Any mortgage advisors here that can help?

[Newforeverhome]

Posting for traffic.

I have recently purchased a property (offer was accepted last Wednesday) and the mortgage has been agreed. I know the offer is normally only valid for around 90 days or so before I have to re-apply. No onward chain so the process should be fairly straightforward, hopefully. It looks like completion will be towards the end of October if all goes smoothly.

My current situation - I am leaving my job on Monday and then will be doing agency work, earning slightly less up until the end of August. I do have a job lined up which starts in September and pays a lot more than my current salary. I am also receiving an exit package from my current job, however as it is tax free it won't be classed as earnings. I will receive my final payslip next week.

My question is - what happens if I need to re-apply for the mortgage? I will be fine financially as I will already be in my new job by then and also receiving monthly instalments from my current job, but would they query the pay drop for the month of August?. As I will only be out of work for 3 weeks (and not necessarily need the money but would like to work just to keep myself busy) it makes sense to just do some agency work rather than take on a permanent role and leave a few weeks later.

Happy to be told that I'm worrying for no reason but I know things are taking slightly longer due to Covid and I don't want to mess this up!

Thanks

I'm sure it's valid for more than 90 days, I think it's usually 6 months. Loads of house sales don't go through in 90 days.

If you need to reapply then the mortgage company will require up to date proof of income. This could cause a problem depending on how flexible the lender is. They might be able to take proof of your new salary by way of a contract for example

My current mortgage offer which I got in the last couple of weeks is valid until Jan.

Most mortgage offers are six months, be aware your t&c of the mortgage likely say that you will tell the mortgage company about any change of income before drawdown however if you do this you will likely have to reapply on the lower salary etc.
As an advisor I’ve only ever had one person honest enough to do this but it was an absolute nightmare as I couldn’t redo do the mortgage for him.

If you have a mortgage arranged I don’t understand why would you would be asked for paperwork again.

Is it a decision in principle you have, or an actual mortgage?

@Ligglepiggle this is my worry. I know I should be honest about the change of circumstances, especially with my mortgage advisor but I don't want to jeopardise the whole thing for the sake of 3 weeks.

The mortgage was agreed by the underwriter on Tuesday.

A bit stupid of me to change jobs whilst applying for a mortgage. It wasn't the original plan honestly 🤦‍♀️