Mortgage & Job Loss - what are our options?

cats2012

Ok so I think I know what's going to be said but our brains are so fried I need to hear it from some more logical people!

Basically we're in the process of buying a house- offer accepted, solicitors progressing and DIP in place. Full mortgage app was supposed to be tomorrow.

OH has unexpectedly lost his job. It's a dismissal. He made a couple of silly misdemeanours which should have had a slap on the wrist but the company hasn't been doing all that great and his manager has always had a bit of a personal dislike so here we are. We're appealing and getting ACAS advice but obviously no idea how long that'll take or if it will be successful.

He has an amazing work ethic and would literally go do a pub job or temp work tomorrow as he's absolutely devasted and feels so ashamed and lost. So strangely I'm not too worried about the financial side as I'm main earner and I know he'd be able to get some sort of income pretty quickly.

However - house. Obviously if his appeal is successful great, But no idea how long that'll be. Assuming it's not, do we just need to pull out now? We could borrow on my salary alone but obviously nowhere near as much, then my parents might be able to help us out but does that have implications if they "gifted" us deposit money? They can't go on the mortgage as presumably that has stamp duty implications (since they already own a house).

My gut says we need to pull out but we LOVE the house and are expecting a second baby imminently so really need the space. I'm comfortable we could cover mortgage payments as my salary would be enough plus as I say OH would take any job necessary if it came to that, it's just a case of getting it in the first place.

Thank you in advance to all you clever people, we're a bit clouded by shock and emotion at the moment.

[Deleted User]

You need to pull out of the sale unfortunately. Appeals can take months and its not fair on the vendor to wait.

No mortgage company will give you a mortgage unless proof of employment can be given, and lying stating your OH is still employed is technically fraud.

Sorry to be the bearer of bad news.

Good luck with the appeal.

Smodlet

Your parents could be on the mortgage but only if they also had an "interest", I think it's called, in the house. In other words, if you sold it, whatever percentage of its value they lent you, that is how much of the equity they would be entitled to. Complicated.

If they gifted you sufficient funds to increase the deposit to the point where you could borrow enough on your own to pay the mortgage, they would need to be prepared for the third degree to satisfy money laundering regs, quite rightly; those are there to protect all of us and are not that onerous unless you have something to hide, imho.

How realistic is that scenario? You say you are expecting a baby very soon; how would you view this situation were you a mortgage lender? How do they know you will definitely return to work on at least the same salary? You might decide to go part time or not return at all.

It does not really matter what your OH is or is not prepared to do; he does not have a job yet (unless that changes tomorrow) Even were he to find one tomorrow, he would have no employment history with his new employer, no proof of earnings.

Only you know your situation with your parents and how generous they might want to be. The cautious and responsible move would be to pull out of the sale or, at the very least, ask the vendor for a delay of at least 2-3 months to see if your situation changes/reverts to where it was before your OH was disciplined.

Your call.

middleclassbutpoor

Based on what you need to borrow, how much of an income multiple is this based on your earnings?

D_M_E

You also need to consider how you will manage once your income falls when you take maternity leave and your other half still does not have much in the way of income - how will you manage then?

Thrugelmir

cats2012 wrote: »

Full mortgage app was supposed to be tomorrow.

Which means that you have to be upfront about your husbands job.

The fact you are going on maternity leave has an impact too. Unless you've already made provision for the time you intend taking off.

cats2012

Thrugelmir wrote: »

Which means that you have to be upfront about your husbands job.

The fact you are going on maternity leave has an impact too. Unless you've already made provision for the time you intend taking off.

Yes sorry should have covered this- I get a very generous maternity package and so thankfully that's not an issue.

steampowered

Sorry to hear about this. I don't think you can proceed with the full mortgage app - proceeding with the app on the basis of your husband's old salary would be fraud.

The immediate thing to focus on is your husband's appeal and finding a new job.

For when your husband finds a new job, the other thing you need to think about is how lenders will view probationary periods. Some lenders will not lend if he is in a probationary period, but others will.

This is where speaking to a mortgage broker will be really helpful, because they will know how different lenders approach this. It might be that you need to use a different lender to get a mortgage during the first 6 months or so of your husband's new job.

I think you should tell the seller about the situation as with the best will in the world this is going to delay the sale. If your husband is able to find a new job and you can get a new mortgage offer quickly enough, it may be that you can still proceed with the purchase. If not, the seller may sell to someone else.

Cakeguts

I would think that pulling out at this early stage would result in much less stress in the long run. You can always find another house when things settle down.

Pixie5740

cats2012 wrote: »

Ok so I think I know what's going to be said but our brains are so fried I need to hear it from some more logical people!

Basically we're in the process of buying a house- offer accepted, solicitors progressing and DIP in place. Full mortgage app was supposed to be tomorrow.

OH has unexpectedly lost his job. It's a dismissal. He made a couple of silly misdemeanours which should have had a slap on the wrist but the company hasn't been doing all that great and his manager has always had a bit of a personal dislike so here we are. We're appealing and getting ACAS advice but obviously no idea how long that'll take or if it will be successful.

He has an amazing work ethic and would literally go do a pub job or temp work tomorrow as he's absolutely devasted and feels so ashamed and lost. So strangely I'm not too worried about the financial side as I'm main earner and I know he'd be able to get some sort of income pretty quickly.

However - house. Obviously if his appeal is successful great, But no idea how long that'll be. Assuming it's not, do we just need to pull out now? We could borrow on my salary alone but obviously nowhere near as much, then my parents might be able to help us out but does that have implications if they "gifted" us deposit money? They can't go on the mortgage as presumably that has stamp duty implications (since they already own a house).

My gut says we need to pull out but we LOVE the house and are expecting a second baby imminently so really need the space. I'm comfortable we could cover mortgage payments as my salary would be enough plus as I say OH would take any job necessary if it came to that, it's just a case of getting it in the first place.

Thank you in advance to all you clever people, we're a bit clouded by shock and emotion at the moment.

What do you mean when you say your parents can "gift" you money for the deposit. Do you really mean a gift or do the quotation marks mean it would actually be a loan but you will pretend that it's a gift?

Are you using a mortgage broker or have you been sorting the mortgage out by yourselves?

Smodlet

I didn't want to get into that, Pixie. If "gift" does not mean gift, they need to pull out now.