Risk of Redundancy before Exchange

agiisab

getmore4less wrote: »

how long has the GF worked at the place?

when you say lender is employer you do mean your employer not hers?

She worked there for the past 3,5 years. I mean that her Employer is also our Lender. Thank you!

SmashedAvacado

If she is employed by the lender, then its probably fair to say that the lender is already on notice.

pinkpiglit

agiisab wrote: »

She worked there for the past 3,5 years. I mean that her Employer is also our Lender. Thank you!

Maybe I'm missing something here....

If your lender is your girlfriend's employer, how can they possible NOT know about the potential redundancy?

getmore4less

agiisab wrote: »

Hi all,

I’ve read so many threads here and all seem to be very helpful answers but I couldn’t find one that’s true to our current situation. Please help!

We’ve sold our house and buying a new build. Mortgage offer received form the lender, everything is going as planned to complete end of May. Currently waiting for searches to come back on the new build. Our house is sold to an investor so they’re happy to wait - luckily.

My girlfriend is called to a meeting next Weds, where they will (99% sure) announce that they’ll make everyone redundant.

We’re worried sick until then but of course weighing up different scenarios and what we should do. We think that the employer will set a date around September. Plan for us is to complete by June the latest - which is not guaranteed with new builds.

Question is; if at all, when should we tell the lender that she might be made redundant?
I think we should wait until last minute if possible (end of August once mortgage payments are going out) but worried that they might check employment status again, right before exchange and the redundancy fact will surface? Do they check employment status before exchange after the offer is received?

I can definitely afford the mortgage by myself it’s just the risk of not getting the mortgage at all that’s the biggest worry right now.
Please help, anyone’s been in the same situation before?

agiisab wrote: »

She worked there for the past 3,5 years. I mean that her Employer is also our Lender. Thank you!

You think they won't find out that she may be redundant.

Is this an employee rate?

Surprised you did not think this was relevant in the first post.

Which lender?

davidmcn

agiisab wrote: »

she will definitely be able to find another job as she is very employable based on previous experience and open roles in the area

She might have trouble getting work in the same sector if she fibs about her employment status for this mortgage.

letitbe90

I would bet you my mortgage they won't withdraw the mortgage if you say nothing on the basis that your partner might be made redundant in the future. There just isn't any process in place to have people retrospectively look into things like employment status just prior to exchange/completion.


If there is an audit, they will just check you are employed, they won't enquire or find out if you are to be made redundant (data protection etc) - you have nothing to worry about, other than making sure you can afford the mortgage in the event of a redundancy.

AnotherJoe

I also would bet your mortgage on that but wouldn't gamble with my money that a lender making someone redundant (whose job in the industry presumably is contingent on following mortgage rules ) won't double check and won't penalise if found is a very high risk strategy.

need_an_answer

Was there a staff rate mortgage agreed?

some employers will allow the staff rate to continue for a period beyond the end of employment if the reason is redundancy.

I believe you will need to make the lender formally aware once the outcome of next week is known,although it is very possible that your new mortgage will be reviewed at this point anyway if she is being made redundant.


My OH was in this situation last year and we were unable to apply for a new mortgage whilst going through the process of redundancy,however at that point we had not made an application and were advised to wait until OH left the employment.

It may be different if you are mid way through the mortgage application and is always subject to the individual criteria of the Lender/employer/redundancy package which will also differ for each financial employer

Speak to the exit teams once the situation is clearer

lookstraightahead

Isn't everyone always at threat of redundancy or their situation changes? Loads of people change their jobs as soon as they get a mortgage or have kids, or go part time, etc.

I know with a tenancy application the employer is asked if a job is permanent / at risk etc not sure if all this red tape is applicable to mortgage advisors

getmore4less

lookstraightahead wrote: »

Isn't everyone always at threat of redundancy or their situation changes? Loads of people change their jobs as soon as they get a mortgage or have kids, or go part time, etc.

I know with a tenancy application the employer is asked if a job is permanent / at risk etc not sure if all this red tape is applicable to mortgage advisors

No one is not at risk of redundancy.

When you know you are that changes disclosure.

When the op says 99% everyone that hints at a closure of some sort Eg. Branch)