Exchanged Contracts - Now being made redundant

Green_hopeful

I haven’t read all the suggestions but could you get a lodger or two. Mortgage companies are normally fine with lodgers and it cost you practically nothing, perhaps a tiny bit on your bills. You can get £7500 income tax free. I got some lodgers when I was getting divorced and it was fantastic to have a bit more money for not much effort. It made a big difference to my situation. 

user1977

k12479 said:

funkyfriend said:

...my partner works for the steel company that’s closing its doors... 

Given the high profile this has, I wonder if the lender or solicitor has/will figure out the situation themselves.

Yes, I think in previous big redundancy scenarios, the lenders have figured out for themselves who is affected. Obviously they'll have employment info. What their attitude is in such cases, I don't know.

funkyfriend

user1977 said:

k12479 said:

funkyfriend said:

...my partner works for the steel company that’s closing its doors... 

Given the high profile this has, I wonder if the lender or solicitor has/will figure out the situation themselves.

Yes, I think in previous big redundancy scenarios, the lenders have figured out for themselves who is affected. Obviously they'll have employment info. What their attitude is in such cases, I don't know.

Oh gosh, what would happen if say they did realise and then took away the offer? Where would we stand with the sale? 

user1977

funkyfriend said:

user1977 said:

k12479 said:

funkyfriend said:

...my partner works for the steel company that’s closing its doors... 

Given the high profile this has, I wonder if the lender or solicitor has/will figure out the situation themselves.

Yes, I think in previous big redundancy scenarios, the lenders have figured out for themselves who is affected. Obviously they'll have employment info. What their attitude is in such cases, I don't know.

Oh gosh, what would happen if say they did realise and then took away the offer? Where would we stand with the sale? 

In the same place as you would if they withdrew the offer because you had told them yourselves.

Your purchase contract obliges you to come up with the money on the completion date, If you fail to do that, then you're in breach of contract. Doesn't really make a difference what your reasons for not having the money are.

I hope your solicitor explained you to what the contract meant, before you exchanged?

Rhubarbium

I can’t see them realising and withdrawing the offer in the timescales you’ve got to completion. 

My understanding is they are starting a minimum 45 days consultation with the unions and no one will be served notice until after that.

With big scale redundancies like this there’s lots of training and support packages to help people into other roles both within other areas of the company and other companies within the region. Also big companies tend to offer better redundancy terms than statutory do you might get a little financial cushion from that.

I’d complete on the house and hopefully everything will sort itself out on the work front.

gwynlas

You have to live somewhere so hopefully your increased mortgage payment will not be too much bigger than what you are paying where you are. It might be that fate intervenes and your partner secures another role wthin the company or a new role elsewhere. Also do consider a lodger or letting a room through airbnb if possible particularly if one bedroom is ensuite. If redundancy does come about consider changing mortgage product to a longer term to reduce monthly payments if you have to. as you are young you will hoefully get to the stage where you can overpay.Do not despair or crave what you cannot afford for new home, time passes quckly enough you both have good health and each other. Both of you should be open to any side hustles to help the budget even a minimum paid job is not so bad and it proves willingness to work.

Miri_J

I found this on Bowfin.co.uk, it may be helpful: 

If you get made redundant after exchange of contracts you are obliged to inform your mortgage lender as this is a material change in financial circumstances.

But on the other hand if you are just told your job could be at risk of redundancy, this is not a change in financial circumstances as you are still employed.

The latter can involve a long process of consultation, and if you are both young then there could be a good job out there for your partner. But obviously only you can do the calculations. As others have said, you have time now to adjust your lifestyle and save up for lean times ahead, especially if living with parents. Would it be enough?

The only possible other way out I can think of: Is there a smaller property on the same development you could buy? Would the developer let you swap? Then they aren't completely losing out. 

lika_86

Rhubarbium said:

I can’t see them realising and withdrawing the offer in the timescales you’ve got to completion. 

It doesn't really matter if they realise and withdraw the offer within the time before completion, if they realise at any point after completion and decide to look into it and consider that the OP should have told them but didn't then the OP could find themselves facing a criminal investigation for fraud.

user1977

lika_86 said:

Rhubarbium said:

I can’t see them realising and withdrawing the offer in the timescales you’ve got to completion. 

It doesn't really matter if they realise and withdraw the offer within the time before completion, if they realise at any point after completion and decide to look into it and consider that the OP should have told them but didn't then the OP could find themselves facing a criminal investigation for fraud.

In theory, yes, but the lender is unlikely to be interested in it after completion unless they later repossess and suffer a shortfall - and I can't see the CPS treating something like this as a priority for prosecution.

EssexHebridean

I’m so sorry you’re facing this. The legal position is unquestionably that you should inform your lender ASAP. In normal situations, the “keep quiet” advice might well work, but in your partner’s case it seems likely that a) we can assume the lender (and solicitor, who I assume is also acting for the lender?) will already know, as they will know who his employer is. You may well get contact from them early next week, in fact. And b) there is no position to argue later that he wasn’t aware of the situation at the time of completion - sadly the whole thing has been such “big news” there will be no doubt about when he will have been aware - and in most cases even if you just know you are “at risk of” redundancy, there is a requirement to tell the lender. I truly wish this post could have been more optimistic. 

FYI - you should be aware that the worst case scenario here is that if the lender finds out subsequently that disclosure should have been made and wasn’t, they can call in the loan as they can view it that the funds were obtained fraudulently. 🫤