being made redundant and ready to complete on buying a new house

Sam!

Hi, wonder if anyone can help please.
Really worried about my best friend so I've told her I'm going to seek advice.
They are ready to sign for their new house next week and get a move date for the middle of january (they also sign papers for selling their house) However the husband has just been told today that he is going to be made redundant but nothing will be officially announced until the end of January (something about thats when consultation starts) he is then officially still employed with them until the end of April (he also gets a redundancy package)
My question is, should they tell the mortgage company? they have a mortgage in place and they are unsure whether to tell them about this as it may effect the sale going through! He said because the redundancy isn't official until the end of January then there's no need to inform them, he also has a skilled job and will find work easily.
I'm not convinced that the mortgage company won't find out!
Anyone else been in this situation?
Thank you

glosoli

It is unlikely that the mortgage company would find out however that being said he has a duty to inform the mortgage lender of any foreseeable change in circumstance.

AnotherJoe

Tough choice, he "should" inform the mortgage company but if he does its almost certain they will withdraw his offer which is a shame if he'll get another job quickly.

Realistically unless he works for a major company with publicity that its shutting down, they wont know.

csgohan4

Hopefully your friend can find work before they get redundant

muhandis

If I were in your friend's place, given the circumstances you have described, I would think very very hard before bringing this up with the lender as it is all but certain that the offer will then be withdrawn.

To my mind, it is very unlikely that the lender will come to know by themselves.

Sam! wrote: »

Hi, wonder if anyone can help please.
Really worried about my best friend so I've told her I'm going to seek advice.
They are ready to sign for their new house next week and get a move date for the middle of january (they also sign papers for selling their house) However the husband has just been told today that he is going to be made redundant but nothing will be officially announced until the end of January (something about thats when consultation starts) he is then officially still employed with them until the end of April (he also gets a redundancy package)
My question is, should they tell the mortgage company? they have a mortgage in place and they are unsure whether to tell them about this as it may effect the sale going through! He said because the redundancy isn't official until the end of January then there's no need to inform them, he also has a skilled job and will find work easily.
I'm not convinced that the mortgage company won't find out!
Anyone else been in this situation?
Thank you

Westminster

If the new mortgage is bigger than their current one and they haven't yet exchanged then I would notify the mortgage lender (with the likely outcome that they pull the offer) as I would rather be struggling to pay a smaller mortgage if made redundant than a bigger one.

AnotherJoe

Westminster wrote: »

If the new mortgage is bigger than their current one and they haven't yet exchanged then I would notify the mortgage lender (with the likely outcome that they pull the offer) as I would rather be struggling to pay a smaller mortgage if made redundant than a bigger one.

" (he also gets a redundancy package) .....
he also has a skilled job and will find work easily."

Westminster

AnotherJoe wrote: »

" (he also gets a redundancy package) .....
he also has a skilled job and will find work easily."

Still a gamble - but that would be why we all have our own attitudes to risk and make different decisions.

Niv

Its not announced yet so the situation may change. I would not be telling the mortgage company, they cant find out something that has not been announced and even if they did know that X company were making redundancies they have no legal way of finding out who is at risk.


If the OP's friend wants to proceed now they have the knowledge of the impending redundancies is another question.

Thrugelmir

I would suggest thinking through the personal issues involved rather than simply worrying about the lender.

Sam!

Thank you for taking the time to post.
It is a really tough decision for them!
They are not worried about him losing the job as he already knows he will be in employment within the next month (only it will be contracting not staff)

They don't want to say anything yet as he doesn't officially get made redundant until the end of January (consultation starts beginning of January) and in that time things may change as they could get him a job elsewhere staying under their employement or the company may still get sold to another buyer!

Does anyone known at which point the mortgage people put the funds in the solicitors bank?