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I had my mortgage approved but then learnt I will be made redundant: Do I have to tell the bank


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https://www.thisismoney.co.uk/money/mortgageshome/article-8564345/Do-tell-mortgage-lender-Ive-redundant.html

I am in the middle of buying a home and have had my mortgage application approved. However, I have just been told my company is making me redundant because of the coronavirus hurting their finances. 

Do I need to tell my mortgage lender as I am pretty confident I'll be able to get another job quickly so it shouldn't affect my ability to keep up with repayments? 

If I don't tell them, will they find out anyway? th?id=OIP.7fpunvr0tV1WGldXNm0uigHaCo&pid

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https://www.thisismoney.co.uk/money/mortgageshome/article-8564345/Do-tell-mortgage-lender-Ive-redundant.html

I am in the middle of buying a home and have had my mortgage application approved. However, I have just been told my company is making me redundant because of the coronavirus hurting their finances. 

Do I need to tell my mortgage lender as I am pretty confident I'll be able to get another job quickly so it shouldn't affect my ability to keep up with repayments? 

If I don't tell them, will they find out anyway? th?id=OIP.7fpunvr0tV1WGldXNm0uigHaCo&pid

All of that speil and they didn't mention anything about the legality of it.

I mean it's bound to be fraud as it'll no doubt be somewhere in the fine print.

Surely the first thing a responsible journalist would say is: "don't do it, it's illegal"?..

Edited by spacedin
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8 minutes ago, spacedin said:

All of that speil and they didn't mention anything about the legality of it.

I mean it's bound to be fraud as it'll no doubt be somewhere in the fine print.

I mean surely the first thing a responsible journalist would say is: "don't do it, it's illegal"?..

Err, but house prices?

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All of that speil and they didn't mention anything about the legality of it.

I mean it's bound to be fraud as it'll no doubt be somewhere in the fine print.

I mean surely the first thing a responsible journalist would say is: "don't do it, it's illegal"?..

https://www.pressgazette.co.uk/media-experts-dub-british-journalists-useful-idiots-who-are-being-played-on-brexit/

Media experts dub British journalists 'useful idiots' who are 'being played' on Brexit

 

British journalists are being “played like an instrument” when they publish stories based on Government leaks and anonymous sources, a prominent media academic has claimed. 

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You don't need to tell them but HOW THE #### ARE YOU GOING TO PAY THE ####ING MORTGAGE

i despair 

Err, it pays itself thru hpi.

MORON.

property init

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Haterz or not; from memory I believe that if you have used a current employment status to obtain funds from a lender, you are bound to inform the said lender if such aforementioned status changes...me Lud.

That doesn't sound very fair to hard working house buyers mad gains equity BTL winners.

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https://www.thisismoney.co.uk/money/mortgageshome/article-8564345/Do-tell-mortgage-lender-Ive-redundant.html

I am in the middle of buying a home and have had my mortgage application approved. However, I have just been told my company is making me redundant because of the coronavirus hurting their finances. 

Do I need to tell my mortgage lender as I am pretty confident I'll be able to get another job quickly so it shouldn't affect my ability to keep up with repayments? 

If I don't tell them, will they find out anyway? th?id=OIP.7fpunvr0tV1WGldXNm0uigHaCo&pid

Tricky one. Depends on two things, does the mortgage have the ability to be IO within your control (like an offset tracker mortgage), and do you have a partner earning. 

I actually did exactly this in 2010-2012 when we bought our 2nd house in 2009.  I new the job situation climate in 2009 was dodgy, and also knew i hade income protection insurance covering 75% of my take home on a cheap rate as i took out the policy in 2004. So i took a First direst lifetime discount offset tracker mortgage, which was an IO product where you set your own repayments. The wife was also earning ok too, but couldnt go on the mortgage due to recent debt default problems and a crap credit rating. 

I got put on notice of redundency about 1 month before we were due to exchange (was a new build and we were STR). I kept stum and we took the mortgage anyway and bought the house in the March.  During exchange in Feb I got made redundant, but as i was sales my contract had a 3 month notice period clause. So during completion and the 1st few months at the house i was on full pay. When i was officaly let go in May , after completing mid March, i started claiming on the 75% income protection insurance, which, funnily enough, lasted the whole years cover, i just couldnt (didnt try) get another job. 

So from June 2009 to May 2010 i stayed at home, run kid one to school and back and did lots and lots of DIY, painted the whole house, built cupboards etc etc.  All that time from March 2009 to May 2010 we paid the mortgage as normal and as they advised interest and capital as if it were a repayment mortgage. Finacially we were no worse of as we lost 100% of our pre and post school childcare bill , as i was available, and this easily matched my missing 25% take home difference.

In June 2010 when the insurance ended i put the capital repayments down to £1 , and the IO portion was £230 pcm. This was my reasoning all along, if we are in for tough time with the economy, better to be in a house we owned and we could "rent" it for a period to ourselves for only £230pcm. 

I then went self employed mucking about until 2012 when i got a full time job again, then we just overpaid the capital payments to make up the capital we hadn't paid for 2 years.  

The bank never knew any of this and didnt care, as long as the interest portion was paid every month they were good.

Now had i been forced onto an repayment due to MMR rules , which we were with our current house, then no, i would have stayed in rented with out STR cash pile. But times were different back in 2009.

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Tricky one. Depends on two things, does the mortgage have the ability to be IO within your control (like an offset tracker mortgage), and do you have a partner earning. 

I actually did exactly this in 2010-2012 when we bought our 2nd house in 2009.  I new the job situation climate in 2009 was dodgy, and also knew i hade income protection insurance covering 75% of my take home on a cheap rate as i took out the policy in 2004. So i took a First direst lifetime discount offset tracker mortgage, which was an IO product where you set your own repayments. The wife was also earning ok too, but couldnt go on the mortgage due to recent debt default problems and a crap credit rating. 

I got put on notice of redundency about 1 month before we were due to exchange (was a new build and we were STR). I kept stum and we took the mortgage anyway and bought the house in the March.  During exchange in Feb I got made redundant, but as i was sales my contract had a 3 month notice period clause. So during completion and the 1st few months at the house i was on full pay. When i was officaly let go in May , after completing mid March, i started claiming on the 75% income protection insurance, which, funnily enough, lasted the whole years cover, i just couldnt (didnt try) get another job. 

So from June 2009 to May 2010 i stayed at home, run kid one to school and back and did lots and lots of DIY, painted the whole house, built cupboards etc etc.  All that time from March 2009 to May 2010 we paid the mortgage as normal and as they advised interest and capital as if it were a repayment mortgage. Finacially we were no worse of as we lost 100% of our pre and post school childcare bill , as i was available, and this easily matched my missing 25% take home difference.

In June 2010 when the insurance ended i put the capital repayments down to £1 , and the IO portion was £230 pcm. This was my reasoning all along, if we are in for tough time with the economy, better to be in a house we owned and we could "rent" it for a period to ourselves for only £230pcm. 

I then went self employed mucking about until 2012 when i got a full time job again, then we just overpaid the capital payments to make up the capital we hadn't paid for 2 years.  

The bank never knew any of this and didnt care, as long as the interest portion was paid every month they were good.

Now had i been forced onto an repayment due to MMR rules , which we were with our current house, then no, i would have stayed in rented with out STR cash pile. But times were different back in 2009.

What?

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What?

Urrrmmm. It's a true story of how in 2009 i bought a new bigger house, took on a £130k mortgage, knowing i was being made redundant before exchange and was made redundant after completion. Totally connected to the lead post and was the right thing to do at the time, all worked out fine, but everyone's circumstances are different. 

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Urrrmmm. It's a true story of how in 2009 i bought a new bigger house, took on a £130k mortgage, knowing i was being made redundant before exchange and was made redundant after completion. Totally connected to the lead post and was the right thing to do at the time, all worked out fine, but everyone's circumstances are different. 

Sorry I thought it was a sort of random stream of consciousness. My bad.

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Urrrmmm. It's a true story of how in 2009 i bought a new bigger house, took on a £130k mortgage, knowing i was being made redundant before exchange and was made redundant after completion. Totally connected to the lead post and was the right thing to do at the time, all worked out fine, but everyone's circumstances are different. 

How much is your house worth now?

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  • 433 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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