Job loss/change after exchange of contracts!

newbuildbuyer

In desperate need of some advice,

Background - we have saved for years and put everything into our house purchase and if it falls through we will lose everything. The stakes here are high, this is a new build home and not only will we lose deposit, solicitor, broker fees, upgrades, carpets, flooring, we will also need to make up the remaining 5% deposit to developer. This is our life savings we are talking about here.

One week after exchange my partner out of the blue lost her job, She has been there less than two years so unfortunately nothing we can do about it.

Thankfully she has got another job lined up within a day, no probationary period but will require an induction, the job is in the same field and under the same organisation but on a better starting salary with a guaranteed rise in wage in two years. We have confirmation of this but are awaiting the contract which should be here in a couple of weeks. We are set to complete within a couple of months. My partner is still employed with previous role until the end of July but not set to start new one until September so her new role will start around completion.

We really don't know what to do for the best here, we are very honest people and obviously I want to inform the broker but with so much at stake I'm absolutely terrified that it causes them to back out. From what I've read online I believe our lender is not too concerned about a new job as long as they can confirm with employer and see contracts but in this case my partner could potentially be waiting to start her new job when completion is due and I'm unsure if this would be an issue.

Our mortgage offer is valid long before completion is due, solicitor states bank are ready to transfer funds and all is signed off and ready to go. I'm not asking people to tell me what is right or wrong here, I'm asking what would you do? We just want to make the decision that gives us the best possible chance of not losing the house.

Obviously if this happened prior to exchange we would have been upfront immediately but given we have already exchanged the consequences here could be HUGE.

csgohan4

As with these types of posts, being honest is contractual and you need to inform them of any material changes which despite better salary is a new role nevertheless.

Lenders could ask for salary slips prior to completion, but not common

Whether you want to tell them or not is up to you, but you should, as not doing so, it could back fire royally and you could end up on the fraud register and good luck getting a mortgage ever.

csgohan4

nowhereboy wrote: »

Thanks.

We are in a now or never situation, we will be ruined if this falls through, a fraud marker would be the least of our worries and I'm not entirely convinced we would receive one anyway as her role is with the same organisation, it's not like we have been fiddling payslips or anything.

Hence me asking what our best chances are, it's all well and good being honest but if that causes us to lose the house we are ruined regardless. If you told me our best chance is to be honest then we would be honest, if you told us our best chance is to stay quiet, we would stay quiet.

we are yet to receive her new contract and she is still employed by previous employer at the moment, as soon as we receive her new contracts the likely scenario is I will contact broker as I don't want to be dishonest, I just want to ensure we are not making a huge mistake by doing so as from what I've saw online it would appear the bigger risk is being honest at the moment.

the bigger risk is not being honest, you have some time to get another mortgage offer, people lose their jobs all the time after exchange and as long as it fits affordability which it likely will, there shouldn't be an issue

While the likely hood on being on the fraud register is not large, it's not 0%.


The lenders gave you an offer on the understanding on current financial state, things have changed and you should tell them morally and contractually.

If you lent money off your friend because you were short and struggling. But you got a promotion/won the lottery afterwards, would you pay them back ?

https://www.nhunter.co.uk/

muhandis

What I would advise you to do, and what I might do myself in your situation are two very different things.

My advice to you is to inform your broker about the developments. It could well be a non-issue given that there is a better paid job on the other end and the gap is minimal.

What I would do myself (based on the information in your post) is to do my best to minimise the gap between current role and next role, keep shtum and hope for the best.

Obviously, there are risks involved in both courses of actions and ultimately, you need to weigh the risks involved and reach a decision.

The bar for financial firms to classify something as "fraud" is quite high. You haven't been dishonest on your application form. Based on the circumstances described in your post, *imho* it is unlikely to be classed as "fraud" and even if done so by the lender would be difficult to defend if you were to take a fraud marker challenge to the FOS.

I wish you luck in whatever course of action you choose to take. I hope it all turns out ok.

newbuildbuyer wrote: »

Background - we have saved for years and put everything into our house purchase and if it falls through we will lose everything. The stakes here are high, this is a new build home and not only will we lose deposit, solicitor, broker fees, upgrades, carpets, flooring, we will also need to make up the remaining 5% deposit to developer. This is our life savings we are talking about here.

I'm not asking people to tell me what is right or wrong here, I'm asking what would you do?

[Deleted User]

Bear in mind if your new build is delayed for any reason it may well require a re-underwrite if you want an extension.

Not always a full underwrite, but usually at least a declaration that nothing material has changed since the original app - that's when it then would be fraud territory (or you having to come clean at a very late stage).

Of course they could ask for extra payslips, where again failure to tell them the issue upfront casts doubt on the case.

I'd personally tell them so you haven't got sleepless nights for the next X weeks/months.

Even if the offer is withdrawn, other lenders would surely consider you - many lenders will lend during a recent change in jobs - particularly if circumstances (salary etc) have improved.

I'd personally rather the security of knowing I've been upfront and have nothing else to worry about, rather than attempting to continue without disclosing the issue.

If it comes out unprompted (lenders could do any number of checks prior to drawdown) then there really will be issues.

I hope all does go ok, whatever happens

Mortgage_Adviser

OP, who is the lender?

pjread

nowhereboy wrote: »

I'm not entirely convinced we would receive one anyway as her role is with the same organisation

Erm... is there a way of eliminating the gap (pull forward start date or push back end date), as that sounds a lot like continued employment with a role change to me? Especially if it's not a detrimental move financially, that then legitimately seems something that at most gets informed as a "Oh by the way, I'm at the same employer but moved roles/got a raise" with a resultant "oh ok, thanks for letting us know"

newbuildbuyer

Unfortunately thats not possible as my partner was essentially sacked from her previous role so we can't negotiate the end date. The new job starts when it starts due to enrollment etc.

We are in shock at her employers decision, no disciplinary action, no gross misconduct, nothing wrong and email proof that she was recently credited by the manager for her hard work and contributions, yet out of the blue sacked for no reason other than apparently other employers stating she was not pulling her weight behind her back. We have a case for unfair dismissal but thats the least of our worries right now.

We have had the worst few years due to losses in family etc and this house purchase was the light at the end of the tunnel, we have saved for years and put everything into this. We are both absolutely heartbroken about this situation and terrified to be honest.

I'm assuming we will be sued by the vendor if we don't complete now and this will almost certainly bankrupt us. I hope people can appreciate our apprehension in how to move forward.

newbuildbuyer

Mortgage_Adviser wrote: »

OP, who is the lender?

I'm not really comfortable putting that on a public forum at the moment.

[Deleted User]

No one here is going to tell you to withhold information but what i would say is the following:

1. Lots of new build cases need to be redone between exchange and completion due to mortgage offers expiring. It not uncommon. I've got a client on the 3rd mortgage offer with a change of job in the middle.
2. A fair few mainstream lenders will lend on a contract of employment without any payslips even if the start date is far in future.
3. The right lender can have a new mortgage offer out within 10 days sometimes.

I dont know what lender you are currently with but unless it is a really obscure one you may find that your current lender is fine with it.

newbuildbuyer

Thanks JMA

Are we likely to pay another fee to the broker for the work required? Will it require more work/charges on the solicitors side?

Our mortgage offer is valid long after our long stop date on the house is due and our house should be complete very shortly after partners final wage from old job so we would still be able to provide payslips up to completion.

I'm not asking anyone to tell me to withhold information, ultimately thats our risk and decision to make.

However It would be nice to know how likely this is to cause us a problem if we did choose to keep quiet, I've read many threads on here in which people have been successful. I've also read threads in which people have been upfront and lost everything.