Made redundant when buying house

[crazycatgal]

My DP was made redundant yesterday, out of the blue. We are buying a new build property and have already exchanged contracts, we are due to complete in a couple of months.

I can't borrow this amount of money on my own but I can afford the mortgage and bills even though it will be tight. What do we do? I'm full of worry at the moment.

Has the mortgage been approved? When are you due to complete?

Push ahead with the sale if you can cover all bills and mortgage. You dh will find another job and you would still have bills and reslnt to pay if you weren't buying a house.

The mortgage has been approved, we have exchanged. Our mortgage expires 18th April and the builder has now pushed completion into April.

Presumably your mortgage is approved if you have exchanged. Just carry on, he will presumably find another job.

Echoing what others have said. He will get a new job.

I know he will get a new job, I'm worried because it looks like we will have to extend the mortgage because our completion date has been put back.

If the mortgage offer expires, you will have to re-apply. That happened to me when I bought a new build last year - we exchanged in June and didnt complete until December - my mortgage offer expired at the end of October. Just be prepared for that. Hopefully he can get another job in the interim and fingers crossed for an early completion! It is a complete worry. Good luck! X

That's something you'll have to speak to the developer about. If you explain they may chivvy things along.

We've been told that our lender allows extensions so we wouldn't have to reapply, but I don't know whether they need to contact employers again for an extension.

I'd ring and ask them what the process is (without mentioning the redundancy). Hopefully they will be able to put your mind at rest

We had to have our mortgage extended last year as our house took longer than expected to build and they extended no problems with no additional checks or anything. Don't mention the redundancy, these things happen he will have another job soon - probably well before you complete.

Ring the mortgage company and ask about the process for extending because the developers have been delayed. Ask them what paperwork they might require for an extension as it is a faff to pull it together so you'd like to know what to expect?

Mortgage companies are inherently lazy and never bother to check with employers again once they've ticked the box in the first place. I've seen similar several times, first mortgage and remortgage. Don't worry, but do prep for the extension by asking them if they need anything since it's likely to be taken.

Few questions.

Is the lender Halifax?
Does you DH work for a big corporation that would make the news based on redundancies?

@spoonblender - This is correct, it is normally just an admin exercise to extend the mortgage offer.... other than Halifax, who will do a new credit search and possibly ask for payslips

Good to know @fromdownwest!

This happened to someone I know recently, they lost their job from an airline that went into administration. They were a couple of months away from completion on new build, they got very close to completion when the mortgage company called to say they'd noticed who they worked for and asked what was happening. Luckily they had a new job, provided new contract and a new mortgage was offered but did delay them a few weeks.

I would just keep quiet for now, tell the sales office as my friends sales office were really helpful, and just hope your husband has a new job just incasse anything is picked up.

No, luckily it's not Halifax, I've asked our mortgage advisor about the process and he doesn't need anything for an extension of a few weeks.

DP didn't work for a big corporation that would make the news, he worked in the head office of a smaller business that isn't well known. The managing director wanted to save money so being an arsehole got rid of everyone who had been there less than six months (DP had passed his 3 month probation and had been given a salary increase only a month ago.)

DP has 3 interviews lined up this week anyway, he's been very proactive since last week

It's such a difficult position to be put in but I thinks it's only right to point out that by not informing your mortgage provider you are possibly committing mortgage fraud. This would be classed as a material change in circumstances and I think if you read your mortgage offer it will cover this scenario. Your partner should try to secure a new job but I would think carefully about your next move. Good luck OP.

Thank you, but it is either don't tell them or have nowhere to live. I can't continue to live with family anymore and I am not going to lose out due to no fault of our own.

We had a mortgage extension of 2 months without any extra checks. Just don't mention it.

That's fine OP, you have to do what is best for you, as long as you are aware of the penalties should they find out. Failure to disclose is fraud. Lenders share their data by means of an organisation called NationalHunter, if your details end up on there then you'll find it almost impossible to get a mortgage.

Unless it was for a big well known company making lots of layoffs, I’d just keep quiet. They are unlikely to check it over. It’s like when you “forget” minor facts for car insurance, they never bother checking

Reapplication would be necessary if you don’t complete during the extension

DP has got a new job!

Thank you to everyone who commented with advice and support x