Will RBS contact my employer before mortgage drawdown?

[Qwerty911]

The initial message was deleted from this topic on 04 January 2022 at 08:41

[dalenorth]

Highly unlikely

[Northernboy]

Qwerty911 said:

We are waiting to move into a new house in January, the mortgage is all fully approved with RBS. I have just been made an attractive job offer, does anyone know if RBS is likely to check with my current employer before final release of funds, as I would likely still be working my notice!

They won’t, but you will be committing mortgage fraud if you don’t inform them of your change of circumstances.

[PH_77]

Northernboy said:

Qwerty911 said:

We are waiting to move into a new house in January, the mortgage is all fully approved with RBS. I have just been made an attractive job offer, does anyone know if RBS is likely to check with my current employer before final release of funds, as I would likely still be working my notice!

They won’t, but you will be committing mortgage fraud if you don’t inform them of your change of circumstances.

Indeed. Beware of the consequences of committing mortgage fraud. It could be ruinous for you....

https://www.bbc.co.uk/news/uk-scotland-glasgow-wes...

Or the Scottish Government...

“The cost of the trial is thought to have been about £7.5m, with more than £2.4m in legal aid paid for defence lawyers.”

[Qwerty911]

The “technicality” of mortgage fraud would only occur if they don’t check! I am reasonably comfortable they won’t check later and making the mortgage payments thereafter is not an issue. I would really would like to accept this job, but if the bank does do a last minute check with my current employer while I’m working my notice, they probably wouldn’t release the funds, the purchase would fail and my wife wouldn’t be happy, she really wants the house!
I am just trying to assess the practical risk of the bank checking?

[Glade]

I think a certain number get referred for a last minute audit, but whether they contact employers is another question.

A week before we were due to complete my GF got made redundant. I called the bank and the bloke basically said (without saying), thanks for doing the right thing, but we were basically home free and now he needed to re-do the affordability checks.

Everything was ok on my powerfully built PH director's salary alone, but I got the feeling if we'd have said nothing it would have been fine.

[Killer2005]

Qwerty911 said:

The “technicality” of mortgage fraud would only occur if they don’t check!

I hope you don't use that rationale in the rest of your life. Just do the right thing and be honest.

[WonkeyDonkey]

PH_77 said:

Indeed. Beware of the consequences of committing mortgage fraud. It could be ruinous for you....

https://www.bbc.co.uk/news/uk-scotland-glasgow-wes...

Or the Scottish Government...

“The cost of the trial is thought to have been about £7.5m, with more than £2.4m in legal aid paid for defence lawyers.”

And they try and say crime doesn't pay....

[Northernboy]

Qwerty911 said:

The “technicality” of mortgage fraud would only occur if they don’t check!

This is really poor.

You are talking about committing criminal fraud. Why not instead do the right thing and accept that there’s a reason why they may not lend if someone is starting a new job?

[halo34]

Or on a more positive note.

If its a similar line of work, better paid and evidenced - then its likely not to cause any issues.

[alistair1234]

Not sure what the issue is? Surely if it's a better paid job then the approval won't now be recinded?

When I last re-mortgaged Nationwide advised they would class me as employed even if I didn't have a job but I had one starting within the next 90 days.

[Killer2005]

alistair1234 said:

Not sure what the issue is? Surely if it's a better paid job then the approval won't now be recinded?

This. If its better paid then there wouldnt be any particular issue. They may want a copy of new contract but they may also just let it go through anyway.

Being the cynical type, does it suggest that OP will have a lower paid job which could affect the lending?

[AyBee]

Can you not just get the new offer to wait until early next year? If they're that keen on you, they'll wait.

[HootersGsy]

alistair1234 said:

Not sure what the issue is? Surely if it's a better paid job then the approval won't now be recinded?

When I last re-mortgaged Nationwide advised they would class me as employed even if I didn't have a job but I had one starting within the next 90 days.

Some lenders get a bit touchy if you're in a probation period as theoretically you could be sacked for relatively trivial reasons.

[Qwerty911]

I was hoping for some insight into my question whether RBS is likely to check? The morals of my action are my issue. The potential new job is equivalent income and well above that needed for the mortgage. It’s with a company that I’ve long had an interest in joining. But I am wary about causing a problem with the mortgage/house sale and I don’t want to risk asking the bank in case it’s a question best not asked.

[Killer2005]

Qwerty911 said:

I was hoping for some insight into my question whether RBS is likely to check? The morals of my action are my issue. The potential new job is equivalent income and well above that needed for the mortgage. It’s with a company that I’ve long had an interest in joining. But I am wary about causing a problem with the mortgage/house sale and I don’t want to risk asking the bank in case it’s a question best not asked.

If you're on higher income then you should have no issues with it. It's not going to be needed for affordability they may not need any documentation for it.

I'd rather worry about additional questions now, rather than down the line because you failed to declare something causing additional checks on you.

[LeoSayer]

Read the conditions of the mortgage offer and follow that.

Does it say what you should do if there is a change to the circumstances under which the offer was made?

All this talk of fraud is a bit extreme.

[Killer2005]

LeoSayer said:

All this talk of fraud is a bit extreme.

Failing to declare change in circumstances is technically mortgage fraud.

[LeoSayer]

Qwerty911 said:

I was hoping for some insight into my question whether RBS is likely to check? The morals of my action are my issue. The potential new job is equivalent income and well above that needed for the mortgage. It’s with a company that I’ve long had an interest in joining. But I am wary about causing a problem with the mortgage/house sale and I don’t want to risk asking the bank in case it’s a question best not asked.

This is about more than morality.

Maybe you start your new job, fail the probation and can't make the repayments. They might start asking questions then.

It's not easy to think through all the unintended consequences of a white lie, but some of them could be devastating.

[FarmyardPants]

If you're working your notice at the time of mortgage completion you're technically still working there.

Do people always tell their lender when they change jobs? I doubt it.