Have letter of offer from bank - redundancy looming

S

Sellotape

Guest
We have letter of offer from bank on house but one of us has just been told that their job is ending and they will be made redundant. We have not signed contracts yet but almost at that stage. If the bank find out will they cancel our approval? Even in this economy person being made redundant would find a job easier than most so we still want to go ahead. Advice needed urgently!!
 
If the bank finds out then they could cancel approval.

As you already have the loan offer, it is unlikely they will contact your places of employment again.
 
At the very least I'd have to question your judgement. Entering into a mortgage agreement in the full knowledge that one of you is going to be made redundant is the height of insanity. There are no excuses or "yeah, buts ... ".

Put your house buying plans on hold until you have found a new job.

NorfBank said:
If the bank finds out then they could cancel approval.

As you already have the loan offer, it is unlikely they will contact your places of employment again.
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Typical advice from a mortgage broker.
 
Howitzer I apprecaite your concern but going into this with eyes wide open and know what we are doing
 
In that case tell the bank of your changed circumstances. Their offer of a mortgage is based on your ability to pay. If they decide you no longer posses the ability to pay the mortgage then the decision is taken out of your hands. If they continue with the offer you can proceed confident in the knowledge you have made a prudent decision.

If your other half is also made redundant in the forseeable you will more than likely not be eligable for Mortage Interest Supplement as you appear to have misled your lender, taking out a mortgage that may be beyond your ability to repay.

http://www.citizensinformation.ie/c...-welfare-schemes/mortgage_interest_supplement
 
Op - If you KNOW that one of you is being made redundant I think you would be mad to go ahead with this. Whats the rush? Cant you wait until the person being made redundant gets a job? You say they will have a job quickly - unless you have a crystal ball you cant know how quickly that will be - if quickly at all.

Youve everything to lose if you go ahead, you can only gain if you wait.
 
Thanks again for your concern but not really what I am looking for. Not looking for advice on what people think is wrong or right. My original question again - at this late stage in the process will the bank find out that one of us looks likely to lose there job?
 
It's hard to give a response to this without knowing the full facts. You say your OH can get a job easily enough, however, to be on the safe side, have you done the maths to see if they don't get a job, can you afford to meet your repayments?.

Secondly will your OH get a redundancy payment and if so, can that be used to reduce your mortgage committments in a few months time?

If you do postpone and your OH does get another job, bear in mind that in the current climate banks may be less willing to lend you the same amount for a while as your OH may still be on probation in their new job. Hence it could be 12-18 months before you get approval again
 
Sellotape said:
Thanks again for your concern but not really what I am looking for.
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Sounds like what you are looking for is someone to say 'oh its fine, the bank wont have a clue' - which is not something anyone here can tell you (see earlier crystal ball comment).

It also sounds like you have your mind made up to go ahead and nothing anyone here says is going to change that - despite people pointing out the bigger picture to you.
 
 
Sellotape said:
We have letter of offer from bank on house but one of us has just been told that their job is ending and they will be made redundant. We have not signed contracts yet but almost at that stage. If the bank find out will they cancel our approval?
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If the numbers don't add up on one salary then yes imo.
 

Answering your question Sellotape, the bank might find out but it is unlikely. They can do a spot check with your employer at any time up to cheque issue.
 
Bank may look for details from employer again right up yo the day you draw down.

I bought a property that took a year to complete .... every so often proof of repayment ability had to be provided ... right up until drawdown.

Regardless ... drawing down a loan where redundancy is imminent is financially not advisable.
 
As far as I was aware (I'm open to correction) you are obliged to inform the bank. Read all the material you got in relation to the mortgage. It is like insurance that you are obliged to inform them of any material fact. Being made redundant is a material fact regardless of how easy or quickly you think the person will get a job.
If you don't inform them and they find out they may not grant you permission in the future so bear that in mind too.
 
Sellotape - can you afford to pay the mortgage on the remaining salary.

Yes or no.

As long as the bank are get their mortgage payment in full, on time, every month they wont give a flying fork. And neither should you.
 
My bank rang my employer the day of or the day before my cheque was being issued to make sure I was still working there and would be in the future! I don't know if that's normal practice but that's what happened in my case and that was nearly 2 years ago now.
 
So this fella is wondering if he can avoid getting caught for the financial version of drink driving?
 
I know of one lender who calls the employer before check issue to check on employment status.....this type of check could become the norm across lenders to prevent exactly what your trying to do...madness to be honest
 
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