Due to complete on a house sale but my employer is not wanting to renew my job offer!

discodiva99

(This has been posted elsewhere but was advised to post on the mortgage board)

Hi, I am a first time buyer with a mortgage offer from HSBC and due to complete at the end of August (3 weeks ish). We have not exchanged contracts yet and I am buying alone. The solicitor already has my LISA so I am all ready to go.

I had just started a new permanent job as an accountant at the end of April (with a 3 month probation period), when I put an offer in for an house (end of May). My employer is now not wanting to keep me on after doing my 3 months probation (they said its not my fault, they have changed their minds and now want a financial controller instead of a management accountant). But they have given me another 3 months to find a new job (until end of October).

My mortgage will be £700 per month. I have £15k spare in savings and are working with recruiters to hopefully find another job by the end of October (but this is not guaranteed). So I might have to break into my £15k savings (which would last me about 8 months after October).

So I was wondering what to do in this situation?

Should I tell HSBC I now only have guaranteed work until the end of October (even though I will have completed at the end of August and will still be in employment with my current company for a further 2 months until the end of October)? HSBC knew I was in my 3 month probation period when I sent them a copy of my job contract and they still gave me the mortgage offer. There wasn't any conditions that I had to wait to complete after my probation period was over. I haven't lied about anything. Will this still be seen as mortgage fraud?

Do you think they would withdraw my mortgage offer even though I have £15k to fall back on after October if I haven't found a job?

I thought I could possibly change my mortgage product to only put down 80k deposit instead of the 90k I am putting down now, to free up another 10k as a last resort for extra security.

I have been an accountant for the last 8 years since college and haven't had any gaps so far between employment.

Are there any other lenders that would consider my application with my current circumstances if HSBC withdraw it?

My head is a mess...any advice greatly received!  
 

discodiva99

Hii, I am a first time buyer with a mortgage offer and due to complete at the end of August (3 Weeks). Solicitor already has my LISA so im all ready to go. I am buying alone.

I had just started a new job when i put my offer in for the house. My employer is now not wanting to keep me on after doing 3 months probation (they said its not my fault they have changed their minds and want a financial controller rather than a management accountant). But they have given me til the end of October.

My mortgage will be £700 per month. I have 15k spare in savings and will hopefully find a job before end October. If i dont i will need to break into my 15k savings. I am putting 90k deposit down.

So i was wondering what to do in this situation? Do i need to tell mortgage providor (even tho i will have completed at the end of August and still be in job until end October). Or should i let my solicitor know (for advice)? I thought i could possibly change mortgage product to only put down 80k deposit instead of 90k to free up another 10k as a last resort for extra security but then i might have to start another full mortgage application and havent got a contract now? What should i do?

My heads in a mess!!!

TBG01

Your solicitor also acts for the lender.

If you tell them they'll be duty bound to tell the lender as most lenders require them to be notified of this.

I'm sure most on here will say don't say anything, and it might sound dramatic but it's still mortgage fraud not informing them.

DE_612183

you should inform them, and if you don't and you don't get a job and you do end up defaulting they may want to know what has happened.

having said that if your mortgage is £700 a month ( what about other costs? ) - £15k is likely to last you 6 months maybe more depending on how frugal you are.

If it was me, I'd be tempted to say nothing ( you don't know - your employer may change their mind again before the end of october ! )

propertyhunter

The official line is tell them because its a material change in your circumstances that the loan was based on. The opposing advice is don't and complete on the house under the proviso you're confident you can get a new job without an issue. I'm guessing the people giving the former advice will be aghast at people taking the alternative approach. It's your life - do what you think is best - and speak to people who care about you for their input about the pros and cons. If it's a property that's you personally can justify it for (for whatever reason) - do what you need to do. Otherwise there's always another place to live if this falls through. 

TheJP

It depends on how confident to you feel youll be able to 1. get a new job by October or 2. If you are ok using the £15k which could pay for 12 months of the mortgage depending on other bills.

If it was me in your circumstance, i would say nothing and complete. You have a job until October and you have the means to carry on servicing the mortgage.

MyRealNameToo

discodiva99 said:

I had just started a new job when i put my offer in for the house. My employer is now not wanting to keep me on after doing 3 months probation (they said it's not my fault they have changed their minds and want a financial controller rather than a management accountant). But they have given me til the end of October.

You say about renewing but then talk about probation etc, was this a contractor/FTC role or a perm? 

How long did it take you to find this job?

I'd check your notice period and start looking for work now... its August so will be quiet with holidays right this second but will pick up in September and October and better find something sooner rather than later as the market typically slows as heading towards December. 

SDLT_Geek

discodiva99 said:

Hii, I am a first time buyer with a mortgage offer and due to complete at the end of August (3 Weeks). Solicitor already has my LISA so im all ready to go. I am buying alone.

I had just started a new job when i put my offer in for the house. My employer is now not wanting to keep me on after doing 3 months probation (they said its not my fault they have changed their minds and want a financial controller rather than a management accountant). But they have given me til the end of October.

My mortgage will be £700 per month. I have 15k spare in savings and will hopefully find a job before end October. If i dont i will need to break into my 15k savings. I am putting 90k deposit down.

So i was wondering what to do in this situation? Do i need to tell mortgage providor (even tho i will have completed at the end of August and still be in job until end October). Or should i let my solicitor know (for advice)? I thought i could possibly change mortgage product to only put down 80k deposit instead of 90k to free up another 10k as a last resort for extra security but then i might have to start another full mortgage application and havent got a contract now? What should i do?

My heads in a mess!!!

You do not say whether you have exchanged contracts yet.  If not, then some people in your position would decide not to proceed with the purchase, rather than commit mortgage fraud.  You could then try again later when your employment position is more stable, having just lost the fees incurred to date.

If you have already exchanged then the consequences are more extreme, with you likely losing the contract deposit if the mortgage offer gets withdrawn.

discodiva99

Sorry no not exchanged contracts yet

Myci85

May be worth posting on the mortgages board for advice from brokers as to whether there may be another lender who would consider your application with your current circumstances if you don't want to commit mortgage fraud. 
Are you in a job that it is normal to have fixed term contracts, and do you have a few years history in this line of work with little gaps between contracts? There are some mortgage companies that can be more flexible for contract workers for example, we used a broker that specialised in this area so knew which lenders were more common sense. 

Ayr_Rage

Please keep reading the other topic, I've reported it to be merged here as opening this when you have many replies just clutters the forum.

As you haven't exchanged and your material circumstances have changed I see two choices, continue and commit a possible mortgage fraud as you know you will have no income after October, or pull out and wait until you are employed again.