Hi all, I'm hoping someone can offer some advice on how I should proceed with this situation. I've not spoken with my mortgage broker yet and I'm not really sure if I want to as I know legally they will have to change all my details on the mortgage application which could either slow down the process or put a stop to it all together.
I applied for a mortgage at the beginning of last month which was approved. Went through all the necessary checks and sent off the paperwork - payslips, bank statements etc.
At the time I was in a permanent role where I'd worked for the last 3 years. When I applied for the mortgage I thought I was going to be in the job long term but my situation has suddenly changed. My employment ends at the end of this week and I won't have a job. I will be paid at the beginning of next week and receive my final payslip shortly afterwards. Now this is the tricky bit - I won't be without money. I'm fortunate enough to have been presented with an exit/compensation package from my current employer for reasons I won't go into. It is a relatively large sum but won't be paid in one go due to tax reasons. I will be paid my full salary every month for the next 8 months, but it won't be through the books.
The monthly payments will be paid into my bank account but I won't receive a payslip as usual. I understand that even though I will have this income coming in every month, I am technically unemployed. I don't plan to be off work forever as I already have another job offer in place but it doesn't start until Mid September (even if this job doesn't work out there are plenty around in my area and field). How do I proceed with the mortgage application now? I'm very wary of coming clean with my advisor as I know it could ruin everything.
I am hoping to be in the property by the end of September but the searches are still taking place (longer here than usual due to covid). Solicitor has reassured me I'll be in by then as there is no onward chain and the property is vacant. My mortgage offer is valid for 90 days so I still have plenty of time. How likely is it that the lenders will ask for more payslips? My last one will be in August so I'm slightly worrying that they might ask for one in September and I won't be able to provide it. I know they usually only ask for payslips at the beginning of the process but after Googling it I've read that some lenders do ask for more paperwork right before completion. I've spoken with my current employer and told her they might contact her for a reference. She said she will word it in a way that works in my favour (not great I know but she's just trying to help out as she knows it's a tricky situation for me).
How do I proceed? Should I just take the risk and hope that they don't ask for any more paperwork? I reckon that I'm still at least two months away from completion so I'd be devastated to wait all that time (along with wasting everyone else's time) for it to be ruined at the very last minute if they ask for more payslips. Family have just told me to take the risk as it will all probably work out any way and they won't do anymore checks now. If I back out now and come clean I'll never know if it would have worked out or not. I've rented for the last 7 years, worked really hard to save up and finally found a property that I can afford which is in a lovely area (they don't come up very often) I'd be absolutely gutted to have to let it go after all this work.
Just to clarify - the exit package is 100% legal and binding, employment solicitors dealing with it all and both parties will need to sign so the money will be guaranteed.
Advice???