Mortgage offer worry

biscotti

Hi everybody. I’ve been lurking here for a Long time but this is my first time to post. Can you please help us in our situation? We are in the process of buying a new build. Got a mortgage offer last January, exchanged on February. Our mortgage offer was supposed to expire this end of June but it was automatically extended until September. However, completion is delayed until October. Now the problem is I’ve just been recently furloughed. I know we are still able to pass the affordability test even with reduced salary as I’ve received a raise this year. I know we are obligated to inform our broker regarding the change of circumstance but I’m a bit scared  that our offer might be withdrawn by the lender and we have already exchanged!

Come September, we will have to reapply for a mortgage anyway, so I’m thinking we’ll just inform our broker by then. Also most probably I’m back to work even before that. But I remember our broker also mentioned before that we don’t have to reapply because the lender will just refresh the offer but I am not really sure what it means. 

I am confused and a bit scared. What do you think we should do?

jamielutz1987

Given that it's only early June, your original offer is from way back in January, completion isn't till October and you will meet affordability even with reduced pay, I would inform the broker now and take it from there.

What you don't want happening is that the lender asks for latest payslips closer to completion, it shows that you are on some form of reduced pay and that triggers a mad rush for reassessment, potential offer withdrawal and hunting around for a new lender.

biscotti

Okay. Thank you. I will give my broker a call this week. 

biscotti

I just want to update this. I just called my broker today  and informed him about the change in circumstance. He said that we don't need to do anything about it. Yey!!!

Also, I am back to work now in a part-time basis (3 days working, 2 days furlough) so given my increase in salary this year and me on part-time, I've calculated that my salary is almost the same with my salary when we applied for mortgage last year. I hope to be back on full time before our mortgage extension expires in September.

foxy-stoat

Thats good news, what about SDLT payment holiday - you should be able to take advantage of that as well.