Mortgage approval / Job change

Logger123

Hi all.

Perhaps you've been in a similar situation or have experience in it.

Last week, myself and my wife were mortgage approved. It was pretty straightforward, both full time Permanent employment, all documentation etc, boxes ticked.

On Thursday I was offered a new job - one I really want. More money, an area of the industry I want to work in, an opportunity that doesn't come along often.

If I accept the job, what are the potential issues?
We have approval for 6 months, until October.

It is a new house, we'll move in in September.

Anyone have any idea on how I should proceed, or maybe it's just an honest conversation with the lender?

Thanks

TheIronyMaiden

We've just been through the approval process ourselves and from what I can gather the bank will not let you draw down the mortgage until you have passed 6 months in the job. You will also have to submit new salary certs etc

_brendand_

TheIronyMaiden wrote: »

We've just been through the approval process ourselves and from what I can gather the bank will not let you draw down the mortgage until you have passed 6 months in the job. You will also have to submit new salary certs etc

It doesn't have to be six months - you just have to be confirmed in your employment and not on probation. This is at the employers discretion but it is extremely unlikely to be less than 3 months. Ask them to help you out and they might.

In relation to the OPs question, no you can't change jobs now without messing up your plans to buy. You may have AIP but that is not enough, you need to be fully approved to draw down the mortgage which will require confirmed employment.

John_Mc

It's a bit of a joke anyway. You have no employment rights until the 1 year mark and can be easily let go for no reason at all within that time frame, probation or not.

limnam

John_Mc wrote: »

It's a bit of a joke anyway. You have no employment rights until the 1 year mark and can be easily let go for no reason at all within that time frame, probation or not.

While the above is true. Anyone can pretty much lose their job at any given time regardless of probation, 1 year in or 5.

But they have to draw the line somewhere and I think someone passing probation is a good place to draw it.

But yeah it's all a bit pointless really.

What Username Guidelines

_brendand_ wrote: »

No you can't change jobs now without messing up your plans to buy.

Got the impression from OP it's more than AIP as they have an idea of house/when to move.

Logger123 wrote: »

It is a new house, we'll move in in September.

If it's just approval in principle, then I wouldnt go anywhere. If you've got the house picked and are approved on that house, then you can, in theory and with a little risk, move jobs.

Logger123 wrote: »

maybe it's just an honest conversation with the lender?

That's what I did with lender. They told me there were a few factors at play. Salary cant be lower obviously but if there's a pay bump it'll help. Industry is a factor, I'm in IT and my particular role is/was in demand, so no issue finding another job if it didnt work out. Also wasnt borrowing to the maximum allowed so there was some wiggle room. And lastly, I was being head hunted by other company so that would have gone in my favour.

In the end, mortgage was drawn 3 days before 6 month limit, so no resubmission of documents.

Few other things I considered at the time:
If the house falls through (less likely I guess as new build), even if you find another immediately, the bank may need to run through docs again, but will likely just need new info/valuation pertaining to new property. Considering it's last 3 or 6 payslips they ask for, and you'll likely get one the day you leave, that gives you another month beyond that where it's still your most recent payslip - but salary cert may be the issue. Also, the company I was moving to were happy to check the "permanent" check box on the form even during probation, but I'd guess some companies wouldn't want to do this as it is in theory removing you from probation in writing and stamped.

Most importantly, congrats on the new job & house