Job change after mortgage offer and contracts exchange

Job change after mortgage offer and contracts exchange

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Discussion

norman156

Original Poster:

2,048 posts

137 months

Thursday 27th June 2013
quotequote all
Evening all,

Have a mild dilemma on my hands. We're currently part-way through getting a mortgage on a new-build property. We've just had our offer, and will be exchanging contracts shortly. After that, we'll be waiting until September/October for when we start paying the mortgage, when the property will be built and finished.

I have however seen a job I'd rather like to go for. If on the off chance I'm successful (a long shot with the sort of job it is, but worth considering), I'd likely be starting the job after we exchange contracts, but before we start paying the mortgage. The question is, would changing jobs at that stage of the mortgage process matter? Is it too late by that point, or would we still be obligated to notify the lender, and potentially derail proceedings?


garyhun

26,701 posts

169 months

Thursday 27th June 2013
quotequote all
I'm pretty sure it will matter but I would guess a very large % would keep quiet about it as potentially that's your mortgage offer retracted.

Vince70

1,883 posts

135 months

Thursday 27th June 2013
quotequote all
Keep stum would be my advice, you don't really want to complicate matters more than you have to when buying and selling.

I got my mortgage offer 2 days before being laid off work and just used the redundancy money to pay the mortgage for a few months.

It's not worth rocking the boat.

Sarnie

6,048 posts

150 months

Friday 28th June 2013
quotequote all
norman156 said:
Evening all,

Have a mild dilemma on my hands. We're currently part-way through getting a mortgage on a new-build property. We've just had our offer, and will be exchanging contracts shortly. After that, we'll be waiting until September/October for when we start paying the mortgage, when the property will be built and finished.

I have however seen a job I'd rather like to go for. If on the off chance I'm successful (a long shot with the sort of job it is, but worth considering), I'd likely be starting the job after we exchange contracts, but before we start paying the mortgage. The question is, would changing jobs at that stage of the mortgage process matter? Is it too late by that point, or would we still be obligated to notify the lender, and potentially derail proceedings?
It would only be an issue if;

A) you were going on to a lower salary
B) the new position had a probationary period
C) you are going from PAYE to being self employed

norman156

Original Poster:

2,048 posts

137 months

Friday 28th June 2013
quotequote all
Sarnie said:
norman156 said:
Evening all,

Have a mild dilemma on my hands. We're currently part-way through getting a mortgage on a new-build property. We've just had our offer, and will be exchanging contracts shortly. After that, we'll be waiting until September/October for when we start paying the mortgage, when the property will be built and finished.

I have however seen a job I'd rather like to go for. If on the off chance I'm successful (a long shot with the sort of job it is, but worth considering), I'd likely be starting the job after we exchange contracts, but before we start paying the mortgage. The question is, would changing jobs at that stage of the mortgage process matter? Is it too late by that point, or would we still be obligated to notify the lender, and potentially derail proceedings?
It would only be an issue if;

A) you were going on to a lower salary
B) the new position had a probationary period
C) you are going from PAYE to being self employed
No mention of salary, but I'd expect it to be a little lower. No mention of a probationary period either. So presumably then, would I be obligated to tell them if I got the job, even if we have exchanged contracts by that point? At what point does it not matter, after we've made the first payment?
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Sarnie

6,048 posts

150 months

Friday 28th June 2013
quotequote all
norman156 said:
No mention of salary, but I'd expect it to be a little lower. No mention of a probationary period either. So presumably then, would I be obligated to tell them if I got the job, even if we have exchanged contracts by that point? At what point does it not matter, after we've made the first payment?
You would be obliged to tell them at any point before the mortgage completes. Even if the salary was lower, if it still fits on affordability, then there'd be no problem.

Bohally

943 posts

88 months

Monday 8th June 2015
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Hi OP,

Did anything come out of this? I am in a very similar situation. It looks like I am going to settle on a new build tomorrow and I have been offered a new post today. We have a joint application and my salary will be staying exactly the same - and I'll be saving around £250 a month on travel so no worries on the affordability front.

I am wary of informing the broker just now incase it knackers the whole process. Do I just sit tight and let the lender know if they ask? Do they tend to do final checks just before settlement?

Sarnie

6,048 posts

150 months

Monday 8th June 2015
quotequote all
Bohally said:
Hi OP,

Did anything come out of this? I am in a very similar situation. It looks like I am going to settle on a new build tomorrow and I have been offered a new post today. We have a joint application and my salary will be staying exactly the same - and I'll be saving around £250 a month on travel so no worries on the affordability front.

I am wary of informing the broker just now incase it knackers the whole process. Do I just sit tight and let the lender know if they ask? Do they tend to do final checks just before settlement?
Will the new job have a probationary period?

vanordinaire

3,645 posts

103 months

Monday 8th June 2015
quotequote all
I'm in a similar situation, have signed up for a self build mortgage based on our joint salaries(but haven't drawn down any cash yet). We've worked out that we can save the equivalent of more than 2 years of my salary if I leave my job and work on the project myself for one year rather than using a contractor. We can easily afford the repayments on my wife's salary so it makes financial sense but not sure how the mortgage people will look at this.

davepoth

29,394 posts

140 months

Tuesday 9th June 2015
quotequote all
vanordinaire said:
I'm in a similar situation, have signed up for a self build mortgage based on our joint salaries(but haven't drawn down any cash yet). We've worked out that we can save the equivalent of more than 2 years of my salary if I leave my job and work on the project myself for one year rather than using a contractor. We can easily afford the repayments on my wife's salary so it makes financial sense but not sure how the mortgage people will look at this.
How are you set if the interest rate doubles?

vanordinaire

3,645 posts

103 months

Tuesday 9th June 2015
quotequote all
davepoth said:
vanordinaire said:
I'm in a similar situation, have signed up for a self build mortgage based on our joint salaries(but haven't drawn down any cash yet). We've worked out that we can save the equivalent of more than 2 years of my salary if I leave my job and work on the project myself for one year rather than using a contractor. We can easily afford the repayments on my wife's salary so it makes financial sense but not sure how the mortgage people will look at this.
How are you set if the interest rate doubles?
No problems with that, it's not a huge mortgage, either as a proportion of the house value or my wife's salary. Like the OP, I think the biggest problem would be notifying the lender and having to go all through the process again, so just wondering whether I really need to tell them.

Sarnie

6,048 posts

150 months

Tuesday 9th June 2015
quotequote all
vanordinaire said:
...........................................so just wondering whether I really need to tell them.
I think you know the answer to that question...........