Buying our first house at the same time of a redundancy

System

This is a moral issue, and it is devilish how many posters here are encouraging the OP, who has arrived at a fork in the road, to go down the dishonest path and commit fraud, and avoid seeking legal advice.

If I was lending a large sum money to a friend on the basis that he and his partner both had good jobs, but he did not tell me, before I had handed over the money, that one of them had lost, or was very likely to lose, their job, I would be upset. I cannot imagine HSBC also being anything other than upset about that kind of dishonesty.

AntRyan10

Thanks for your open and honest advice everyone. I'm weighing up a few options right now but I'll probbaly stick to the honest path and tell the bank if my partner is officially made redundant. It's our first home together and I don't want to join the housing market in a fraudalent manner.

I do have another quick question though, if the airline announce they're going into administration today, when do we have to officially tell the bank? Do we wait for official comms that she's being made redundant, or do we have to tell them straight away, i.e. tomorrow morning?

We've got about 3-4 weeks until completion so I guess it's a race to move in before they officially announce redundancies. Like I said originally, we'll be able to pay the mortgage and bills on my income and I believe my partner will find something else relatively quickly. Is this correct, or do we have to tell the bank as soon as the company goes into administration, even if they haven't officially announced redundancies?

Thanks in advance!

System

The banks won't be open until tomorrow morning, so I doubt it would make a difference. The announcement may not come for several days, although it all seems to be moving rapidly to the finale.

Maybe you should ask the bank what mortgage they would lend you, and then try to negotiate the price of your target house down on that basis? No harm in trying.

Arklight

AntRyan10 wrote: »

Thanks for your open and honest advice everyone. I'm weighing up a few options right now but I'll probbaly stick to the honest path and tell the bank if my partner is officially made redundant. It's our first home together and I don't want to join the housing market in a fraudalent manner.

I do have another quick question though, if the airline announce they're going into administration today, when do we have to officially tell the bank? Do we wait for official comms that she's being made redundant, or do we have to tell them straight away, i.e. tomorrow morning?

We've got about 3-4 weeks until completion so I guess it's a race to move in before they officially announce redundancies. Like I said originally, we'll be able to pay the mortgage and bills on my income and I believe my partner will find something else relatively quickly. Is this correct, or do we have to tell the bank as soon as the company goes into administration, even if they haven't officially announced redundancies?

Thanks in advance!

You don't have to tell them anything, what you need to do is protect yourself from being in the position of having exchanged contracts and being at risk of them pulling your offer based on her employment status.

There is no way Thomas Cook is going to be around in 3 weeks time, they can't cover their current liabilities and even if they get a short term bailout who would book a new holiday with them? It would be better just to find a new mortgage on your salary.

martindow

It seems to me that this will resolve itself one way or another in a matter of days.



If TC go under the mortgage people will have to be told although in any case they probably will be seeking out clients employed by the company. Then it will come down to whether the mortgage company will be happy to go ahead with one salary or not.


If TC is rescued then there would be no reason not to go ahead. It would just be like working for any other company that has been restructured or taken over.

lookstraightahead

onwards&upwards wrote: »

No, because the lending decision has already been made. Fraud is obtaining money by deception, nothing to do with paying back money you owe!

When you borrow money you have to declare that you aren’t aware of anything that might change your ability to repay. If you lie, that’s mortgage fraud.

What about when your mortgage is up for renewal?

System

lookstraightahead wrote: »

What about when your mortgage is up for renewal?

The bank could still refuse a renewal application on the basis of decreased earnings when the renewal application is made. Or they could, alternatively, increase the interest rate to take account of the increased credit risk. One way or another, the OP could be in hot water.

Even if the moral dimension is not a concern for posters, a previous poster pointed out that the OP should not exchange contracts on the basis of this mortgage offer, which could be pulled, leaving the OP with a major financial loss.

hazyjo

I would pull out if it's a definite redundancy. But then I'm over cautious and wouldn't sleep if I felt I was risking 'mortgage fraud'.

I would however be desperately trying to find a job that paid enough for me to continue buying and affording it on paper (not just in theory).

jimbog

AntRyan10 wrote: »

Hi everyone,
a certain travel agents potentially going bust within the next 24hrs.

Let's say the company announces they're going into administration

Potentially I, or anyone can be made redundant at any time. Don't open up a can of worms - do nothing until your partner is actually made redundant (not 'at risk of' redundancy).

If you think you can keep up repayments and have exchanged and completed before that happens then great.

System

Path to financial loss:
1. OP takes the gamble many posters are urging him to take, exchanges and pays deposit
2. Thomas Cook then collapses before completion
3. HSBC withdraws mortgage offer due to loss of job
4. Purchase collapses
5. OP loses deposit