Mortgage accepted. Handing work notice

adamw123

Hi money saving experts!

I used to freelance on good income, but when it comes to running your own business, lenders don't really like that and I didn't have enough SA302s to get a high enough mortgage. So I took a full-time job to support my mortgage application. However, it's only been 4 months now and I am at the point where I really want to leave this job. I really hate it. They have a very unethical practice. Anybody who has ever got fired, left or working here now are pretty much depressed.

We have our offer accepted and we are soon exchanging contracts (perhaps in a week or so). At which point do you think I can hand in my week's notice? As soon as contracts exchanged? As soon as I have moved into the flat? Now?! The earlier the better!

Thank you in advance for the advice. :j

ACG

If you plan on leaving your job you are supposed to tell the lender, otherwise its mortgage fraud.

I would personally hold fire until completion. Some lenders have links in to HMRC and know to the penny how much you have been paid each and every month. I remember about 2 years ago a lender ask for 13 payslips (as she was paid weekly), I sent in 12. They asked for another but they advised me if it tallies up with what they have on their records there would be no problems. As I started reading out the amount, they said the pence.

lydriver

surely until you've actually handed in your notice then you're just thinking about it?

I'd assume after the payments have started the only thing they're interested in is getting their money every month?

I read one (scare?) story of a lender asking for the full amount to be repaid with the interest that would have been accrued if it had run the full term...surely that's nonsense?

ACG

He knows he is going to do it. Its not a thought, it WILL happen.

Not at all. I know lenders who have started to call in the loan when they found the owner was in breach of the terms, I worked for one.

It would be the mortgage plus the early repayment charges or interest for the initial tie in period, not the full term.

HappyMJ

adamw123 wrote: »

Hi money saving experts!

I used to freelance on good income, but when it comes to running your own business, lenders don't really like that and I didn't have enough SA302s to get a high enough mortgage. So I took a full-time job to support my mortgage application. However, it's only been 4 months now and I am at the point where I really want to leave this job. I really hate it. They have a very unethical practice. Anybody who has ever got fired, left or working here now are pretty much depressed.

We have our offer accepted and we are soon exchanging contracts (perhaps in a week or so). At which point do you think I can hand in my week's notice? As soon as contracts exchanged? As soon as I have moved into the flat? Now?! The earlier the better!

Thank you in advance for the advice. :j

I'd wait until completion. When the money has been advanced and you've got the house. As long as you keep paying for the next few years they won't constantly be checking to see if you're still in employment with your employer and you won't have a problem.

If you quit now you must tell the lender and the mortgage offer will most probably be withdrawn.

If you exchange then they could pull the offer before completion and you lose your 10% deposit.

AnotherJoe

adamw123 wrote: »

We have our offer accepted and we are soon exchanging contracts (perhaps in a week or so). At which point do you think I can hand in my week's notice? As soon as contracts exchanged? As soon as I have moved into the flat? Now?! The earlier the better!

When you've completed, not exchanged. So that will be when you move into the flat.
I would actually advise you wait until after the first mortgage payment goes out, only then hand in your notice, and leave it a month after that even if you can. Surely you can stick the job if you know its only a few weeks?

Doing it after exchange but before completion could be catastrophic financially for you. Don't even think about that.

LutherH

i totally understand the advice to the OP, as he plans to then be self-employed again.

I was wondering if the same would have to apply for someone changing jobs prior to exchange/completion? Surely it is the fact that my base salary is the same/higher that matters, not where I work (so long as it is a permanent job with a salary).

Thanks

MaebyJade

LutherH wrote: »

i totally understand the advice to the OP, as he plans to then be self-employed again.

I was wondering if the same would have to apply for someone changing jobs prior to exchange/completion? Surely it is the fact that my base salary is the same/higher that matters, not where I work (so long as it is a permanent job with a salary).

Thanks

I had a job offer recently, which pays more than what I am currently on, but my mortgage broker advised that if I took the job my mortgage application would have to go back to the underwriters who would have scored me lower than they originally did because I hadn't been in the job for long. He couldn't say wehether or not they would still give me the mortagage or not as that's only a decision the underwriters can make, but because we'd already exchanged I decided not to risk it and turned the job offer down.

Thrugelmir

LutherH wrote: »

i totally understand the advice to the OP, as he plans to then be self-employed again.

I was wondering if the same would have to apply for someone changing jobs prior to exchange/completion? Surely it is the fact that my base salary is the same/higher that matters, not where I work (so long as it is a permanent job with a salary).

Thanks

Like the OP you may find that the grass isn't greener on the other side. One thing to con a lender , not so wise to con oneself.

Yorkie1

LutherH wrote: »

i totally understand the advice to the OP, as he plans to then be self-employed again.

I was wondering if the same would have to apply for someone changing jobs prior to exchange/completion? Surely it is the fact that my base salary is the same/higher that matters, not where I work (so long as it is a permanent job with a salary).

Thanks

It's a material change in circumstances which the lender must be told about.

In many situations, even a permanent employee can be on probation for x months after starting, which some lenders will worry about.

simpson_77

I've done the same thing twice, i.e moved house and changed jobs a month or so later.

There is no point in changing before moving and mortgage completion as you need the history. Hold out as long as you can once moved to allow a period to settle in.

I Moved November 2007, changed jobs Jan 2008. Moved July 2014 changed jobs October 2014. In 2014 I had the offer 2 weeks after moving but had to see out 3 months gardening leave, which worked out well On both occasions the mortgage is with Natwest and my wages are paid into Natwest I wouldn't worry about it. One piece of advice don't change too much at one time.....