Applying for a Mortgage when my employer is considering a restructuring plan

Hi There, Sorry if I have not posted this in the correct thread.

My bank has 'provisional' approved me for a mortgage. I have been working in my job just over 5 years.

7 months ago my employer announced a restructuring plan or a possible sale of the company. As of yet we have not been given any further details or information as to what is happening with the company.

My payroll department have completed the employer section of my mortgage application form and they did say I am a permanent employee. My worry is, that the bank will do a check on my employer and they will see that the company is under a restructuring plan or even a possible sale of the company.... If this is the case will my application be rejected even tho my employer said my position is permanent???

I think the question you should be asking yourself is whether it is wise to take on a mortgage when there is a chance your job is under threat, but to your specific question, unless it's been publicised, it's unlikely that the bank will look too deep into it.

Thanks for the reply. My employer is an American Limited company, they did make the restructuring plan public... If the bank do a search online they will see all press releases

If I am made redundant I will get a good settlement package and I also have some savings that will see me through until I get another job..

there is a chance they will look into it...I would be carefully about paying a desposit and not being able to get a mortgage

kildon said:

there is a chance they will look into it...I would be carefully about paying a desposit and not being able to get a mortgage

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The initial deposit would be refundable. I think the bank will likely check with the employer that the information on the salary cert still stands before they give the loan cheque. In terms of the restructuring is your dept within the company safe or is it likely you would lose your job. TBH if you are thinking you will lose your job then you should not get a mortgage.