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Original poster

Panicking

61 replies

Applepiee · 11/08/2021 10:02

I was told yesterday that I'm being made redundant. My employment ends on the 27th.
This couldn't have come at a worse time. We've already exchanged contracts, due to complete on the 3rd of September. What do I do? Tell them or keep quiet? I think they will withdraw the offer if I notify them as technically I will be unemployed. I stand to lose my entire deposit if I tell them. I have savings of around 5k which I can use to pay the mortgage/bills for now. I'm confident I will be able to find another job too, just maybe not by the 3rd. I've been up all night worrying reading online about these situations. How likely is it that the lender will find out? As far as I'm aware employment references have already been made before I received the offer. I'm due to receive my final pay on the 31st. Can the lender find out from looking at HMRC records? I assume my employer will have to notify HMRC that I'm leaving when he pays me next. So scared of what will happen next.

OP posts:
bluebell34567 · 11/08/2021 11:24

on the internet you usually see the problems, people dont write when everything goes well. so, try not to worry, and dont think about it

it seems there is nothing you can do atm other than look for a job.

TokyoSushi · 11/08/2021 11:24

Oh that's so stressful, I'd stay quiet and see how it works out.

bluebell34567 · 11/08/2021 11:25

money saving expert website may have some threads about it?

helpfulperson · 11/08/2021 11:27

Are you in the UK? I'm not sure why you would lose your deposit if you pull out. Your deposit just forms part of the money you pay to the seller and if you pull out you don't pay anything. You will lose some money on fees survey etc but ten thousand pounds worth.

twinningatlife · 11/08/2021 11:28

@helpfulperson

Are you in the UK? I'm not sure why you would lose your deposit if you pull out. Your deposit just forms part of the money you pay to the seller and if you pull out you don't pay anything. You will lose some money on fees survey etc but ten thousand pounds worth.

It's my understanding if you have exchanged if you then pull out you forfeit the deposit

Original poster
Applepiee · 11/08/2021 11:29

Thanks @bluebell34567 I'll try not to worry. I'll just have to put it to the back of my mind for the time being. Really shitty situation though Sad. I've already looked on money expert forum and that is where I saw the thread about HMRC.

OP posts:
Original poster
Applepiee · 11/08/2021 11:30

@twinningatlife yes you're right

OP posts:
ablutiions · 11/08/2021 11:30

Hey, re HMRC I repeat that they are now allowed to share any of your data to a commercial organisation express permission.

If you have previously signed some sort of consent, then they might use that but if you haven't, HMRC will not be allowed to share any info. And anyway HMRC is likely to take ages to records with P45 etc - they really are not that fast or efficient!

twinningatlife · 11/08/2021 11:30

@helpfulperson

Once you have exchanged contracts if you pull out you are in breach of contract and this attracts financial penalties ie the seller keeps the deposit paid they can also resell the property and claim damages

ablutiions · 11/08/2021 11:31

NOT allowed to share. Bloody autocorrect

helpfulperson · 11/08/2021 11:33

Sorry, my mistake. I forgot we have different rules in Scotland.

Original poster
Applepiee · 11/08/2021 11:33

@ablutiions thank you, you've reassured me massively. There is something in the mortgage offer which saids about credit reference agencies, but a quick Google search has shown that this only shows my credit score, not employment status etc. I hope any way.

OP posts:
dreamersdown · 11/08/2021 11:35

Say absolutely nothing and get job hunting. It doesn’t ask for notification of your employment contract. It asks for material changes of financial status. As long as you can afford your next few mortgage payments and are confident in getting a job that can cover them beyond that, you have not got a material change. Just crack on.

Meloncurse · 11/08/2021 11:39

Have you actually received notice in writing?

FFSFFSFFS · 11/08/2021 11:43

They will have already done all the underwriting if the offer has already been issued. I would stay very quiet.

FFSFFSFFS · 11/08/2021 11:43

Also it doesn't sound like you have actually been made redundant yet so still theoretical - it hasn't happened yet!

Houserenoqueen · 11/08/2021 11:48

I would say nothing. You have the mortgage offer and have exchanged so will lose a substantial amount of cash. Can you afford the mortgage if you don’t get a job quickly? That would be the only reason to pull out in my eyes.

Original poster
Applepiee · 11/08/2021 11:51

What final checks do lenders normally do before completion? Does anyone know? I thought it would just be a second credit check but I might be wrong.

Yes, I'm going to keep quiet. I know it's not exactly the right thing do and it might even be considered as mortgage fraud, but what other options do I have at this point Sad

I've not received notice in writing yet.

OP posts:
Onandoff · 11/08/2021 11:51

Just keep quiet. The credit check before completion is to check for bankruptcy. You’re still employed. Just get job hunting which you’re doing and you sound like you have good prospects.

jiskoot · 11/08/2021 11:59

I used to work for a high street lender and we did absolutely no checks between the offer being issued and completion. The paperwork would literally sit in a drawer just waiting for the solicitor to request funds, unless some amendments were wanted or the solicitor had queries with searches etc. If you're happy that you can make the payments I really wouldn't say anything. This was going back 10 years but still...

Original poster
Applepiee · 11/08/2021 12:05

Thanks all. I'll just have to keep quiet and hope for the best.

OP posts:
NinaBallerinaShoes · 11/08/2021 12:25

Keep quiet. You haven’t been made redundant- you have just been told. There is a legal process that leads up to redundancy- including being moved to another job within the same company. You cannot tell anyone that you are redundant as it hadn’t happened - if it happens at all.

HidingFromDD · 11/08/2021 14:08

Any chance of bringing completion forward a week?

Seasonschange · 11/08/2021 14:14

It’s unusual for the gap between exchange and completion to be so long - I guess things like this is why. :(

I think at this point your mortgage lenders have already agreed the money so they shouldn’t be able to pull out. It would only be if you’d lied before exchange. I know I had to agree to tell them of change of circumstances but I’m sure it was before exchange not completion. Double check you might reassure yourself!

WhatAWasteOfOranges · 11/08/2021 14:38

It’s very likely to all be ok just stay quiet and hope for the best. Don’t tell your solicitor or estate agent - they will be legally obliged to notify your lender. If you have already received your offer it is likely that all check on you have been done and to their mind the next step is releasing the funds on completion day. Your lender will not be able to get information from HMRC without your consent - GDPR is taken very seriously.

If your deposit is 10k the amount your borrowing is likely to be on the lower end of what they lend. This should go in your favour as the risk on say a 50k loan is much less than a 500k loan and lenders tend to focus their resources on the higher risk lending.

Hope you manage to get a new job very soon.