mortgage application in progress and just got a notice about furlough

MR_Ktm

Hi,
   as my fixed rate term in coming to and end , i have applied to switch the lender , as i am getting a better interest rate ....I have submitted all the payslips and other documents ..and the application is filed ...but today i got a notice that i might be furloughed for a month because of a delay in incoming work.....my question is 
1) do i risk the re-mortgage application if its already in progress ? is there anyway bank can find out that i have been furloughed
2) is it better to switch with the same lender in this scenario ?
3) say if the deal with new lender does not go through ....do i risk loosing current lender as well ?
Would really appreciate your answer on this matter

Thankyou !!

[Deleted User]

Let the lender know. If they decline you, you can always stay with your current lender.

K_S

@MR_Ktm

1. If you know for sure that you are being furloughed, you are expected to let your broker/lender know. If it hasn't gone to offer yet, the application will most likely be declined.

2. Possibly. Depends on how far off the end of your current fix is and how expensive your current lender is in comparison to your options now. If it's 4-5 months away and your furlough is likely to last for a month, it may be worth waiting before opting for a product switch (staying with current lender). Otoh, if your fix is up in the next couple of months, it may be best to stay with the current lender through a product switch - no income verification, credit check or affordability assessment usually.

3. No, what happens to the current application has no bearing on a product switch with your existing lender.

MWT

MR_Ktm said:

 ...but today i got a notice that i might be furloughed for a month because of a delay in incoming work.....my question is 
1) do i risk the re-mortgage application if its already in progress ? is there anyway bank can find out that i have been furloughed

As long as it stays at 'might' then I don't believe there is anything you are required to report to the lender, this isn't like a redundancy where you would be obliged to report that your employer has entered a consultation period and you had been put on notice that your job is at risk.

However, if you are actually furloughed then it isn't a question of if the bank can find out, you would be obliged to tell them.

MR_Ktm

Thankyou so much guys for your answers ..really appreciated !
Thanks,
 

Sistergold

Even if you were made redundant now  you will not “loose your current lender” as long as you keep up with your repayments, so no point not trying another lender as again you will not loose your current lender. 

MR_Ktm

Thanks everyone ..for your answer ...thankfully i wasn't put on furlough...but it was good to know
Cheers,