What's deal if on employment probation & mortgages?

[klink]

Folks this is my situation, and I need some help, as I have finaly come across a property which more or less ticks all the boxes and was considering an offer.

What's the situation if a person is more than half way (8 months) through a job probabtion (12 month) in a permanent role, can the borrower proceed with a mortgage?

Taking into account continous employment for the past 18 months-2 years in roughly same field. The borrower changed jobs specifically to get better salary/employment status in order to get on property lader.

The employer played ball with first salary cert issued on an in-house form stating borrower is in a permanent position (this is true). I cant quite remember if they stated I wasn't on probation (form with bank), but if they said I wasn't then this is clearly incorrect. The first form filler wasn't the usual person I deal with so quite possibly an oversight.

In any case my dilemma is this, due to recent payrise, the lender has requested an updated cert on their own form. It questioned exactly if borrower is still on probation - supervisor who is familar with my employment, had said yes. However the form elaborated and asked if the position is to be permanent and employment likely to continue to which employer stated yes (no problems there). I dont mean to sound arrogant but it is highly unlikely I will be terminated (fingers crossed).

Does this mean I can't proceed with already secured mortgage approval in principal to draw down stage?

Based on the first cert being incorrect, it kind of marks me as being untruthful (bad). If borrower comes clean with lender will this affect borrower's credit rating and ultimate rate at which mortgage is lent? Will borrower be considered sub-prime despite having excellent saving record, 30% deposit and current earning status with good salary increase potential?

Should borrower just wait until probation is up in February?

I have an MD pal who has advised me that if an employee successfully passes a 6 month probation then they are legally permanent - 12 month clause has no grounds? Is this an urban myth? I have passed this but the employer has a standard 12 month period for all employees - any comments on this?

Thanks!

 

[Abacus]

You have two distinct questions - you legal position on permenancy of employment, which I can't answer. On the mortgage salary cert, the most recent document is the one that the lender will use. They may or may not query the discrepancy on permenancy from the previous form, but you have to assume that they will.

Some lenders will accept that a similar role in a similar organistion counts as continuity of employment, where you have moved jobs for the advbancement of career, and you have already completed 8 months and have been happy to lend to, say, contract computer programmers on this basis.

The problem is that a lot of lending work is automated, and that forms are processed through a computer system that allows automatic passge to the next stage if all the boxes can be ticked, by say a clerical person.

If something goes outside the criteria, it might stil be passed but has to be referred to a more snior decision maker, who may act arbitrarily, or refer back to you for clarification.

As such, your progress will depend on which lender you've applied to and how good the rest vof your application looks.

 

[klink]

Thanks Abacus. Nothing is straight forward but I guess when it comes to big money it shouldn't be really (current market turmoil point in case). Much obliged. Think I will go to an FA - more on the pulse than me trying to muddle through this myself.