Changing Jobs - Does this effect my mortgage company?

tom0407

What would my mortgage company say if they knew I had gone part-time at my current job and started my own company and no longer on the salary I was when I took out the mortgage?

I have paid on time every month for a year and can continue to pay without a problem, but I am thinking about moving house, do I have to tell them? Can they take back my mortgage?

Obviously as I've only just gone self employed I don't have any books to prove my income, but I can comfortably manage the mortgage (otherwise I wouldn't have quit lol)

Any advice would be appreciated,

Thanks

brightbuy

Hi tom0407,

You have had a change in personal circumstances and there is nothing that your current mortgage provider can do as long as you maintain the mortgage payments each month. If you call they would most probably note down that you have had a change in circumstances and the worst they could do would be to flag your status as 'impaired'. They cannot call in your original loan.

If you are thinking of selling up you should consider the following:

:rolleyes:As long as you repay the loan when you sell up there should be no problems but check if your lender will impose any early repayment charges. These charges can sometimes run into thousands of pounds these days!!

:rolleyes:You may now find it very hard to obtain another mortgage over the next few years until you have the ability to prove your self dependancy and finances (lenders will normally ask for a year's worth of accounts as a minimum from self employed applicants). This may impact on your ability to get another mortgage (or at least a decent rate). If you are thinking of buying again they would re-assess you based on your current circumstances.

The only way that you or your lender would have a problem with these changes would be if you knew that there was going to be a change in your circumstances at the time you were applying for your mortgage.

Hope this helps!

worrypants

not a problem for your current mortgage

my husband got a job purely to secure a mortgage, we exchanged contracts on the purchase within 3 weeks of him starting the job and the day we completed he left the job:rotfl:

ps we have never defaulted on the mortgage by the way:D

herbiesjp

tom0407 wrote: »

What would my mortgage company say if they knew I had gone part-time at my current job and started my own company and no longer on the salary I was when I took out the mortgage?

I have paid on time every month for a year and can continue to pay without a problem, but I am thinking about moving house, do I have to tell them? Can they take back my mortgage?

Obviously as I've only just gone self employed I don't have any books to prove my income, but I can comfortably manage the mortgage (otherwise I wouldn't have quit lol)

Any advice would be appreciated,

Thanks

If you leave things as they are in terms of your mortgage you will be fine.

However, as soon as you look to change things, i.e. increase mortgage amounts or move (port your mortgage as well if possible), they will then have to re-assess your lending potential, and it will be based on your current scenario. SO if you have less income, or cannot verify that income, you may start to have problems.

It all depends on your circumstances and how flexible your current lender is