Employer being contacted during mortgage application process

gazfocus

Divorcing_Dad said:

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.

Agree with most of this, however, an employer can get rid of a member of staff for any reason and even no reason at all within the first 2 years of employment. As such, as others have said, lenders will view a new job completely differently to an existing employment. 

I personally would hold off starting your new job (and handing in notice) until you have the keys to your new property. 

BulliJudd4

Good answers everyone, thanks. The sensible thing is definitely to hold off until the move is complete, and I should hopefully be able to do so.

tooldle

My employer definitely gave a reference for my first mortgage. The wages section were so slow in responding, I had to chase up. I don’t recall subsequent employers being asked.