Partner lost job, walked in to another.... So do I need to tell mortgage lender

Guest101

edinburgher wrote: »

Personally? I would tell them.

A sibling lost their job weeks before completing on a house, never told the lender and defaulted on the mortgage within months. Luckily they've turned things around and are still there 8 years later, but I was amazed that the house wasn't repossessed.

Takes a long time to repossess a house

silvercar

The fact that your partner got another job quickly on the same wage suggests she can do the same again if required. I wouldn't think this worth notifying.

N1AK

moneyistooshorttomention wrote: »

Personally - I would be wondering what might happen if they found out subsequently there hadnt been a disclosure? Probably nothing much - and they probably wouldnt find out anyway.f a way a mortgage company could find out if you didnt tell them.

I'm not sure I'd make a decision of this scale based on the possible consequences being 'probably nothing much'.

Generally in these situations the risk is if/when something else goes wrong. If, for example, your financial situation in future meant you couldn't pay the mortgage you may find that your breach of contract (failure to inform) about this may limit what they are willing, or obliged, to do to help you at that later point. If there's no real risk of you being in that situation then there is almost certainly little risk to not informing the lender.

Kynthia

My main concern would be if they found out and pulled your mortgage between exchange and completion. You would be contractually bound to buy tge property but have no funds to do so. You'd be at major risk of losing your deposit and funding all the expenses incurred by the whole chain. Not worth the risk.

moneyistooshorttomention

Kynthia wrote: »

My main concern would be if they found out and pulled your mortgage between exchange and completion. You would be contractually bound to buy tge property but have no funds to do so. You'd be at major risk of losing your deposit and funding all the expenses incurred by the whole chain. Not worth the risk.

Not that big a deal I'd guess if, by some remote chance, they found out - just a question of establishing which other firm would be providing the mortgage instead. There must be plenty of people that find the whole housebuying process is taking them so long (courtesy of delay in finding the house they want and/or delays by the vendor even after they've found the house) - and they go on to find their mortgage offer has expired and they have to find someone else to give them the mortgage instead.

I can't imagine that would be a big deal in the remote possibility of that happening - unless the mortgage company concerned have agreed to lend a lot more than others would (eg they've got a special deal on the back of the last job they had - as I did back when I bought my starter house). But if there is no specific job-connected special deal then <shrugs>

cloo

TBH, we were in a similar position; my other half found his job had gone just as we were about to get mortgage offer, and he hadn't anything else lined up just yet. In the end, he just got his soon-to-be-former employers to agree that, should they perchance they be approached by the lenders to confirm his employment there (as does happen sometimes), they would just not mention he was on notice because they didn't want the situation to cost us the purchase - I don't believe they were asked anyway, and he did get on to a new job as soon as his notice ended.

missile

Of course you should tell them, but I wouldn't.

They could withdraw your mortgage approval.

magicpork

Yes, technically you should..however..

If you have exchanged I would say you'd better stay put... what if you tell the lender then they decide to review your case and you won't get the money when you complete?

newtothis141414

I'd tell them. Yes, y might lose the mortgage, but bearing in mind your partner already has new work the lender may let you proceed. You could also find another lender willing to lend to someone on probation. Stressful, yes, but the flip side is you committing mortgage fraud, and it would be looked at fraud with intent. You'll have been told to disclose any material change during the process. Virtually every lender I've ever dealt with makes it a condition during the mortgage process.

The consequent of mortgage fraud, at worst, is that the lender calls in the loan. That leaves you in a position where you have to either sell quickly or remortgage - and good luck with that when you've been black listed for mortgage fraud!

You'd take a gamble in the lender not finding out. What if they do last minute checks before the money is drawn down? There was a delay in our mortgage proceeding so they wanted the last pay slip. They might look at HMRC data to confirm your income, and notice th change in employer. Lenders are getting much more into uncovering and pursuing fraudulent transactions.

KiKi

I'd absolutely tell them - but what I'd say is "just to let you know my partner has a new job on x wage, which she starts on Monday...".