Redundancy....should we tell bank?

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bragan

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My Fiancé and I got a mortgage approved from AIB Bank, We are due to draw down on the first stage in the next 4 weeks. Construction work has already begun.

My Fiancé has been told that there is going to be redundancies at his place of work within the next 30 days. He reckons he has a 50:50 chance of been made redundant. But we will know one way or anther by next Tuesday.

Are we under any legal obligation to inform the bank in our change of circumstances? We are thinking about continuing with the house, as I still earn a good wage, and we think we will be able to afford the repayments. Our only concern is if we tell the bank, they won't allow us to draw down on the mortgage.
 
First of all i'd wait untill next tuesday before you do anything you may have nothing to worry about, but if the worst should happen you have to be very careful about what you do. When i applied for my mortgage both of us were in good jobs but we were planning on setting up our own business, we didn't tell the banks this and as soon as we had got the money from them we gave up our jobs. If we had of told the banks they never would of given us the mortgage we were told this by our broker so he advised us not too say anything. Since your drawing down in stages will the bank still want information from you like wage slips and bank statements before the next draw down? If they do then your going to have problems cause your fiance's wages wont be going into the account anymore. Also you said we "think" we will be able to afford, i'd make sure 100% that you can definatley afford the repayments. The only other way around it is if you could apply for the mortgage on your own, if your partner does lose his job.
 
samanthajane said:
First of all i'd wait untill next tuesday before you do anything you may have nothing to worry about, but if the worst should happen you have to be very careful about what you do. When i applied for my mortgage both of us were in good jobs but we were planning on setting up our own business, we didn't tell the banks this and as soon as we had got the money from them we gave up our jobs. If we had of told the banks they never would of given us the mortgage we were told this by our broker so he advised us not too say anything. Since your drawing down in stages will the bank still want information from you like wage slips and bank statements before the next draw down? If they do then your going to have problems cause your fiance's wages wont be going into the account anymore. Also you said we "think" we will be able to afford, i'd make sure 100% that you can definatley afford the repayments. The only other way around it is if you could apply for the mortgage on your own, if your partner does lose his job.
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Thanks samanthajane.

I say I "think" we can afford to pay the mortgage, because I guess you always have a doubt about these things. But I currently earn more than twice our mortgage repayments per month. Plus if the worst does happen and my partner struggles to get another job (which he will) he will also be entitled to dole money. We will have enough to cover mortgage, bills and living expenses.
 
Good question....thats been on my mind a lot lately. I work in an IT company. We have been told that our company has done well for the previous financial year (ending june09). They don't expect to do as well for the next financial year.

That been said, my company is still hiring, so I'm taking that as a good sign. I'm also working in a team that is currently way understaffed, so if there were to be job losses, we wouldn't be the first team hit.
 
If your income is twice the mortgage repayments plus for the moment what your partner is earning and i dont mean to sound rude when i say this but you must be at the higher end of comfortable, meaning you can afford to go out for drink/meals/cinema annual holiday both drive nice cars ect ect If it did end up just being your wage you would be left with half your total income for food, bills and day to day expenses which doesn't leave much "you" money. If your prepared to deal with that then i dont see why you shouldnt go ahead, if you really want this house then you can put up without all the extra's. This time last year i was driving a new car, booking holidays, and generally if i wanted something i was able to go out and buy it. And i'm not complaining cause there are others out there in a worse situation than me but i have to be honest i'm a bit peeved that i probably wont be able to afford to go on holiday this year like i have done in previous years, i'm down sizing my car and i really have to think when i buy things... do i actually need this or do i just want it. And when your used to living a certain way it's hard to restrict yourself sometimes.

Like i mentioned before if you can find out if the bank will ask for more information before you draw down again. I'm assuming your building your own home since your drawing down in stages. Did you have to buy the land aswell? Not to be negative at all but if your half way through building your house the bank requests additional information and see that your down to one wage and decided not to give you the remainding money ( if they can even do that- no one has actually said if they would do that or not) then you would be left with a half built house and still have to repay the amount that you have already borrowed.

Anyway i'm keeping my fingers crossed for you and your fiance for next tuesday that he doesn't lose his job. Let me know whats happens.
 
I wish we had a new car or went on holidays! At the moment we are renting, and saving any left over money for A) our house and B) our wedding next year. Our next holiday will be our honeymoon!

I don't know if we need to re-submit payslips etc. I will be talking to the bank later today to confirm some other things, so I will ask them.

Thanks for the advice everyone. Hopefully I won't need to follow it!
 
bragan said:
Good question....thats been on my mind a lot lately. I work in an IT company. We have been told that our company has done well for the previous financial year (ending june09). They don't expect to do as well for the next financial year.

That been said, my company is still hiring, so I'm taking that as a good sign. I'm also working in a team that is currently way understaffed, so if there were to be job losses, we wouldn't be the first team hit.
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Hi Bragan,

If your job is as secure as you say then I wouldnt tell the bank anything.

I work in IT aswell.

What company do you work for that is still hiring?
 
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