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Original poster

Do banks check with employers when you buy a new house?

26 replies

Mindfullness · 27/05/2017 19:00

In short, we are relocating but need my current salary to buy a new property.
My concern is I do not want my employers to find out until the sale has completed.
We have a large deposit (300k) so am hoping this will go in our favour?
Any advice gratefully received xx

OP posts:

CotswoldStrife · 27/05/2017 19:06

Ask your mortgage provider what references they need. It is usual to contact an employer and I expect that they would.

ijustwannadance · 27/05/2017 19:10

No one contacted our employers. They had access to bank accounts to prove wages were being paid and earnings. No one asked for any references.

mrsnoon · 27/05/2017 19:15

We've just completed on a house - as far as I know no enquiries were made with employers, the broker just needed to see 3 months pay slips and bank statements.

Eminybob · 27/05/2017 19:17

Are you leaving your current job when you relocate?
Do you have another job to go to?
You really can't use your current income on the application if it's not going to be ongoing. And any mortgage adviser worth their salt will question you about your future job plans.

Original poster

Mindfullness · 27/05/2017 20:08

I will be leaving my current job and will look for another when I move.

OP posts:

SayNoToCarrots · 27/05/2017 20:22

Your employers don't need to know you are moving. You could have other reasons for buying a house wherever you are going (ie for a relative /rent). You will be turned down for your mortgage if the provider realises you plan to change jobs, and potentially not have one for a while.

How much are the houses you are looking at? Does your partner work?

HeyCat · 27/05/2017 20:29

I don't think banks usually ask for references, they can see your salary from your bank statements.

They are likely to ask about affordability once you relocate as it will be obvious you'll need a new job.

Original poster

Mindfullness · 27/05/2017 20:32

Thanks for thr replies. The houses are about 350-375k. My partner isn't working now as he has a long term disability which is one of the reasons for moving.

OP posts:

Eminybob · 27/05/2017 21:22

I will be leaving my current job and will look for another when I move

I'm sorry but you really shouldn't be applying for a mortgage on your current income then. The lender will ask questions if your employer is several miles from the new house.
I appreciate this isn't what you want to hear, but you need to be honest if you are applying for a mortgage.

TreeTop7 · 27/05/2017 21:51

My mortgqge lender just wanted P60s and SA302s (the self-assessment calcs). They didn't contact my employer. I don't suppose they'll delve too deeply on someone with a £300k deposit for a £350/70k house anyway.

SayNoToCarrots · 27/05/2017 22:12

Is there any way you could get a sub-300k house and avoid the whole issue.

starving · 27/05/2017 23:22

We did this and succeeded. I relocated due to job, dh was still living in old location as we hadn't sold house (and he hadn't found new job). When house sold we found a new house in new location and applied for mortgage. When all was progressing dh handed in his notice. He moved without a job, but when we were doing our mortgage calculations we worked out how much we could afford based on just my earnings. The mortgage company did contact dh's employer for a reference (he was friends with colleague in hr) but it did not say anything about where the new house was, they just wanted confirmation of his earnings. Said friend did not know of plan to relocate.

Original poster

Mindfullness · 28/05/2017 09:21

Thank you very much for the replies, it does seem doable after all. I would temp straight away whilst looking for a new job so would be able to afford the repayments. We have had a really tough few years and just need a bit of luck and help.

OP posts:

jelliebelly · 28/05/2017 09:30

They are v unlikely to contact your employer but they are likely to ask about your plans when calculating affordability - it wouldn't be wise to lie to them...

Temporaryanonymity · 28/05/2017 09:34

I work in HR. We still get requests from mortgage companies but they only ask for salary details. They never say what house is being purchased though.

backaftera2yearbreak · 28/05/2017 09:35

They contacted my partners employer when he applied 2 years ago.

NoSquirrels · 28/05/2017 09:36

When we were doing this I waited to hand in my notice until we had completed. Couldn't risk it going wrong at that stage, and however unlikely the prospect, the bank is entitled to make any final checks advised by its underwriter up to completion before releasing the funds.

It meant having to stay longer to work notice period and having an expensive time in rented for a bit, but ultimately decided that was better than risking everything.

bobbybaby2017 · 28/05/2017 09:39

Sounds like you're only taking a small mortgage if you have a £300k deposit. If you're partner doesn't work due to disability do they get benefits of any sort that would cover the mortgage repayments. If so you could feel a little more at ease if it was based on that not a salary you will shortly lose.

Original poster

Mindfullness · 28/05/2017 09:48

Thanks again for your replies. Yes he does get ESA and PIP so they should take that into consideration.
I have had a sleepless night over this :(

OP posts:

Original poster

Mindfullness · 28/05/2017 15:08

OP posts:

RainbowsAndUnicorn · 29/05/2017 13:03

Ours contacted both employers to check salary, length of service etc. Lenders are tightening up.

Lying to a mortgage company be declaring an income and employer you won't actually have is a very risky move.

MontyPythonsFlyingFuck · 29/05/2017 13:08

Someone I know who gets ESA (and is single) was offered a mortgage on that basis of up to £62k by Natwest. Could be worth investigating?

Original poster

Mindfullness · 30/05/2017 20:32

Thanks for your helpful advice. Good to hear of someone positively getting a mortgage with ESA.

OP posts:

peterpancollar · 04/06/2017 11:02

The mortgage provider may contact your employer to confirm your earnings but this isn't normally necessary unless you've only started a new job recently. If you're been working in the same job for a while, they only need to see evidence of your salary slips for the last 3-6 mths. There is no disclosure of the property's details. Don't give notice of your current job until after completion - this is definite mortgage fraud. Why can't you look and secure a job in the new area first before making arrangements to move?

peterpancollar · 04/06/2017 11:12

If you leave your job without another to go to, you won't get a mortgage because you're unemployed without a source of reliable income. A temping job won't get you a mortgage! I wouldn't advocate lying because being declined for a mortgage application affects your credit record. That in turn, makes it harder for you to get any financial product in the future from insurance, loans, credit cards, etc - in fact, anything which requires a credit check.

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