Mortgage offer done but now changing house

impatient2020

Just wondering if anyone knows the answer to this. We have a mortgage offer in place which expires on 31/05/21. Unfortunately our chain collapsed yesterday and now we need to find a new home (currently renting). 

Problem is I have been put back on furlough and my mortgage company are currently unaware. Will my offer be changed to the new house without a need for me to update my payslips etc or will they redo the checks? The last payslips they received from me was pre-Covid. 

We don’t want to stay in renting forever and we can afford the mortgage payments (partners job is very secure) and have savings if needs be. Our LTV is 80%. 

Just trying to judge if I need to flag to the bank and therefore risk losing offer and potential to move. 

Thanks 

hazyjo

I couldn't increase my mortgage while on furlough so I very much doubt they'll allow you to take out a brand new mortgage.

Ring anonymously to ask what their policies are with regard to furlough and mortgages. Or speak with a broker.

You are obliged to inform your lender of any material changes - that would definitely include being furloughed!

Thrugelmir

Have you found another property to purchase yet?  

Slithery

Even if you weren't changing the property you are obliged to inform your lender of any material change in circumstances.

impatient2020

thanks all. I rang the mortgage company today and asked if any financial details need to be updated once we find a new house and they said they would run a credit check but won’t ask for payslips and would just update the new address on our existing mortgage offer. Think we found a new house today, 2nd viewing on Monday. 

Slithery

Did you tell them that you've been furloughed? You have to do this.

greatcrested

Not informing them of a material change in your financial circumstances is mortgage fraud.

If you re-read your mortgage application and/or terms and conditions of the mortgage, you'll find you signed to say you would do this.

impatient2020

I am getting a second opinion from the bank on Monday before we go for second viewing. We can’t deal with another disappointment if this falls through. 

I hate this year and cannot face any longer in rented when we have the funds for buying. This is the most frustrating thing we’ve ever gone through. Especially when we have to find another rental now and pay the same if not more monthly that we would on our mortgage. 

Slithery

Can you not just stay in your current rental?

impatient2020

Slithery said:

Can you not just stay in your current rental?

No unfortunately the lease finishes on 20th Nov and the new tenant is moving in then. so either way we need to get a new rental but it’s either short term or long term depending on mortgage.

I just don’t want to sabotage ourselves for not getting the mortgage when we have done all our sums and can afford the repayments on 1 salary if it comes to it, we have savings, no credit card debt and husbands salary has increased this year (self employed). 

I was due back to work this week but company decided to save themselves more money and put a few of us back on furlough. 

I think I will have to be honest and deal with the upset if they decline us, the stress today thinking about it is too much. 

Slithery

impatient2020 said:

No unfortunately the lease finishes on 20th Nov. 

Who gave notice, you or the landlord? A tenancy doesn't end just because the fixed term expires, until you decide to leave or a court orders you the tenancy continues indefinitely.