Mortgage when you've just resigned from a job

[Rakip123]

Hi all


I've recently resigned from my job with my contract ending next week and have no intention of returning to the same team.

I currently live with my parents with my wife, we have been looking to move for a number of years and have saved up enough to cover the deposit at 10%, stamp duty and 8 months mortgage payments.

I have written job offer and the contract for the new role is being processed and will take upto 3 weeks.

I had originally intended to wait 3 months before looking for a home, however one has just come up which is very keenly priced and in a great location, if I apply for a mortgage entering in my current job I could supply the past 3 months mortgage payments and of course bank statements, what would the repurcussion of this be if I managed to secure a mortgage with the old (current job)?

[Rakip123]

Think I found the answer to my own question

Should I just keep quiet then and not tell my lender?
There will be a lot of people offering helpful advice like ‘what they don’t know won’t hurt them’, but you are contractually obliged to tell your lender about any changes in your circumstances that could impact your mortgage offer, and not telling them could mean you are committing mortgage fraud.

[here_we_go]

I think your lender will want to confirm your salary with your employer.

[Wacky Racer]

Play things by the book, if they find out you have been lying they may blacklist you, and other lenders might not touch you with a bargepole.

If you get the job, why not be upfront and honest, people change jobs all the time.

Sarnie might be along soon.

[Rakip123]

You mean tell them upfront that I don't have a job?

[Brainpox]

Rakip123 said:

You mean tell them upfront that I don't have a job?

You're legally required to inform the mortgage provider of changes to employment during the application process. It's part of affordability criteria.

Some lenders will do checks, some won't.

If you had resigned after you had got the loan and started paying it off, you may not have needed to tell them, but this depends on the terms of your mortgage. I imagine most won't care as long as they are receiving the repayments on time, however.

[Wilmslowboy]

I applied for a remortgage during a time when I was swapping jobs. At the time of application, I was still at my old role but by the time the mortgage would come through I would have been in the new role.

I was straight with them, as I knew if they applied for a reference from the existing role, they would most likely tell the bank I was currently working my notice period.

The bank wanted to see the new role offer and contract, especially details around any prohibition period (i.e make sure I was not on one week's notice etc)

Edited by Wilmslowboy on Saturday 14th January 17:27

[BoRED S2upid]

Rakip123 said:

You mean tell them upfront that I don't have a job?

At the very minimum they are going to want your last 3 pay cheques and bank statements and when your current one is zero computer will say no.

Get a new job pronto and you stand a chance but even then they could make you wait till after the probation period.

[buymeabar]

If you can stall for three weeks and you get your new contract, some lenders (TSB for one) will offer a mortgage based off a signed contract of employment. Other lenders (Barclays) need a solid three months payslips from your role at time of mortgage offer.

I know as we've just been through something similar. Had to say goodbye to Barclays and pay a redemption fee as we found a lovely house just before wife started her new job (working her notice) and we needed a mortgage offer. Still irks me that at time of completion she would have had 3 months' payslips - but them's the breaks I guess.

[buymeabar]

If you can stall for three weeks and you get your new contract, some lenders (TSB for one) will offer a mortgage based off a signed contract of employment. Other lenders (Barclays) need a solid three months payslips from your role at time of mortgage offer.

I know as we've just been through something similar. Had to say goodbye to Barclays and pay a redemption fee as we found a lovely house just before wife started her new job (working her notice) and we needed a mortgage offer. Still irks me that at time of completion she would have had 3 months' payslips - but them's the breaks I guess.

Edited by buymeabar on Saturday 14th January 22:42

[sociopath]

Rakip123 said:

Hi all


I've recently resigned from my job with my contract ending next week and have no intention of returning to the same team.

I currently live with my parents with my wife, we have been looking to move for a number of years and have saved up enough to cover the deposit at 10%, stamp duty and 8 months mortgage payments.

I have written job offer and the contract for the new role is being processed and will take upto 3 weeks.

I had originally intended to wait 3 months before looking for a home, however one has just come up which is very keenly priced and in a great location, if I apply for a mortgage entering in my current job I could supply the past 3 months mortgage payments and of course bank statements, what would the repurcussion of this be if I managed to secure a mortgage with the old (current job)?

You might find the estate agent won't even entertain you if you don't have an income, never mind the mortgage company, as they can be pretty keen on not spending effort on what they might see as time wasters

[Rakip123]

Thanks all for your helpful advice, went to see the house today however wife isn't so keen so I think I'll take the advice of others and give it a month at least before I start looking again