Fiance will be furloughed, I am key worker, mortgage just approved... should we pull out?

yksi · 1 November 2020 at 11:14AM

You might also want to play the "what if" game. What if the sale goes through just fine, the mortgage approval is all just fine, and then partner actually loses his job a few months down the track? Unless he works for the NHS, being furloughed is actually an indicator that his job might not still be viable later on. What if he's still out of work after six months? Are you ok covering six months of expenses on your salary alone? They aren't pleasant questions but probably worth exploring. It's very hard to sell a house in a hurry when you only just bought it too.

[Deleted User] · 1 November 2020 at 11:54AM

It's a difficult choice on if you inform your lender. I am in the same situation. Have had the offer and am waiting for the contract papers to sign and exchange this week.

Consider this: If you don't inform the lender then it's technically mortgage fraud BUT if you are sure you can afford the monthly repayments along with all other bills and food then why not chance it? If you are furloughed, is your job at risk?

In my situation, its not at risk. Yes, I won't be meeting their affordability during the furlough period, but I can still pay the bills and food, and when my workplace opens up again in a month I'll immediately be back to full time work and my position is not at risk. We just have to close cos the government say so. I work for a charity (no our finances are not at risk and we have little expenditure outside of wages and utilities)
But I am still going to inform my broker of the situation and hope my lender will release the funds to allow me to complete this month.

Good luck!

Meh123 · 1 November 2020 at 1:04PM

DeletedUser said:

It's a difficult choice on if you inform your lender. I am in the same situation. Have had the offer and am waiting for the contract papers to sign and exchange this week.

Consider this: If you don't inform the lender then it's technically mortgage fraud BUT if you are sure you can afford the monthly repayments along with all other bills and food then why not chance it? If you are furloughed, is your job at risk?

In my situation, its not at risk. Yes, I won't be meeting their affordability during the furlough period, but I can still pay the bills and food, and when my workplace opens up again in a month I'll immediately be back to full time work and my position is not at risk. We just have to close cos the government say so. I work for a charity (no our finances are not at risk and we have little expenditure outside of wages and utilities)
But I am still going to inform my broker of the situation and hope my lender will release the funds to allow me to complete this month.

Good luck!

There is a huge huge reason not to chance it, if people are caught committing mortgage fraud then you end up on the CIFAS register and chances of getting a mortgage any time in the near, and in some cases long term future are gone. The real question to ask is if this is your absolutely only chance in life to purchase a property, if it is you have nothing to lose (and possibly a fraud conviction to gain and potentially losing your job depending on what sector you work in) in trying to get away with it. If it’s not then you’re risking a lot.

This isn’t coming from ‘goody goody’ place I assure you, I’m currently going through a SE employed mortgage application and the currently climate is making it hell on earth. I truly appreciate how desperate people are to just get through this process right now. I however have a background in conveyancing and have seen the effects of mortgage fraud and it’s not pretty.

FTBMish · 1 November 2020 at 1:30PM

yksi said:

You might also want to play the "what if" game. What if the sale goes through just fine, the mortgage approval is all just fine, and then partner actually loses his job a few months down the track? Unless he works for the NHS, being furloughed is actually an indicator that his job might not still be viable later on. What if he's still out of work after six months? Are you ok covering six months of expenses on your salary alone? They aren't pleasant questions but probably worth exploring. It's very hard to sell a house in a hurry when you only just bought it too.

I think this is a good way to look at things. We have about £10,000 in savings excluding the deposit we needed (5% as using help to buy for the other 20%) so I think we would be OK if he lost his job while he looked for another. Our expenditure is quite minimal so I could cover the majority of bills with my salary anyway.

FTBMish · 1 November 2020 at 1:36PM

DeletedUser said:

It's a difficult choice on if you inform your lender. I am in the same situation. Have had the offer and am waiting for the contract papers to sign and exchange this week.

Consider this: If you don't inform the lender then it's technically mortgage fraud BUT if you are sure you can afford the monthly repayments along with all other bills and food then why not chance it? If you are furloughed, is your job at risk?

In my situation, its not at risk. Yes, I won't be meeting their affordability during the furlough period, but I can still pay the bills and food, and when my workplace opens up again in a month I'll immediately be back to full time work and my position is not at risk. We just have to close cos the government say so. I work for a charity (no our finances are not at risk and we have little expenditure outside of wages and utilities)
But I am still going to inform my broker of the situation and hope my lender will release the funds to allow me to complete this month.

Good luck!

I hope it works out for you!
I will tell the lender because I don't feel right not doing so. If they recalculate on his 80% we would still pass affordability I would think. If not then its not our time. I dont want to risk getting into trouble

sofsar · 1 November 2020 at 3:37PM

Iv had my application offered few days ago and I will be on furlough. Gosh it was hard to get the mortgage in the 1st place so I’m thinking now what?
again, there’s going to be millions of us in this situation

Carl2510 · 1 November 2020 at 4:51PM

FTBMish said:

yksi said:

You might also want to play the "what if" game. What if the sale goes through just fine, the mortgage approval is all just fine, and then partner actually loses his job a few months down the track? Unless he works for the NHS, being furloughed is actually an indicator that his job might not still be viable later on. What if he's still out of work after six months? Are you ok covering six months of expenses on your salary alone? They aren't pleasant questions but probably worth exploring. It's very hard to sell a house in a hurry when you only just bought it too.

I think this is a good way to look at things. We have about £10,000 in savings excluding the deposit we needed (5% as using help to buy for the other 20%) so I think we would be OK if he lost his job while he looked for another. Our expenditure is quite minimal so I could cover the majority of bills with my salary anyway.

Technically you haven’t got 10K In savings as you’ve just got a 20% loan out! And will need to pay that back at some point.

FTBMish · 1 November 2020 at 6:08PM

Carl2510 said:

FTBMish said:

yksi said:

You might also want to play the "what if" game. What if the sale goes through just fine, the mortgage approval is all just fine, and then partner actually loses his job a few months down the track? Unless he works for the NHS, being furloughed is actually an indicator that his job might not still be viable later on. What if he's still out of work after six months? Are you ok covering six months of expenses on your salary alone? They aren't pleasant questions but probably worth exploring. It's very hard to sell a house in a hurry when you only just bought it too.

I think this is a good way to look at things. We have about £10,000 in savings excluding the deposit we needed (5% as using help to buy for the other 20%) so I think we would be OK if he lost his job while he looked for another. Our expenditure is quite minimal so I could cover the majority of bills with my salary anyway.

Technically you haven’t got 10K In savings as you’ve just got a 20% loan out! And will need to pay that back at some point.

Obviously. I meant in regards to a job loss over the next 6 months would bills etc be covered. Yes they would. I know what HTB is and that it needs to be paid back.

[Deleted User] · 1 November 2020 at 7:36PM

sofsar said:

Iv had my application offered few days ago and I will be on furlough. Gosh it was hard to get the mortgage in the 1st place so I’m thinking now what?
again, there’s going to be millions of us in this situation

Lender could say you can continue others may say hang on...i guess it depends on each individual circumstance

annetheman · 1 November 2020 at 10:42PM

It's worth being really frank with yourself about how comfortably you'd be able to afford the mortgage payments (plus other costs involved in the move, plus some contingency cash), bills etc on your salary alone if your husband loses his job soon - I'd view it as if he will (furloughed, there's a real possibility). If you feel you'd still be okay and your husband could soon-ish get another job as additional security should you be unable to work for some reason, I'd go ahead with things although of course the risk is higher that things could become unmanageable. I don't think anyone who takes out a mortgage does so in a 100% risk-free situation, it's all speculative - any of us could lose our main source of income at any point for any reason. Of course, it will be up to the lender to decide but you could end up in a whole heap of trouble if you didn't disclose the change of circumstance.