Employer being contacted during mortgage application process

BulliJudd4

Hi there,

Quite an unusual query - I am in the midst of a mortgage application and at this point in time the offer has been issued (I haven't yet actually received or signed it).

At what point in the process will the provider have contacted my employer to verify my employment? Will this already have been done? Or will it happen after I have accepted the offer? (The mortgage is with my existing provider and my current mortgage is being ported, with a bit extra added to it).

I'm asking all this because I am actually preparing to hand in my notice to my employer. There is a strategic reason around the timing of this notice being handed in but needless to say I don't want to jeopardise the mortgage application.

UnderOffer

I don’t recall ever having to give an address for my employer. Is this new I.e in past 10 years? 

They’ve noted my job title and company name, I’ve provided pay slips in past but not known the bank to have written to them (I open the post😀). 

BulliJudd4

UnderOffer said:

I don’t recall ever having to give an address for my employer. Is this new I.e in past 10 years? 

They’ve noted my job title and company name, I’ve provided pay slips in past but not known the bank to have written to them (I open the post😀). 

Yes, I had to provide contact details in addition to payslips - to be honest I'm not sure whether they definitely are contacted, but if they are it's naturally quite important it happens before I inform them that I'm offski!

lika_86

At some point you will be asked whether you expect your circumstances to change before you take the mortgage out. If you are preparing to hand your notice in then saying no would be mortgage fraud.

MattMattMattUK

BulliJudd4 said:

Hi there,

Quite an unusual query - I am in the midst of a mortgage application and at this point in time the offer has been issued (I haven't yet actually received or signed it).

At what point in the process will the provider have contacted my employer to verify my employment? Will this already have been done? Or will it happen after I have accepted the offer? (The mortgage is with my existing provider and my current mortgage is being ported, with a bit extra added to it).

I'm asking all this because I am actually preparing to hand in my notice to my employer. There is a strategic reason around the timing of this notice being handed in but needless to say I don't want to jeopardise the mortgage application.

Remember that if your situation changes significantly before your mortgage has fully gone through you need to notify the mortgage provider of a change in circumstances, handing in your notice would be one of those situations. 

BulliJudd4

lika_86 said:

At some point you will be asked whether you expect your circumstances to change before you take the mortgage out. If you are preparing to hand your notice in then saying no would be mortgage fraud.

Thanks. To be clear I will be doing so to move into a similarly-paying position elsewhere.

LunaLater

BulliJudd4 said:

lika_86 said:

At some point you will be asked whether you expect your circumstances to change before you take the mortgage out. If you are preparing to hand your notice in then saying no would be mortgage fraud.

Thanks. To be clear I will be doing so to move into a similarly-paying position elsewhere.

That’ll still be viewed as a significant change in circumstances, new jobs are viewed differently by lenders.

tacticalbanjo

BulliJudd4 said:

lika_86 said:

At some point you will be asked whether you expect your circumstances to change before you take the mortgage out. If you are preparing to hand your notice in then saying no would be mortgage fraud.

Thanks. To be clear I will be doing so to move into a similarly-paying position elsewhere.

My husband had just started a new job when we applied for our previous mortgage and our broker advised that a few lenders are wary of lending to anyone in a probationary period/first 6 months with a new employer. 

Divorcing_Dad

BulliJudd4 said:

lika_86 said:

At some point you will be asked whether you expect your circumstances to change before you take the mortgage out. If you are preparing to hand your notice in then saying no would be mortgage fraud.

Thanks. To be clear I will be doing so to move into a similarly-paying position elsewhere.

As it stands, I've been with my company a long time and would be in line for a decent chunk if I were to be made redundant. I also happen to be a shareholder in the company and know that financially, it's ridiculously stable.

If I were to take a job with a different company, I become an expendable asset. In the first 6 months (or whatever your probationary period is), they can get rid with no compensation and pretty much no notice. After that, they can make you redundant in the first 2 years without any compensation.

You're also entitled to basically no sick leave etc.

You can understand why you'd be seen as a much higher risk by the mortgage company.

chanz4

they use hmrc data to confirm wage

Divorcing_Dad

chanz4 said:

they use hmrc data to confirm wage

I'd be shocked if they did. When we bought recently, I certainly didn't sign anything to say my solicitor could contact HMRC.

I think you meant pay slips or P60s provided by your employer.

But the point above stands. You need to declare a change of employment to your mortgage provider and let them decide whether to take the risk.