Help please due to exchange and husband is being made redundant

[MrsEc24]

We are due to exchange on our dream property in a matter of weeks, my husband has just come home to tell me he is being made redundant. He is on 3 months notice, I am in utter shock and can't see any other way but to have to pull out of our sale and purchase, my husband on the other hand wants to still go ahead, he is getting a good package enough to give us 6 months or so but if he doesn't get another job for a while or god forbid the lender find out after exchange we lose so much more than if we pull out now. I don't want to at all but I'm a realist and knowing our luck we would get found out and even if we don't I would be worried sick if he couldn't get a new job! My husband is furious that I want to pull out as he thinks the risks are worth it and the lender will not do any further checks before completion and he will get another job quickly so there is no reason to disclose this information. I don't agree. Some advice would be appreciated.

No advice really except to say I do understand your dilemma.

4 years ago DH and I bought our dream house and we had been living in it for around 3 months when DH was told he would be made redundant. It was a scary time, knowing we had just increased our mortgage and the house needed a lot of work. We had to tighten our belts and we both started looking for work (I hadn't worked for a number of years). Within six months of being made redundant, we both had jobs - though pay wasn't great but we just muddled through. We are still in the house, things are quite tight but I don't regret the sacrifices we've made to stay here. Our jobs are still not entirely safe, and if things take another bad turn, we may just decide to sell up - we do have a reasonable amount of equity now which could mean buying something mortgage free.

Should you pull out of your purchase? I don't know, but what are the reasons for moving? Do you hate where you are? Is the house too small etc etc. Could you work if your DH can't find anything? Good luck, whatever you decide.

You need to have a look at your wider finances and what the shortfall will be. Say, if you'll only be a bit short on your income alone, then I'd go ahead. If the house requires maxing out on mortgage, then I wouldn't move.

You would be in breach of your mortgage conditions which isn't worth the risk IMO. The solicitor will ask you to confirm that nothing has changed since the offer was issued

As others have said you need to look at the wider implications

We're going through a similar situation although not entirely the same (I've just had to take a pay cut after finding our dream house). We've sat and wrote everything down, every income and expense and we'd only be left with a few hundred pounds to do the shopping every month. It's the toughest decision to turn the house down but I keep reminding myself that personal happiness is more important than a house and I would just end up hating that house if it was making us totally skint or putting us into debt, having a child with disabilities as well it would effect him if we suddenly couldn't afford things he made need or help him to develop. Plus, you'd be performing fraud against your mortgage and they legally could revoke the mortgage and you'd lose your house if they found out 😔

I would go ahead but I am quite a big risk taker. If the pay out is substantial and dh is confident that he can find further work then I can't see the difference of it happening now or the day after exchange with regards to the mortgage company.
We moved a couple of months ago and were not asked any questions about change of situation at point of exchange.

There was a very similar thread on moneysavingexpert recently O/P, that wasn't you was it?

All of the replies said the same thing, that you need to report this to your mortgage lender as not informing them of a change in circs could invalidate the offer and you may be committing mortgage fraud.

What happens if he doesn't find another job 6 months down the line? It just seems too risky IMO and I'm not sure I would go ahead.

FWIW we found our after completion that our buyer had lost his job before completion and he decided to go ahead. Not saying you should do it, but obviously he managed to pull it off.