Current debt-free wannabe stats:
We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Redundancy after exchange but before completion
cantthinkofaun
Posts: 3 Newbie
Me and my partner are in the process of buying a house, we have had a mortgage offer and have accepted it and contracts have been exchanged. We have a move in date for the end of July, this is when the house is finished being built.
Unfortunately my partner has just been made redundant. We can still afford the mortgage payments comfortably on my salary. We would be infact better off with the mortgage as it is cheaper then our rent. My partner is also looking for jobs and hopefully will be back earning soon.
The problem is do we tell our lender? Or do we play stupid to it all and just stay silent?
0
Comments
-
Strictly speaking you should inform your lender. Your definition of affordabillity will differ that of the lender. The inherent danger is that playing dumb eventually comes back to bite you.0
-
You're supposed to inform your lender about any change in your circumstances. What you can borrow will drop significantly. Not telling them is likely to be fraud and I don't think anyone can recommend that you lie to them.0
-
Did he get a decent redundancy package or hadn't he been there long? I mean is there extra money there now to see you through? Would it make enough difference to the deposit and what you're borrowing to just do it on your salary?
Yes, you should (officially) tell the lender. But seeing as you have exchanged, I would be inclined to keep quiet. But only cos you said you should be able to afford expenses. Don't quote me on it!
Would they agree to furlough him rather than make him redundant? He could at least be job hunting while furloughed.
2024 wins: *must start comping again!*1 -
I'm going to recommend exactly that. Well, a lie of omission, anyway. There's no way in hell that I'd tell my mortgage lender anything that might cause them to pull the mortgage between exchange and completion.eidand said:You're supposed to inform your lender about any change in your circumstances. What you can borrow will drop significantly. Not telling them is likely to be fraud and I don't think anyone can recommend that you lie to them.6 -
If you can definitely absolutely 100% afford the mortgage and other costs, and there's a good chance he will find another job soon (thereby giving you protection in the event you are also made redundant), I'd omit at that stage.ThePants999 said:
I'm going to recommend exactly that. Well, a lie of omission, anyway. There's no way in hell that I'd tell my mortgage lender anything that might cause them to pull the mortgage between exchange and completion.eidand said:You're supposed to inform your lender about any change in your circumstances. What you can borrow will drop significantly. Not telling them is likely to be fraud and I don't think anyone can recommend that you lie to them.
It might not be the right thing to do but I could very comfortably live with myself, regardless. I'd also delete this thread and never mention it to anyone, ever. Not even my priest.Credit cards: £9,705.31 | Loans: £4,419.39 | Student Loan (Plan 1): £11,301.00 | Total: £25,425.70Debt-free target: 21-Feb-2027
Debt-free diary4 -
I think there is the letter of the law answer that you should tell your lender, and the route that I would most likely take and not risk losing 10's of thousands of pounds of deposit money through having my mortgage withdrawn, and not being able to complete on my purchase. Guess it will just be a bit of a nervy wait to see if they want any more payslips etc - was your partner in a high risk business such as hospitality or travel? If so, there is a risk that the bank will want to see a payslip to confirm no change in employment between exchange and completion?0
-
You are legally obliged to tell them.If you do, they are very likely to either withdraw your mortgage offer, or reduce it. (though what is the LTV?)You would still be legally obliged to Complete the purchase or suffer significant penalties.Only you can decide....0
-
If we tell the bank and they withdraw the offer would be get our deposit back?0
-
Read the offer letter carefully. If it does not say you are required to say something, then you are not required to do it.0
-
Not unless that was provided for in the contractcantthinkofaun said:If we tell the bank and they withdraw the offer would be get our deposit back?0
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 351.4K Banking & Borrowing
- 253.3K Reduce Debt & Boost Income
- 453.8K Spending & Discounts
- 244.4K Work, Benefits & Business
- 599.6K Mortgages, Homes & Bills
- 177.1K Life & Family
- 257.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards