Mortgage/ redundancy risk / lender checks

Bluebert

We are in the process of buying a house and taking out a new mortgage. To complicate things I'm currently at risk of redundancy. I should know within the next fortnight whether or not I will be made redundant. Given how far along in the process we are we want to continue for now (unless our hand is forced otherwise by me being redundant). 
Our mortgage would be 80% loan to value and I've had a mortgage for 10 years (always with Halifax). 
My question is...does anyone know / have experience on whether or not lenders contact employers to ascertain your employment status? 
They will of course have my payslips etc. Does it vary between lenders (e.g. if we stayed with Halifax would they not do such a thorough check)?
Would a lender be within their right to contact employer? 

[Deleted User]

Lenders do not contact employers to ask if you are at risk of redundancy. 
However if you lose your employment before you complete then you must tell the mortgage provider, to not do so would be regarded as mortgage fraud with all the issues that would bring.

sharpe106

I would be more worried about being able to afford the mortgage if was made redundant rather than if they would check or not. But as above no they will not check. But if you get made redundant you need to notify them of your change in circumstances. Even if you accept a pay cut to save your job you need to inform them as well.

Bluebert

Thank you, that's helpful to know.
Yep, absolutely, if I'm made redundant then we won't be moving and / or we won't exchange until we know the outcome of the redundancy pool. 
I'd just heard rumours that lenders were changing their checks now with everything that's going on. 

dunstonh

Currently, lenders are checking if you took a payment holiday or you have been furloughed.  If you have them that counts as a negative towards your application.   They do not contact the employer any more.

Thrugelmir

Onus is on you as the applicant to notify the lender of any changes to your circumstances. You agreed to do this when signing the declaration on the mortgage application form. Not that many people read what they are agreeing to. 

Unless you are actually made redundant, or your terms of employment change then there's no need to contact the lender. 

Potbellypig

dunstonh said:

Currently, lenders are checking if you took a payment holiday or you have been furloughed.  If you have them that counts as a negative towards your application.   They do not contact the employer any more.

How would a lender know if you've been furloughed if they don't contact your employer or check your payslips? 

[Deleted User]

Potbellypig said:

How would a lender know if you've been furloughed if they don't contact your employer or check your payslips? 

They may well ask for additional bank statements before exchange or completion, if you are on 100% then that is probably not detectable, if you are on 80% then it will be fairly obvious. 

Potbellypig

MadMattUK said:

Potbellypig said:

How would a lender know if you've been furloughed if they don't contact your employer or check your payslips? 

They may well ask for additional bank statements before exchange or completion, if you are on 100% then that is probably not detectable, if you are on 80% then it will be fairly obvious. 

I'm not on any, I was just curious as to how they would know. The way I read the post it was like they could check with HMRC out some other means like that. 

MrNorthStar

I'm in a similar boat, so also looking for further advice. I'm currently selling my house with an ex partner, and plannign to buy a house (with mortgage) on my own. My role is at risk of redundancy, and the final decision will be confirmed in around 5 weeks. I have a reasonably large deposit, and my current house sale is looking good (buyer with no chain, very large deposit, mortgage agreed). I'm probably looking for a LTV of around 40-50%.
How likely am I to be able to get a mortgage in this circumstances? Would I be better off going through a mortgage advisor because of my circumstances?

Thrugelmir

Potbellypig said:

MadMattUK said:

Potbellypig said:

How would a lender know if you've been furloughed if they don't contact your employer or check your payslips? 

They may well ask for additional bank statements before exchange or completion, if you are on 100% then that is probably not detectable, if you are on 80% then it will be fairly obvious. 

I'm not on any, I was just curious as to how they would know. The way I read the post it was like they could check with HMRC out some other means like that. 

Balance owing on your credit agency report doesn't change. Alternatively you will be asked a direct question to which the response is either yes/no.  If need be the lender can direrctly confirm your earnings with the HMRC.
Fraud application should be avoided as will destroy your personal reputation.