Redundancy and mortgage offer

tanghu

Please no nasty comments as I feel like a complete idiot. Our house buying process has been really dragged out with being gazumped multiple times and things falling through. I was then made redundant at work, given 3 months until my last day and an unexpected large severance package. I found a new job, we put an offer on a house and applied for the mortgage which has been accepted (though not yet signed). 

It was such a stressful time, with our buyers threatening to pull out, family health issues etc, that it didn't occur to me at all that the lender needs to know that I'm changing jobs. Now I look back and can't believe how stupid I've been. 

I'm planning on talking to our broker, as my new salary is lower so it will need to go back to the underwriters, but I presume they will want to see redundancy agreement which includes the severance package info (which I think will help our case?), and this is dated from before our application -  and I'm scared I'm going to be done for mortgage fraud if I send it to them. 

We already have a mortgage with this lender and I believe from researching online that they are happy to lend during probation periods (which is 1 month). I won't actually be changing jobs until after completion though.

lika_86

I'm confused about the timeline here. You say you applied for a mortgage after you got the new job, so why would there be an issue with you not telling the lender? The issue is whether or not you lied on the application.

ETA:

Reading this back, I assume you mean that you applied stating your employer and salary to be your current (soon to be ex-employer)? In which case, that was technically true and as long as you tell your lender before they lend that that isn't now true then that's fine, things do change. 

The only potentially problematic thing is whether there was a question on the original application (or at any time since) along the lines of 'do you anticipate any changes to your financial circumstances?'. As you knew at the time of the application you were being made redundant then the answer to this should have been 'yes'. In which case, then in terms of making out an offence, they could probably make a case.

I'm not sure they will necessarily need to see the severance agreement, if the difference in salary doesn't make a difference to their lending decision. Speak to your broker and see what they say.

Brie

I didn't mention my threat of redundancy to my mortgage provider when we were porting our mortgage to a new property.  Firstly I was determined to get another role in the same company (which I did eventually).  secondly the total mortgage was going down rather than up so more affordable so the drop in salary wasn't an issue. 

If you have had a large severance package then hopefully that will mean you have a bigger deposit which will count in your favour. 

Can't see how fraud comes in to it at all unless you outright lied on the application which it sounds is not the case.  

tanghu

I was applying through a broker who already had all payslips and bank statements etc, after the first house fell through, when we had an offer accepted on the second I gave them the house price and the go ahead to proceed, I haven't signed anything yet or answered any questions as to whether there will be any changes in financial circumstances. 

MultiFuelBurner

Talk to your broker explain everything, they are the experts and they will find you another product if you current lender does not want to accept the changes.

CSI_Yorkshire

You haven't taken a mortgage based on any false information - nothing signed, you haven't had the money...

No fraud.

lika_86

CSI_Yorkshire said:

You haven't taken a mortgage based on any false information - nothing signed, you haven't had the money...

No fraud.

I suggest you read Section 2 of the Fraud Act 2006. Not having actually had the money is not a requirement for an offence under that section to have been committed.

The issue here would be whether a false representation has dishonestly been made. 

CSI_Yorkshire

lika_86 said:

CSI_Yorkshire said:

You haven't taken a mortgage based on any false information - nothing signed, you haven't had the money...

No fraud.

I suggest you read Section 2 of the Fraud Act 2006. Not having actually had the money is not a requirement for an offence under that section to have been committed.

The issue here would be whether a false representation has dishonestly been made. 

I was simplifying for the benefit of the OP.  I am well aware of the Fraud Act.

My answer more fully - "nothing that would be in anyone's interests investigating and chasing as fraud, so don't panic about the situation and just talk it all through with the broker as you already plan to do".

lika_86

CSI_Yorkshire said:

lika_86 said:

CSI_Yorkshire said:

You haven't taken a mortgage based on any false information - nothing signed, you haven't had the money...

No fraud.

I suggest you read Section 2 of the Fraud Act 2006. Not having actually had the money is not a requirement for an offence under that section to have been committed.

The issue here would be whether a false representation has dishonestly been made. 

I was simplifying for the benefit of the OP.  I am well aware of the Fraud Act.

My answer more fully - "nothing that would be in anyone's interests investigating and chasing as fraud, so don't panic about the situation and just talk it all through with the broker as you already plan to do".

Quite a different thing altogether. As is whether a lender would want to continue to lend.

NameUnavailable

I once tried to remortgage after being made redundant and having found a new job. I just wanted to get on a new fixed rate deal at the time, same lender, but they refused saying that I had to be in my new role for at least 6 months.