Buyer furloughed and due to complete in weeks!

xxxmiwxxx

Hi. We are due to complete and move in a few weeks. We have just had a call at ten to 5 saying that our buyer has had a call from the bank about his wife being furloughed for this lockdown. The application was accepted previously. The buyer shared that he hasn’t spoken to the bank and that he may need to tweak the mortgage? Is this a common problem and easily resolved or is it likely to fall through? 🙁 I’m due a baby in February and I feel like everything’s going wrong in the last few weeks 

MWT

Depends entirely upon how close they were to the limits on affordability.

If they don't need his wife's salary to hit the lenders criteria then they will probably be fine, if they do need her salary then they are probably about to lose their mortgage offer...

... or they may have to reduce the mortgage to fit within the criteria and plan to make a lower offer on the house...

Hard to guess sadly, but hopefully they will still get a mortgage and the purchase will go through...

Thrugelmir

Far from an uncommon problem. People often have little forewarning of redundancy either. These are challenging times. Each case can be only be judged on it's own merits and circumstances. 

AW1980

xxxmiwxxx said:

Hi. We are due to complete and move in a few weeks. We have just had a call at ten to 5 saying that our buyer has had a call from the bank about his wife being furloughed for this lockdown. The application was accepted previously. The buyer shared that he hasn’t spoken to the bank and that he may need to tweak the mortgage? Is this a common problem and easily resolved or is it likely to fall through? 🙁 I’m due a baby in February and I feel like everything’s going wrong in the last few weeks 

Have you exchanged?

xxxmiwxxx

AW1980 said:

xxxmiwxxx said:

Hi. We are due to complete and move in a few weeks. We have just had a call at ten to 5 saying that our buyer has had a call from the bank about his wife being furloughed for this lockdown. The application was accepted previously. The buyer shared that he hasn’t spoken to the bank and that he may need to tweak the mortgage? Is this a common problem and easily resolved or is it likely to fall through? 🙁 I’m due a baby in February and I feel like everything’s going wrong in the last few weeks 

Have you exchanged?

We have literally just posted our contracts back today! Solicitor sent them out to everyone on Friday 😔. 

xxxmiwxxx

MWT said:

Depends entirely upon how close they were to the limits on affordability.

If they don't need his wife's salary to hit the lenders criteria then they will probably be fine, if they do need her salary then they are probably about to lose their mortgage offer...

... or they may have to reduce the mortgage to fit within the criteria and plan to make a lower offer on the house...

Hard to guess sadly, but hopefully they will still get a mortgage and the purchase will go through...

Fingers crossed. Are banks not willing to accept furlough even if it’s just for the month? 

MattMattMattUK

xxxmiwxxx said:

Fingers crossed. Are banks not willing to accept furlough even if it’s just for the month? 

As others have said, it really depends. Furlough generally indicates that the business is struggling, so that factors in, it might have an impact on affordability etc. It depends on the lender, the person's employment, until you get an answer from the bank itself then you will not know. Good luck.

MWT

xxxmiwxxx said:

Fingers crossed. Are banks not willing to accept furlough even if it’s just for the month? 

I do hope it all works out, I really do, but from the lenders perspective they don't know if it will only be for one month, after all the new CJRS has been put in place up to the end of March next year...

It will only have been for one month if they are back at work  and we are all out of lock-down in December.

... and we won't know that until next month.

Let's hope the buyer simply means they will have to get what they need using only one salary and perhaps increase their deposit to make up the difference in what they can borrow.

[Deleted User]

Do you know who the lender is and what the buyers occupation is?