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Original poster

Anyone else relocated without a job to go to - did your mortgage still get approved?

19 replies

IHeartKingThistle · 12/05/2010 20:32

I just wondered if anyone had any experience of this. We have had an offer accepted on a house and will be relocating. So I will need to move jobs OR take a career break. We're currently waiting for final approval from the lender (we've gone through a mortgage advisor so far who is confident it will be approved).

The double-headed problem is this: a) I'm a teacher and if I'm going to hand my notice in I have to do it by 31st May, and b) the mortgage application has been put in using our joint salary, so will be dependent in part on my income. If I hand my notice in and don't get a job will they refuse the mortgage? I'm only part-time but my dh's salary alone wouldn't get us the mortgage we need. I've sent letters off to all the schools in the area to see if they have any part-time work (no-one advertising, obviously!)but we are relocating to get a better lifestyle and I really don't want to have to get a job miles away or worse, commute back to my existing job.

I was quite relaxed about it before as if I get a job we'll be paying two lots of nursery fees and if I don't dd can go to pre-school and ds can stay with me a while longer (still a baby) so financially it would make bugger all difference. But now it seems to be turning into a bit of a mess. Surely mortgage lenders deal with relocation problems all the time? Don't loads of people move with only one of the jobs sorted? Would they look at affordability instead, if they can see we'd be saving on nursery fees?

Sorry for all the questions but I'm starting to see this all falling apart and I so want to move!

OP posts:

mintyfresh · 12/05/2010 20:53

We've had mortgage concerns recently as so many of them are really tight with their lending criteria now. It will depend on who your mortgage is with - some are more flexible than others. HSBC seem to be a nightmare unless you are more than 100% safe but others will look more at affordability. Having dependents can also be a problem if borrowing on just one salary.

I would take advice from your broker about how to handle the situation - I'm sure he/she will have dealt with this before.

Good luck - is very stressful isn't it!

Original poster

IHeartKingThistle · 12/05/2010 21:37

Thanks - yes I know! Damn this recession!

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gingerkirsty · 12/05/2010 22:03

When you say you are relocating, is it still commutable distance from your work? If not, the lender will surely question using your income to support the loan?

If commutable, they wouldn't need to know you had given notice unless they went for a reference - your broker would know if this is likely, or if the lender will be happy to accept payslips and P60.

There is normally a question on the mortgage application form about are you under notice etc but it sounds like you have already handed this in? Technically i believe you should still tell them as it is material to the application but unless they go for a reference how are they going to know IYSWIM?

Best of luck

LadyBiscuit · 12/05/2010 22:07

I am going to move my mortgage from my existing place to a new house where I won't have a job. I am just not telling the lenders that's what I'm doing. Once you've been approved and it's all gone through, then you can do whatever you like - it's just up to you to make sure you can still pay the mortgage obviously!

They don't look at your other costs like childcare - only loans and other financial commitments like that.

Can you get the mortgage all tied up before you hand in your notice? That would be the best way

Original poster

IHeartKingThistle · 12/05/2010 22:24

Fair point, yes technically it is commutable (about 50 min drive) although there's no way I'd want to take that on. But they don't need to know that and we have given in payslips and P60s already. I do agree, I absolutely hate not being completely truthful - it may not even be a problem though, I could find a job next week and then really regret upsetting the apple cart!

Thanks for the words of wisdom. They're needed - it's turning my head fuzzy! I think the timing of this stuff has got to be so perfect and I can't control any of it!

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Original poster

IHeartKingThistle · 12/05/2010 22:28

Ladybiscuit, that's good to know. Once it's tied up I will resign like a shot, but I only have 20 days until the resignation deadline! If I miss that I'm tied into my contract until at least Christmas. I suppose I could commute for that term but I'd just love to start everything off fresh, you know?

Any idea how long it might take to process the application? Is 20 days long enough?

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gingerkirsty · 12/05/2010 22:36

I guess there's no chance of you completing before 31st May to avoid having to fib?! TBH I applaud your natural honesty but I think given your situation you could be making a rod for your own back if you tell them. The reason they want to know this stuff is to make sure you can afford the mortgage - if you know you can make the repayments without your income, then fine!

The other question that springs to mind is, are both your incomes definitely needed? I know they have both been put on the app but if you are not sure, again worth checking with your broker.

I used to be a mortgage broker myself hence my interest.

I am sure it will all pan out for you.

Original poster

IHeartKingThistle · 12/05/2010 22:48

Sadly no chance of an early completion; our vendors haven't found anywhere yet.

I will speak to the broker again to see what he thinks about it.

Thanks so much - what you're saying makes perfect sense. I feel a lot better now!

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LadyBiscuit · 13/05/2010 08:43

I think I did mine in about 25 days but as long as they've got all the info about your income and it's been approved, you should be able to resign on the 31st as someone else said - they won't go back to your employers again and won't ask you if you've quit your job so you won't actually have to fib. If everything that is likely to cause an issue is sorted by then (ie they have done their survey and search, you have been approved etc) then it should all just go ahead. I would hassle them to speed things up on the grounds you may lose the house. I know some people have exchanged within about 3-4 weeks

Original poster

IHeartKingThistle · 13/05/2010 09:59

OK, I have hope then! Do you mean do the survey and search quickly on the property we are selling or the one we're buying? Sorry I am such an idiot!

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strawberrycornetto · 13/05/2010 10:06

I am doing something similar. We have applied for new mortgage on joint incomes although the new home is a 1 1/2 hour commute for me. I am probably going to work out my notice once I move. No questions were asked about my role by our lender.

If I were you, I wouldn't resign until you have exchanged on the house though as if the sale falls through, you will be in your existing house for longer than you planned, potentially without your income, and you will not be able to rely on your income for subsequent mortgage applications.

LadyBiscuit · 13/05/2010 11:02

On the one you're buying. If something comes up in the search like they're about to build a motorway behind your house or something then you may not get the loan (and you probably won't want to live there anyway!)

Bearing in mind what sc said, do you think you could stay on in your current job for a while in case it did fall through before exchange?

Original poster

IHeartKingThistle · 13/05/2010 11:11

Great, will try to get the survey sorted asap.

I could at a push stay in my current job, but I'd be really messing the school about; it's not exactly frowned upon to leave at Christmas but it's not really the 'done thing' either. But if the horror scenario that sc said about did happen it would be a disaster - no job, no mortgage and no way of paying our existing nursery fees. Wow that actually would be a total disaster .
So in comparison doing a hefty commute for a term actually seems quite doable. Hmmm...

OP posts:

lucykate · 13/05/2010 11:20

we did this, 4 years ago. relocating from the north west to the midlands, dh's new job was in the midlands so he was already down there staying with friends. we did our mortgage application using both incomes, they never asked about my job at all other than to see 3 wage slips. as soon as the mortgage offer was through, i handed in my notice, and we moved about a month later.

rebl · 13/05/2010 13:37

We haven't done this exactly but similar. We got our mortgage on just my dh's salary. I don't have an income. We moved and before the 2nd payment was due my dh was made redundant. The mortgage company don't have a clue, haven't seen the need to tell them, we're still paying on time. So I don't see any difference to you tbh.

emsyj · 13/05/2010 14:53

My mortgage application for our current mortgage had a declaration on it saying that I didn't plan to change jobs. We actually exchanged contracts on our current house whilst we were both living and working in London, then I handed my notice in a couple of weeks before completion (having secured another job). They wouldn't take DH's income into account at all as he is self-employed. I didn't ever tell them I'd changed jobs but beware of declarations in your application forms re: your future working plans as I know we definitely had one.

unavailable · 13/05/2010 18:20

I dont understand how you will be able to pay the mortgage on one income if the lender wont consider lending the amount you need on one income ifswim. Arent you just setting yourselves up for trouble if you do this? Interest rates are bound to go up in the medium term and if you are already stretched it could leave you vulnerable.

Original poster

IHeartKingThistle · 13/05/2010 19:22

You are right, but if we're on one income we won't be paying two sets of nursery fees (after nursery I don't bring in very much). So the difference is nowhere near what it would be.

OP posts:

lucykate · 13/05/2010 19:49

we've managed fine on one income, and still do! we have to be careful with money but who doesn't these days.

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