Mortgage - Change of Circumstances
Discussion
Afternoon Chaps,
Long term lurker here.
I have a question regarding a change in circumstances since my mortgage application.
My fiancee and I made our application on the basis of our current jobs and sent all the required payslips, proof of deposit etc. to the lender.
Lender has come back with our offer and told us to speak to our solicitor to arrange completion.
Two days after the offer was received my fiancee lost her job. She is obviously currently looking for a new one.
Repayment of the mortgage isn't an issue as they would lend me more than enough money on my own (but not quite enough if I count my fiancee as unemployed/housewife).
Thoughts:
1. Say nothing. Fiancee should have a job (hopefully) by time we complete and not actually a material change in ability to make payments (payments are about 30% of my take home).
2. Tell the Lender and see what they say.
(a) If have to change mortgage, should this process be quicker than the previous approval process?
(b) Change mortgage to an individual mortgage and just have the house in both our names.
I suppose what I am asking is whether the Lender is likely to do any further cheques prior to funds being drawn down.
Long term lurker here.
I have a question regarding a change in circumstances since my mortgage application.
My fiancee and I made our application on the basis of our current jobs and sent all the required payslips, proof of deposit etc. to the lender.
Lender has come back with our offer and told us to speak to our solicitor to arrange completion.
Two days after the offer was received my fiancee lost her job. She is obviously currently looking for a new one.
Repayment of the mortgage isn't an issue as they would lend me more than enough money on my own (but not quite enough if I count my fiancee as unemployed/housewife).
Thoughts:
1. Say nothing. Fiancee should have a job (hopefully) by time we complete and not actually a material change in ability to make payments (payments are about 30% of my take home).
2. Tell the Lender and see what they say.
(a) If have to change mortgage, should this process be quicker than the previous approval process?
(b) Change mortgage to an individual mortgage and just have the house in both our names.
I suppose what I am asking is whether the Lender is likely to do any further cheques prior to funds being drawn down.
If you tell the lender they will withdraw the offer and the application with go back to underwriting to be re-assessed at which point the will re-offer the case but at the lower amount to take into account that your wife is now a dependant.
If you don't tell them, it's essentially mortgage fraud as it will explicitly state on the mortgage offer that you are required to inform them of any material changes that occur after the offer is produced.
Most people will tell you to not say anything and don't worry about it, naturally as broker myself, I couldn't and wouldn't give that advice.
If you don't tell them, it's essentially mortgage fraud as it will explicitly state on the mortgage offer that you are required to inform them of any material changes that occur after the offer is produced.
Most people will tell you to not say anything and don't worry about it, naturally as broker myself, I couldn't and wouldn't give that advice.
Id say don't tell them but being at offer stage only it may be risky - they could potentially ask further questions even after offer stage but before you get the money.
My missus quit work to train as a teacher about half way through our fixed term and we didn't say anything, just kept up the repayments as normal. In fact we recently remortgaged and mentioned the fact she hadnt been working for a while - they didnt bat an eyelid as to their eyes nothing changed during the time on their end.
If you tell them they will certainly retract the offer and make you start again - obviously you won't be able to borrow as much etc.
My missus quit work to train as a teacher about half way through our fixed term and we didn't say anything, just kept up the repayments as normal. In fact we recently remortgaged and mentioned the fact she hadnt been working for a while - they didnt bat an eyelid as to their eyes nothing changed during the time on their end.
If you tell them they will certainly retract the offer and make you start again - obviously you won't be able to borrow as much etc.
Edited by vescaegg on Wednesday 1st May 17:07
vescaegg said:
Id say don't tell them but being at offer stage only it may be risky - they could potentially ask further questions even after offer stage but before you get the money.
My missus quit work to train as a teacher about half way through our fixed term and we didn't say anything, just kept up the repayments as normal. In fact we recently remortgaged and mentioned the fact she hadnt been working for a while - they didnt bat an eyelid as to their eyes nothing changed during the time on their end.
If you tell them they will certainly retract the offer and make you start again - obviously you won't be able to borrow as much etc.
There is no requirement to inform the lender if you change job or stop working, once the mortgage completes. When you remortgage with the same lender they will not re-credit score you or go through a whole new application, it's just a continuation of the original application.My missus quit work to train as a teacher about half way through our fixed term and we didn't say anything, just kept up the repayments as normal. In fact we recently remortgaged and mentioned the fact she hadnt been working for a while - they didnt bat an eyelid as to their eyes nothing changed during the time on their end.
If you tell them they will certainly retract the offer and make you start again - obviously you won't be able to borrow as much etc.
Edited by vescaegg on Wednesday 1st May 17:07
The OP is at a delicate stage of the process and he hasn't completed yet, therefore he is required to inform the lender of any material changes. Whether he does or not is up to him.
Sarnie said:
vescaegg said:
Id say don't tell them but being at offer stage only it may be risky - they could potentially ask further questions even after offer stage but before you get the money.
My missus quit work to train as a teacher about half way through our fixed term and we didn't say anything, just kept up the repayments as normal. In fact we recently remortgaged and mentioned the fact she hadnt been working for a while - they didnt bat an eyelid as to their eyes nothing changed during the time on their end.
If you tell them they will certainly retract the offer and make you start again - obviously you won't be able to borrow as much etc.
There is no requirement to inform the lender if you change job or stop working, once the mortgage completes. When you remortgage with the same lender they will not re-credit score you or go through a whole new application, it's just a continuation of the original application.My missus quit work to train as a teacher about half way through our fixed term and we didn't say anything, just kept up the repayments as normal. In fact we recently remortgaged and mentioned the fact she hadnt been working for a while - they didnt bat an eyelid as to their eyes nothing changed during the time on their end.
If you tell them they will certainly retract the offer and make you start again - obviously you won't be able to borrow as much etc.
Edited by vescaegg on Wednesday 1st May 17:07
The OP is at a delicate stage of the process and he hasn't completed yet, therefore he is required to inform the lender of any material changes. Whether he does or not is up to him.
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