Mortgage, Corvid & Redundancies

cherries101

Hi,
Looking for some advise. We are first time buyers and have exchanged contracts on a new build. We need to apply for a mortgage extension end of October and we move in/complete end of November.

However, my partners job is at risk of redundancy. What should we do? Risk not telling the mortgage company and pray they don’t check? Shall he get a new job (same or higher pay)?

He has not been made redundant as of yet, but it sounds like he might be. So we are so unsure what to do. Shall we mention it to our mortgage broker or not? 

We are getting a mortgage with Nationwide and are using the HTB loan. 

Has anyone else had to apply for a mortgage extension with Nationwide during covid? If so, did they ask for payslips again? 

Thanks in advance 

grumiofoundation

If your partner is made redundant before you complete you have to tell your lender - as it is a material change in circumstances.

I don't know if you would have to tell them job is at risk - I guess it depends what questions they ask?

If it occurs after completion - can you afford the mortgage?

cherries101

grumiofoundation said:

If your partner is made redundant before you complete you have to tell your lender - as it is a material change in circumstances.

I don't know if you would have to tell them job is at risk - I guess it depends what questions they ask?

If it occurs after completion - can you afford the mortgage?

We can afford the mortgage and bills On just my wage. Our biggest worry is the lender withdrawing their offer and not being able to get a new one.

917700

cherries101 said:

grumiofoundation said:

If your partner is made redundant before you complete you have to tell your lender - as it is a material change in circumstances.

I don't know if you would have to tell them job is at risk - I guess it depends what questions they ask?

If it occurs after completion - can you afford the mortgage?

We can afford the mortgage and bills On just my wage. Our biggest worry is the lender withdrawing their offer and not being able to get a new one.

Can I ask, is this "afford the mortgage and bills" based on monthly figures or lender's affordability calculators?

cherries101

917700 said:

cherries101 said:

grumiofoundation said:

If your partner is made redundant before you complete you have to tell your lender - as it is a material change in circumstances.

I don't know if you would have to tell them job is at risk - I guess it depends what questions they ask?

If it occurs after completion - can you afford the mortgage?

We can afford the mortgage and bills On just my wage. Our biggest worry is the lender withdrawing their offer and not being able to get a new one.

Can I ask, is this "afford the mortgage and bills" based on monthly figures or lender's affordability calculators?

We know how much our mortgage will be and roughly how much the bills will be. 

My concern is not moving in and not having the money for mortgage and bills because we will.

my concern is, if my partner gets made redundant and the mortgage company find out before we complete, that they will withdraw there offer.

we have already exchanged contacts so we could loose all our deposit, fees paid and the house. 

917700

cherries101 said:

917700 said:

cherries101 said:

grumiofoundation said:

If your partner is made redundant before you complete you have to tell your lender - as it is a material change in circumstances.

I don't know if you would have to tell them job is at risk - I guess it depends what questions they ask?

If it occurs after completion - can you afford the mortgage?

We can afford the mortgage and bills On just my wage. Our biggest worry is the lender withdrawing their offer and not being able to get a new one.

Can I ask, is this "afford the mortgage and bills" based on monthly figures or lender's affordability calculators?

We know how much our mortgage will be and roughly how much the bills will be. 

My concern is not moving in and not having the money for mortgage and bills because we will.

my concern is, if my partner gets made redundant and the mortgage company find out before we complete, that they will withdraw there offer.

we have already exchanged contacts so we could loose all our deposit, fees paid and the house. 

Probably, you can check your contract with the New build developer, some of them include a 'Covid-19 rider clause' or similar things. It means if your financial or job circumstances change, you can withdraw from the deal without losing your deposit. 

Not all contact include this, but it worth to check.

MWT

cherries101 said:

my concern is, if my partner gets made redundant and the mortgage company find out before we complete, that they will withdraw there offer.

Take advise from your mortgage broker, if you have one, but if your partner has already been formally told that his employer anticipates a need for redundancies and has entered a formal consultation period then you should probably have already told your lender this, but it depends on their T&C of course...

... and if your partner is made redundant before you complete, and you do not tell them, then that would certainly be a breach of your agreement with them...

bradders1983

Corvid? Why are you bring birds into this? 🤔