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AIBU?

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Original poster

What happens if I lose my job after exchange?

16 replies

DemelzaPoldark9 · 23/12/2018 17:15

Not AIBU but need advice.

Due to buy a house in 6 weeks or so. However, I am very anxious about the 'what ifs.' I was made redundant earlier this year so I know how quickly it could happen, and while I've been at my new job 8 months I'm not particularly confident about it.

What happens if I lose my job after exchange but before completion? Would we lose the mortgage offer entirely, and our entire deposit? it's keeping me up at night. If we lose our savings it would be absolutely devastating as we'll never save it up again.

Please don't tell me to wait until I've got a stable, secure job as they don't seem to exist, redundancy can happen to anyone.

OP posts:
BikeRunSki · 23/12/2018 17:17

Have you considered income protection insurance? It’s not cheap, but it might give you some peace of mind.

MrsStrowman · 23/12/2018 17:19

Exchange to completion is usually a few days, it would be highly unlikely to lose a job in such a short space of time with no clue before hand, also in that period of time who would know? All paperwork is done and submitted already.

Mascarponeandwine · 23/12/2018 17:20

Ask the solicitor if you can exchange and complete within a couple of days to minimise the risk of being made redundant in the interim period of time?

Also redundancy takes weeks with consultations etc? So you could be told your job is at risk but just officially be made redundant til weeks later?

missbattenburg · 23/12/2018 17:23

So you could be told your job is at risk but just officially be made redundant til weeks later?

You could but my mortgage offer contained a condition that I had to tell the bank if, at any point, I had reason to suspect my circumstances might change. Being told you were at risk of redundancy would qualify and you would have to tell the bank, I think.

Original poster
DemelzaPoldark9 · 23/12/2018 17:25

@Mascarponeandwine they only have to do the consultation period if you have been there 2 years. My contract says before this period, they reserve the right to dismiss me immediately as long as they pay my notice.

OP posts:
Stuckforthefourthtime · 23/12/2018 17:28

That's what income protection insurance is for. As others say, move quickly from completion to exchange and make sure you have insurances set up correctly. Often you'll get better deals if you do these separately from the mortgage, so contact an independent broker if possible.

Jimdandy · 23/12/2018 17:29

Being honest, yes if that happens you will lose your deposit if they withdraw the mortgage.

Are you in a chain? If not can you do simultaneous exchange and completion?

trevthecat · 23/12/2018 17:29

I've wondered this same thing and were not far from completing. Do not say anything! The chances are the mortgage provider wouldn't find out.

Original poster
DemelzaPoldark9 · 23/12/2018 17:36

We are not in a chain.

I thought income protection insurance was more for if you lose your job while paying for a mortgage, rather than if you lose it before being given the monies? Any knowledge on this would be welcome.

OP posts:
LaurieFairyCake · 23/12/2018 17:50

Nothing. The mortgage offer is agreed before exchange.

You could die before completion and your heirs would still own your house (I think)

But you don't communicate with your mortgage company after exchange. The solicitor moves the money (you won't tell them)

If you wanted to get out you may be sued for costs.

Jimdandy · 23/12/2018 17:57

It is unlikely they will find out. The last minute checks they do are more to do with your credit rating. Don’t tell anyone. If your Solicitor is also acting for your lender then she will be obliged to tell them.

speakingtruthfully · 23/12/2018 18:26

Exchange and complete at the same time

missbattenburg · 24/12/2018 17:04

Do not say anything! The chances are the mortgage provider wouldn't find out.

I agree it's unlikely. It's also mortgage fraud so just keep that in mind.

MonkeyfaceThereturn · 24/12/2018 17:10

Mortgage fraud means nothing.

I was DESPERATE to get rid of a house I owned. In the days of 120% interest only mortgages. I wanted to just post the keys back, take the deficit and go bankrupt.

They wouldn't bloody let me 😂
I TOLD them I was renting it out without consent and they didn't care. I TOLD them I had no buildings insurance so they were better off repossessing immediately. They didn't care. Bloody bastards let me rent it out for years and wouldn't take action! I kept ringing them telling them I was breaking every term I could find but they just didn't care. As it was, I managed to keep paying the mortgage with the rent and finally offloaded it and broke even.

But honestly you can over think these things. Just don't talk to anyone in between exchange and completion.

Hellozzz · 24/12/2018 17:24

It is no good overthinking it- you are where you are.

You have the mortgage offer and it is good for 6 months.
They will not check that you are employed after exchange as you have already provided the paperwork. You would have to sign the paperwork saying nothing has materially changed

They can withdrawal the offer if they find out if the criteria has changed. I do know 3rd hand where this has happened when the deposit was loaned by a 3rd party and the 3rd party was unwilling to waiver all rights to the money!!

To protect yourself I would be applying for jobs now.

Bluelady · 24/12/2018 17:26

You keep your mouth shut. How is anyone going to know unless you tell them?

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