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Would you risk it?

13 replies

Blackcurrantsandcherries · 15/09/2021 14:00

I’ll try and make this short and sweet. I’m buying a property on my own, put the offer in 8 weeks ago which was accepted. All searches and the report have come back really quickly, but my solicitor has an enquiry which might take a couple of weeks to resolve. My mortgage offer is all set. We were confident I would be in by the end of this month but I doubt that will happen now. She is going to ring me tomorrow with an update so I’ll have an idea then of how long it will take to sort this out. The property is vacant and there’s no chain so we can do a same day exchange/completion which should speed up the process. At the time that I applied for the mortgage I was in a full time job, temporary but an ongoing contract. The mortgage lender was happy with this as I was able to provide payslips and I’d already been there for 11 months. Unfortunately, nearly two weeks ago I was informed by my manager that they would not be extending my contract and I’ll be finishing with them on Friday. I’m gutted and I really don’t know what to do. I have asked for an extension just to get me through the house move but it’s not possible.

I have enough savings which will cover the bills for around 3 months and I already have a few interviews lined up over the next few weeks as well. The reason I haven’t passed on this information to my solicitor is because I thought we would have completed in the next two weeks, therefor there would only be a 1 week gap between me leaving my job and getting the keys. Unfortunately because of this delay that might not be the case now, but we might still be able to complete within the next 3-4 weeks. If I get a job before completion my lender will still not accept anyone who hasn’t been in their job for 3 months or more, so I would have to start all over again and there is a possibility that I’d still not be accepted by another lender anyway. Properties within my budget don’t come up very often (in this area or further afield, I actually waited a year for this one to come up) so it’s not a case of just being able to buy the next best thing. I was thinking of waiting until the end of the month and if there is still no movement then I will pull out.

If they find out, the obvious consequences will be that I’m black listed for trying to commit mortgage fraud and I will lose my entire deposit (can someone clarify, what happens if it’s a same day exchange/complete, will I still lose my deposit?). I will still have to pay over 1k in solicitors fees. Just to clarify, I’m not asking for advice or tips on how to do this, but given my circumstances, would you wait it out and see what happens? Now that I’ve had my mortgage offer, what are the chances that the lender will find out? The timing is typical.

OP posts:
winniedaisy · 15/09/2021 14:09

People lose their jobs all the time. Even with a mortgage in place.
Are you confident you could get a job fairly soon? As in its not a super niche role? Would you get the same or similar salary?
You have enough in savings to get you by for now but do you have any family or anything that could help you out financially in case a job doesn't come along right away?

Personally I don't think I would risk losing the house if I was confident I could get another job and had enough in savings. Are house fees all paid etc?

Blackcurrantsandcherries · 15/09/2021 14:31

Thanks for your reply @winniedaisy

I'm a 100% confident that I will find another job, and even if it takes a couple of months I have my savings in place to keep me going. There is lots of agency work around here too that I can take on until I find a permanent role. I know the mortgage lender wouldn't be happy though. In terms of salary, it's hard to say because at the moment I don't know what job I'm going to end up with. I was only earning just above minimum wage in my previous job. I rent at the moment so I need to find a new job either way.

What do you mean by house fees? I have paid for searches but I've not received the final bill from the solicitor yet.

I'm concerned that the lender might find out the longer it drags on. My offer is valid until mid November. Do they usually do any more checks after the offer? I know there is the bankruptcy check but what about employment checks etc?

OP posts:
blacklilypad · 15/09/2021 14:38

Realistically they won't check. Once the offer is made they don't do further checks without reason. So to be found out someone would have to report you or you accidentally let it slip to someone who is obligated to pass it on, ie solicitor, EA, etc.

I don't know what I would do in your situation. I'm a very toe the line kind of person so I would probably tell them as mortgage fraud is a criminal offence. I would probably make myself ill with the worry and all the worse case scenarios that my mind could dream up.

Blackcurrantsandcherries · 15/09/2021 14:48

This is how I feel @blacklilypad. I'm worried but keep telling myself they won't find out. I know their a lot more stricter now due to covid etc and probably do more checks than usual. I'm worried that they might ask for an up to date payslip and I won't have one...

OP posts:
BlackberryMuncher · 15/09/2021 14:51

There was a thread a wee while ago, almost exactly the same, there were good posts for & against. Unfortunately I lost track of the thread, but if I can find it, I'll post a link.

I still don't know what I'd do! It's SO hard, but I 'think' I'd tell the bank, because being blacklisted to get a mortgage in the future scares me more than missing out on the property (and I do understand not having options re buying, I bought my place, because it was my only option. I bought at auction and I was in the auction room with bidding for this lot just about to start when my mortgage approval came through. (It was in 2009, the original lenders pulled all mortgages that morning & I had to arrange a new one, I had to find extra money for the deposit & the interest rate was much higher (2.5% to 6.5%). It was a bloody nightmare, I didn't intend to still be here 12 years on, but I still don't regret it!

I hope you can work something out! I wonder if a guarantor would help if you have someone who would be prepared to do that for you?!

LCDP · 15/09/2021 14:52

I would consult with a mortgage broker, they may know of a lender that is more open minded.

BlackberryMuncher · 15/09/2021 14:59

www.mumsnet.com/Talk/property/4313386-difficult-situation-with-mortgage-advice

It was a slightly different situation.

I haven't really-read it, but I hope some of the replies help you decide what to do.

BeepBoopBop · 15/09/2021 15:46

If I were confident I could manage for a couple of months, I would not say anything. I would tell the solicitor I had given notice on my rental & to sort the issue ASAP.

BeepBoopBop · 15/09/2021 15:47

Oh and do tell her you want to exchange & complete on the same day as she'll need to draw the funds in time.

Blackcurrantsandcherries · 15/09/2021 15:57

Thanks @BlackberryMuncher I will take a look at the other thread and see if there are any helpful answers. It's such a mess.

@BeepBoopBop definitely! In all fairness my solicitor is working very fast. It's the sellers solicitor who is slowing everything down and taking ages to respond to queries. My solicitor contacted them last week and we've still not heard anything, really frustrating. I spoke with the secretary this morning who said my solicitor is in court today but she'll get her to chase the other side up tomorrow, so hopefully I will have an answer by the end of the week.

I just hope it doesn't drag on for weeks as I might need to think about pulling out if so. I think 3-4 weeks is pushing it anyway so can't risk waiting any longer. Absolutely gutted that this issue has cropped up.

I'm more concerned about the lender doing more checks.

OP posts:
Blackcurrantsandcherries · 15/09/2021 15:57

@BeepBoopBop solicitor was also the one who suggested same day exchange/completion

OP posts:
EdgeOfTheSky · 15/09/2021 16:10

Get the EA to pursue the vendors solicitor.

Tell the EA that you are concerned to get the sale through before restructuring happens at your job because although you have other jobs to go to they won’t be acceptable security to the lender.

So can they get the vendors solicitor to act fast, please…

Solicitors are under pressure as the last of the SDLT holiday sales go through. But that doesn’t mean your enquiries should be ignored.

It is part of the EA job to report the sale progress on track.

Calmdown14 · 15/09/2021 19:04

What @EdgeOfTheSky says.
You absolutely cannot tell your solicitor as they will have to disclose it but potential restructuring sounds reasonable and forewarns the seller you pulling out could be possible. And emphasises to your solicitor the time pressure.
Get it chased to complete as quickly as possible. Some pressure will help.
How big is the outstanding issue? Could an indemnity cover it so it can just be sorted either way?
If you were in a high earning job, I'd say pull out but if you can just about pay the bills on any job then it seems a real shame to lose out

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