What information will a mortgage lender ask for from my employer?

emkirby

My partner and I are currently living apart (myself in Birmingham and him in Bristol) and after many years we are now in a position to buy our first home.

I will be relocating to Bristol, but we want to get a mortgage in place before I move jobs. I don't want to move and then wait 3-6 months of being in a new job before being able to apply for a mortgage.

Our mortgage broker has suggested that I ask my employer for a letter stating that I can commute 2-3 days a week and work the remaining days from home - as the lender (Nationwide) may want to know why I'm still working in Birmingham.

I have explained the predicament to my employer, who currently feels 'uncomfortable' about agreeing to something which he knows won't be the case - but hasn't outright said no. I know I will have no issues finding another job once we move, and I won't be handing in my notice until I have found another job, even if that means not living in the house for a couple of months at first.

My understanding is that some lenders only ask to see payslips and others will contact your employer to verify employment status and income etc. but I wondered if anyone has had any experience with a lender questioning where you currently live in relation to where you will be purchasing a house? I'm not sure if I'm just overthinking or need to be prepared for the lender contacting my employer and quizzing them!

Any help appreciated!

kingstreet

Nationwide is the most likely lender to go to town on this when it does its plausibility checks.

It will expect the cost of daily travel to Bristol to be included in affordability if you can't offer anything else.

I would place such a case elsewhere.

CocoLouie

I can understand your employer for not wanting to lie for you as it could be seen as fraud.


The mortgage lender may also want to take your 'new' travel expenses into account for the affordability checks

emkirby

So as long as I have accounted for say £150-200 per month on petrol costs there shouldn't be too much of an issue?

CocoLouie

emkirby wrote: »

So as long as I have accounted for say £150-200 per month on petrol costs there shouldn't be too much of an issue?

Unless your lender finds out that you have committed mortgage fraud and requires that you repay the mortgage.

emkirby

CocoLouie wrote: »

Unless your lender finds out that you have committed mortgage fraud and requires that you repay the mortgage.

The thing is that I wouldn't hand in my notice until I have found another job, which may mean I do actually end up commuting or living in the house just at weekends for the first few months.

Comms69

Soo.... why not find a new job, move then buy.....




I mean you might think that lenders came down in the last shower but really...


Oh and also consider what kind of reference you'd get after asking your employer for a fraudulent letter.

emkirby

Comms69 wrote: »

Soo.... why not find a new job, move then buy.....




I mean you might think that lenders came down in the last shower but really...


Oh and also consider what kind of reference you'd get after asking your employer for a fraudulent letter.

We are not really in the position to rent first and then buy, so it has to be the other way around.

My employers are extremely understanding and I have been with them a long time, so I have no concerns about receiving a less than wonderful reference.
Plus, is it even fraudulent if I actually end up staying in my job for a while and do the commute?

Comms69

emkirby wrote: »

We are not really in the position to rent first and then buy, so it has to be the other way around.

My employers are extremely understanding and I have been with them a long time, so I have no concerns about receiving a less than wonderful reference.
Plus, is it even fraudulent if I actually end up staying in my job for a while and do the commute?

If you cant afford to rent for 6 months, you cant afford to buy.


Sorry but it's that simple.


Is it fraudulent? well yes clearly or you wouldn't be asking here; can they prove fraud - maybe not; can they withdraw the mortgage offer - of course.


- Just on that note I don't understand why people say; we aren't in a position to rent. Well you're both currently renting i'm guessing?

emkirby

Comms69 wrote: »

If you cant afford to rent for 6 months, you cant afford to buy.


Sorry but it's that simple.


Is it fraudulent? well yes clearly or you wouldn't be asking here; can they prove fraud - maybe not; can they withdraw the mortgage offer - of course.


- Just on that note I don't understand why people say; we aren't in a position to rent. Well you're both currently renting i'm guessing?

Well, I should clarify, we could afford to rent, but would obviously prefer not to waste the money.

We're both currently with parents.

Comms69

emkirby wrote: »

Well, I should clarify, we could afford to rent, but would obviously prefer not to waste the money.

We're both currently with parents.

Right you'd prefer to commit fraud ..


Look, it's your life, do whatever you want.


I'd suggest that you atleast live together, and run a household, before you buy a house together. Being in a long distance relationship is massively different to living together.


Personally I think it's mad that young people are jumping head first into home ownership without any experience or skills.


Just look how many buying out my ex, we've separated how do we divide x, y or z threads there are on this sub forum.


Best of luck.