To not tell my mortgage lender?

[uhhuhhoney]

I got a decision in principle last month (lasts for 3 months) from my bank, based on my current job and salary. However, just finished my job and moving to a new job next week on a temp contract (more money). Should I tell the mortgage lender and get a new DIP based on temp contract? I don't want to get done for fraud or something if I have an offer accepted and go ahead

I would tell them in case anything happens during the rest of the house pro

Process*

No experience but it feels like you should be honest and open. Did.they know your last job was a contract? I'm guessing they will want payslips etc so you will need to provide evidence

Yes. The decision in principle is based on very basic information. When you get the main offer they will check pay slips etc so they would be made aware then.

there may be issues with a temporary contract. I know my colleague couldn't apply for a mortgage until she had been on her temporary contract for a certain length of time.

I imagine they will recheck these type of details before you close on the property and will find out.

As other PP have said, the mortgage in principle actually means very little. It's good to have as in theory, the bank will lend up to this amount. However, once your offer is accepted you will need to provide a much more detailed audit of your finances including pay slips, P60s and we had to go through our monthly expenditure to ensure affordability.

I think non-disclosure could cause you lots of issues in the longer term.

We needed to show 3 months of pay slips for the actual mortgage. I wouldn't think they'd be that happy with a change of job and temporary contract

The decision in principle doesn't mean much, if you find a property you like you'll need to submit a full application and I would think it's almost impossible to lie about your employment then as they will ask for payslips and a bank statement showing your latest salary credit. A good broker might find someone willing to lend to you with a temporary contract.

You will have to tell them, as when the actual application goes through (an AIP isn’t an application) all your information will have to be correct.

Tell them. They'll have to do a new affordability calculation based on your new earnings. Somewhere in your original DIP it will say to alert the bank to any 'change in circumstances'. Failure to do so would be fraud and result in the original offer being withdrawn, the bank refusing to do more business with you/blacklisting you and/or if they find out post exchange, you would lose a lot, lot more. Not worth the risk.

Forgot to say: most banks will ask for an updated bank statement/payslip at the point of exchange/completion just to make sure everything is as it was at the point of application. If not, you could get into a lot of trouble.

Some mortgage underwriters will also check the HMRC website to verify your employment.

When you want to go to full application, the first question the mortgage adviser will ask you is if anything has changed since you got the mortgage promise - so you'll have to tell them then. You'll also need to provide payslips so unless your adviser is very dim, they'll notice your employer has a different name!

Being on a temporary contract may or may not be a problem - lenders differ in their policy so the best thing to do is tell them now, best to find out sooner than later if you need to look elsewhere for a mortgage.

If you go down the route of a full application you would have to disclose otherwise it would be fraudulent?

Thanks all. The job I have left was a perm contract and my employer has technically not changed - maybe I should have mentioned that. But never mind, understood. Thank you!