Just lost my job on the day of contract exchange for first house

StevenwithaPH

I'm still shaking.

I work for an American company, but I live in the UK. I've been there for almost 3 years.

Earlier this morning (9am), our solicitor called and said they're hoping to get contracts exchanged today, with plans to then agree on a move-in date for about a week or so.

I started my work day and around 12, I notice a meeting has been chucked on my calendar with some random people I've never spoken to - C-level. Come 1 pm, I join the meeting and get told I'm being let go, basically effective immediately. I can't join team calls or do anything - I've been locked out. 

I've been sent some documents that I need to sign and return within a week or so but I'm pretty sure I need to tell the bank that my circumstances have changed? My wife's pay will be enough to cover the mortgage and bills and we have a few months of savings to cover everything else.

The situation is dire. We've saved for 8 years, put down 20% deposit and I fear we're going to lose it all. I don't know what to do. I need to speak to the bank but I don't want to hear the news that I'm dreading they will deliver. My chest hurts too much.

Postik

I'll wait and see what others recommend, but if it were me with 20% deposit on the line, exchange today and completion in a week, I would just go ahead and not say anything.  That is if my wife could definitely cover the mortgage and bills with her wage.  Then I would start looking for another job.

The reality is, this could have happened the day after you completed.  I'm assuming that both you and the bank didn't consider it impossible that one day you might be made redundant.

Edit: You won't lose your deposit until after you've exchanged.

BJV

OMG I am so sorry.

1st thing is don't sign anything until you have got some advice from a HR expert. How long have you worked for this company as if it is over 2 years you will have some protection.

2nd speak to your solicitor. Ask them to delay the exchange - completion. Just to give you some breathing space.  In your line of work is there plenty of jobs, i.e can you be back in work by the end of the week? If so. If it was me I would delay, if you can get another job. Then speak to your bank, tell them you have moved jobs. But I would try if you can to just step back and don't do anything except ask them to delay the exchange for today. Just take some time. Someone with loads of mortgage and HR advice will be along soon to help. 

marcia_

 Sure as you are uk based they need to follow uk employment law meaning they might not be able to just fire you on the spot 
 i agree if you are sure you can still make the required mortgage payments say nothing 

housebuyer143

As above, you need to go through the redundancy process in the UK which at a minimum is a notice period, redundancy pay if over 2 years at the job.

In your shoes I wouldn't tell anybody and press on. It's not worth losing your deposit.

Skiddaw1

For what it is worth, I agree. If you and your wife can afford to cover the mortgage and bills (and from the sound of things you have a bit of a cushion in addition to that in case something unexpected crops up) I'd say nothing and continue with the purchase.

I really hope you find another job soon. These things have a habit of working out however much of a shock it is at the time.

Newbie_John

Advise of a good mortgage broker here will be very valuable.
If your partner's salary is enough to pay the mortgage and bills, plus you have savings in place - you must have been in fairly good place to have it approved - saying that I wonder if picking any random job - let's say at Tesco's would be enough to satisfy banks needs? (Only saying that as this was advise from mortgage broker for my self-employed wife who didn't have enough average in the past 3 years when we applied).
Also, a lot depends on how quickly you'd be able to pick up another similar job.

stuhse

Nightmare i feel for you.  If you have already exchanged and its to late to stop the process i would proceed and not tell the bank in case they turn funny. As others have said this could have happened the day after you exchanged.  I dont know what your line of work is, but most companies are struggling like hell to recruit at the moment.  Certainly born out by the experience we have at our work when advertising positions.  Spend this afternoon fine tuning your CV, looking on th e likes of indeed for jobs and getting your name on the books of recruitment agencies.  You could very easily be back in work within weeks.  As you say in your post you have some contigency...so crack on. Worry does not empty tomorrow of its sorrows, it only empties today of its strengths.

tigertrio

If you can afford it without your salary, just go for it.

MeteredOut

Sorry to hear this. As others have said, you do not have to sign anything. Take your time to review the documcent, particularly if they giving you deadlines and you are feel pressurised to do so. Ideally get independent advice. 

NameUnavailable

Well if your solicitor has exchanged then I would keep quiet and just proceed. If you speak to the mortgage company they will almost certainly pull your deal and you would lose the deposit AND could be liable for a lot more costs too.

If your solicitor hasn't exchanged just say something has cropped up and you aren't quite ready to exchange, you will confirm back when (just to give yourself some breathing space to decide what you really want to do).

As said, if you think you can (and want to) find another job in the same area then I'd proceed given that you say you can still afford the mortgage etc. (if you couldn't afford it then that's another matter and the obvious advice would be to pull out).

Check your rights as regards your redundancy - notice period, redundancy pay etc., and whether they are acting fairly. I was made redundant once in much the same manner - totally unexpected. They did pay me a lot more than they were legally required to but it was still a shock and took some time to process, but ultimately things do tend to work out.