Mortgage changes on single income
Discussion
Good evening all knowing pistonheads!
We were planning to remortgage our house next month as value has risen quite a bit and our loan to value is now such that we can take some money out to make improvements and still pay less a month over the same term. However, my wife has just quit her job with no new job to go to and no plans to work again soon (mental health issues).
My Salary has gone up slightly but nothing like our joint income was.
I'm under the impression that no lender will touch us while she's out of work (or at least offer us what we want at the cost we want), will it make a difference?
For reference, house was bought for £150k, now worth £200k, 10% deposit, joint salary was £55k ish, will now be £34k.
We were planning to remortgage our house next month as value has risen quite a bit and our loan to value is now such that we can take some money out to make improvements and still pay less a month over the same term. However, my wife has just quit her job with no new job to go to and no plans to work again soon (mental health issues).
My Salary has gone up slightly but nothing like our joint income was.
I'm under the impression that no lender will touch us while she's out of work (or at least offer us what we want at the cost we want), will it make a difference?
For reference, house was bought for £150k, now worth £200k, 10% deposit, joint salary was £55k ish, will now be £34k.
meehaja said:
Good evening all knowing pistonheads!
We were planning to remortgage our house next month as value has risen quite a bit and our loan to value is now such that we can take some money out to make improvements and still pay less a month over the same term. However, my wife has just quit her job with no new job to go to and no plans to work again soon (mental health issues).
My Salary has gone up slightly but nothing like our joint income was.
I'm under the impression that no lender will touch us while she's out of work (or at least offer us what we want at the cost we want), will it make a difference?
For reference, house was bought for £150k, now worth £200k, 10% deposit, joint salary was £55k ish, will now be £34k.
Yes, your income is less and therefore your borrowing capacity is less..........and further reduced by your wife now being classed as a financial dependent now.........We were planning to remortgage our house next month as value has risen quite a bit and our loan to value is now such that we can take some money out to make improvements and still pay less a month over the same term. However, my wife has just quit her job with no new job to go to and no plans to work again soon (mental health issues).
My Salary has gone up slightly but nothing like our joint income was.
I'm under the impression that no lender will touch us while she's out of work (or at least offer us what we want at the cost we want), will it make a difference?
For reference, house was bought for £150k, now worth £200k, 10% deposit, joint salary was £55k ish, will now be £34k.
When you say "just quit her job" is that notice period if so how long?
As if still employed you could quickly pre leaving role get the finances /new mortgage sorted.
It's the same grey area as if your wife is pregnant until she has given birth you are not going to state you have any dependants - let's say you are beyond 30 weeks pregnant would you tell? What about on the 12 week scan?
Or no different to saying job not at risk even though you know restrictive is coming very very soon and possibly at risk
As if still employed you could quickly pre leaving role get the finances /new mortgage sorted.
It's the same grey area as if your wife is pregnant until she has given birth you are not going to state you have any dependants - let's say you are beyond 30 weeks pregnant would you tell? What about on the 12 week scan?
Or no different to saying job not at risk even though you know restrictive is coming very very soon and possibly at risk
Welshbeef said:
When you say "just quit her job" is that notice period if so how long?
As if still employed you could quickly pre leaving role get the finances /new mortgage sorted.
It's the same grey area as if your wife is pregnant until she has given birth you are not going to state you have any dependants - let's say you are beyond 30 weeks pregnant would you tell? What about on the 12 week scan?
Or no different to saying job not at risk even though you know restrictive is coming very very soon and possibly at risk
It's never great to be advising people to commit mortgage fraud............As if still employed you could quickly pre leaving role get the finances /new mortgage sorted.
It's the same grey area as if your wife is pregnant until she has given birth you are not going to state you have any dependants - let's say you are beyond 30 weeks pregnant would you tell? What about on the 12 week scan?
Or no different to saying job not at risk even though you know restrictive is coming very very soon and possibly at risk
If the lender won't lend without the second income, there is a very good reason for that...........................
Sarnie said:
Welshbeef said:
When you say "just quit her job" is that notice period if so how long?
As if still employed you could quickly pre leaving role get the finances /new mortgage sorted.
It's the same grey area as if your wife is pregnant until she has given birth you are not going to state you have any dependants - let's say you are beyond 30 weeks pregnant would you tell? What about on the 12 week scan?
Or no different to saying job not at risk even though you know restrictive is coming very very soon and possibly at risk
It's never great to be advising people to commit mortgage fraud............As if still employed you could quickly pre leaving role get the finances /new mortgage sorted.
It's the same grey area as if your wife is pregnant until she has given birth you are not going to state you have any dependants - let's say you are beyond 30 weeks pregnant would you tell? What about on the 12 week scan?
Or no different to saying job not at risk even though you know restrictive is coming very very soon and possibly at risk
If the lender won't lend without the second income, there is a very good reason for that...........................
But honestly do you ask or have applicants tell you they have just had a 12 week scan and therefore might have a dependant?
Welshbeef said:
Sarnie said:
Welshbeef said:
When you say "just quit her job" is that notice period if so how long?
As if still employed you could quickly pre leaving role get the finances /new mortgage sorted.
It's the same grey area as if your wife is pregnant until she has given birth you are not going to state you have any dependants - let's say you are beyond 30 weeks pregnant would you tell? What about on the 12 week scan?
Or no different to saying job not at risk even though you know restrictive is coming very very soon and possibly at risk
It's never great to be advising people to commit mortgage fraud............As if still employed you could quickly pre leaving role get the finances /new mortgage sorted.
It's the same grey area as if your wife is pregnant until she has given birth you are not going to state you have any dependants - let's say you are beyond 30 weeks pregnant would you tell? What about on the 12 week scan?
Or no different to saying job not at risk even though you know restrictive is coming very very soon and possibly at risk
If the lender won't lend without the second income, there is a very good reason for that...........................
But honestly do you ask or have applicants tell you they have just had a 12 week scan and therefore might have a dependant?
All applications these days will have a "Future Commitments" section where it asks;
- Will any of your income details possibly changing in the future?
- Will you be taking out any credit commitments after completion?
- Will any of your circumstances be changing in the immediate future? Eg child birth, job location.
Some of the above may happen but you just don't know yet, so you can't answer yes. But if you know they are happening and answer know then that's mortgage fraud.
A similar thing happened to me yesterday.....client secured a property and sent me all his details......along with the fact that he starts a new job next week that has a six month probationary period. That extra information changes the path of where this application needs to go........it could be underwritten on the current details......but if the lender asks for a latest pay slip further down the line, it will all unravel when the March pay slip is from a new employer.....we need to make sure that his application goes with a lender who is accepting of the probationary period as a lot will not lend during the probationary period. Going forward, the applicant will know that his application is watertight and not have to worry about being rumbled further down and his application and purchase falling through.
If you want to knowingly commit fraud, then you might get away with it, but be warned, if you get rumbled or suspected of it, you can find yourself on the CIFAS register or the Hunter system which flags you of attempted fraud which will make it very difficult to obtain credit in the future.....like this guy;
http://www.pistonheads.com/gassing/topic.asp?h=0&a...
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