that do employer reference checks after exchange prior to completion. Morally it's a grey area, I wouldn't tell them until after completion.

This is advice

You have an obligation to tell them.