Mortgage offer done but now changing house

impatient2020

@Slithery unfortunately we gave notice, we were naive back in August and were about to exchange and had a 2 month notice period, rent day was also due that week so didn’t want to end up paying 3 months rent and a mortgage so gave notice and thought any delay would be fine as we would have 8 weeks. 

Lesson learnt! Unfortunately the chain collapsed again this week for the 3rd time and our landlady already has a new tenant. 

This is the first time we are doing this so went in a bit naive about the process. 

I don’t know anyone else in this situation but I can’t stop crying over the potential disappointment of our mortgage being taken away cos of this horrid year. 

I am going to speak to work on Monday to see if there is any way I can come back so my payslip doesn’t say furlough on it. 

Slithery

It doesn't matter whether it's stated on your payslips or not, you still have to inform the lender otherwise you are committing mortgage fraud.

hazyjo

impatient2020 said:

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. 

Sadly it's not about if you think you can afford it, it'll be a case of computer says no. My pay was topped up to 100% when furloughed and I have over 90% equity and they wouldn't let me borrow a penny more.

impatient2020

@hazyjo we actually want to borrow less now, but I have no choice if computer says no then I guess it’s back to paying someone else’s mortgage instead of our own. Also probably going to get stung for stamp duty when we can reapply. Just so frustrating but I know we aren’t the only ones going through this. 

hazyjo

They can't risk you losing your job. That was the point of furlough, to avoid making those people redundant.

I was 99% sure my job was safe, but they're now getting rid of 2 out of 4 of us so I'm at risk. Not because they can't afford us, they rake in tens of millions every year and are still busy, but because people are doing their own work and not needing secretaries.

Lenders know this is likely, so I can't blame them for being cautious.

hannah021

sorry to hear that. you must inform them, dont view it as an option, the last thing your future needs is a criminal record

Mutton_Geoff

impatient2020 said:

> 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

> find another rental now and pay the same if not more monthly that we would on our mortgage

> Also probably going to get stung for stamp duty when we can reapply.

Despite your concerns, it's worrying you are only considering being honest as a last resort. Surely you'd expect the lender to be totally honest with you on their side of the deal? As others have said, not declaring a substantial change in your circumstances is fraudulent.

Comparing rent and a mortgage payment are chalk and cheese. A mortgage does not include buildings insurance, maintenance, boiler servicing etc and all the things you will have as an owner occupier.

It's only your assumption that stamp duty will be payable. Who knows if there will be an extension in March?

Tough though it is, you might be convincing yourself there are no other options and this is driving the stress. The stress then makes you consider behaviour to buck the very system that is there to protect you (and the bank) from default on the loan.

Although you say you can afford it on one income, that is not the basis of your loan offer and until you have a revised offer based on the facts as they are today, then, tbh, there is no point worrying.

impatient2020

I know what you are all saying and yes I am going to ring the bank tomorrow morning and tell them our situation and see what can be done to salvage this offer.
like everyone else we had hopes and dreams this year and this was the last positive thing we were hoping to cling on to. 

I sold my flat earlier this year (was rented out) so I am fully aware of running costs vs renting. But I understand the bank have to protect their interest too. 

We are going to get my husbands income updated with his accountant this week so at least we can present that increase to the bank. 

Thanks all. Fingers crossed they can work with the us to still move. 

badger09

You're doing the right thing. Hope it goes well for you.

macman

Even if you have given notice, you don't have to move out on the 20th. You can sit and wait to be evicted, which at present will take many months to go through the courts. However this will involve you paying extra costs, as you will be liable for the LL's legal expenses.