TX Equity Mortgage and Company Redundancies Announced

nxdmsandkaskdjaqd

On behalf of a family member.  Going through divorce proceedings and transferring the joint home into a sole name.  The mortgage company has agreed to the transfer of equity and a mortgage offer has been provided, but not signed yet.  The company he works for has just announced redundancy.  The family member does not know at this stage if he is on the redundancy list or not.  So does he have a legal obligation at this point in time to inform the mortgage provider of a possibility of redundancy? (I have tried calling the provider but unable to get through at the moment).

[Deleted User]

I suppose it depends on how far you take the 'any other information' box in the applications.    I have just loaded up an application for a lender and they ask the following question:

"Applicant under any notice of termination from employment or within a redundancy consultation period?".   It sounds like he could honestly answer that question as a 'No' but with the caveat that if he does end up under notice then he has an obligation to notify the lender anyway so not sure it gains much. 

Effectively, if the company has announced it is making redundancies then as long as he is not specifically told he is at risk then he could answer that as No but if he gets an offer and 4 weeks down the line is told he is under consultation and tells the lender then they will pull the offer anyway.  Its a very delicate situation but going by the letter of the contract then he needs to tell them of any change in circumstances at any point pre and post offer

MWT

It does sound like he may be 'within a redundancy consultation period' though.

Depends on the precise wording but if the company is following all the rules it is likely that they have just announced the beginning of the consultation period...

In this phase you wouldn't usually tell specific people that they are not at risk as the purpose of the consultation is to see what ideas anyone may have to limit or avoid the need for redundancies and it is important not to present a finished plan.

nxdmsandkaskdjaqd

Thank you both for the reply.  The devil is in the detail, which may have been lacking in my first post.  So:
It's hundreds of redundancies, so I feel the rules are being followed.  So the whole company has been notified that everyone is at risk (except senior directors), and the company is currently working out the criteria as to how and who will be selected.  There has been no consolation meetings and no one has been notified that they are being made redundant. So I would summaries that the company is in the early stages of the redundancy process and they have not reached the redundancy consultation period.

MWT

nxdmsandkaskdjaqd said:

There has been no consolation meetings and no one has been notified that they are being made redundant. So I would summaries that the company is in the early stages of the redundancy process and they have not reached the redundancy consultation period.

Regrettably I don't think that is the case.

It sounds like the consultation period is already in progress since the staff have been notified that redundancies are a likely outcome.

At this stage nobody would have been told they are being made redundant, that cannot happen until after the consultation period is concluded.

If there are Unions involved I would suggest your friend asks for clarity on the stage things have reached, but I would be very surprised if the consultation phase was not already in full swing sadly...