Mortgage Approved and losing job

house_Hunter_ · 21-01-2019 11:37pm #1

After saving up for a year we finally got mortgage approved with an exception for a new build house. Our happiness hasn't lasted long as a couple of days later my partner found out she was loosing her job.

We are mortgage approved with exception for the next 6 months. We cant fathom just giving up at this point so are trying to figure out if we have any options. My partner is in a high demand profession so we're pretty sure she wont have a big employment gap.

Ive searched previous posts and have found cases where people switched jobs after being approved and managed to drawdown without the bank noticing. Although if the mortgage and exception offer needs to be renewed its very likely they will ask for updated statements etc.

However as we're looking at new builds we're trying to decide is it smarter to put a deposit on a house that will be finished before we have to extend the approval. Or go for a build that wont be completed towards the end of the year when my partner will be out of probation.

Any advice would be most welcome

mkdon · 22-01-2019 12:17am

speak to your bank

The Enbalmer · 22-01-2019 12:23am

mkdon wrote: »

speak to your bank

They'll make you reapply most likely..taking into account the new circumstances.
If you have the letter of offer already,sign it and get it sent off..drawdown the mortage and say nothing.
You might find it tough going til your wife is working but imo it's better than having to start the whole process again.

lawred2 · 22-01-2019 12:27am

The application will be killed of you bring it up. You'll have to start again.

If the loan offer is in place then you could keep schtum..

However you'll have to ask whether one salary can afford all the repayments with all the other costs of keeping a house

The Enbalmer · 22-01-2019 12:35am

lawred2 wrote: »

The application will be killed of you bring it up. You'll have to start again.

If the loan offer is in place then you could keep schtum..

However you'll have to ask whether one salary can afford all the repayments with all the other costs of keeping a house

You can Apply for a payment moratorium of up to six months..mention it and get the funds drawn down.

3DataModem · 22-01-2019 1:08am

Absolutely do not speak to your bank yet. You cannot un-ring that bell once rung.

They will make you reapply, however if your solicitor has your mortgage pack and it has a 6 month closure date, you have a chance of closing despite the change in circumstances.

Here are the possible scenarios

1. You close before the approval expires, your bank doesn't ask for fresh payslips or anything, and you get the keys.

2. You sign contracts but before closing the bank asks for a fresh payslip before they will close. This is a tough situation, and you have to decide if worth the risk. If you are buying a second hand house, you'll probably lose your full contract deposit to get out of the contract. If you are buying a new house, you can probably negotiate, perhaps delaying closing until after you get re-approved by your lender.

3. If you happen to have your current accounts with your mortgage provider, you are probably in worse shape as they will do a final credit check prior to closure. One of the upsides of not banking with your mortgage provider if you can avoid it (and of the reasons they give discounts if you do.)

My anecdote:
I got approval in principle from UB in Feb '18, found out I was going to be leaving job in March '18, actually left job and got final loan approval in the same week in May '18, and eventually closed the purchase in October '18 just two weeks prior to the loan pack expiring (with zero chance of extension, as I went from a safe job to a startup, and am the only earner in my household). Bit of a nail biter. In the middle of this (July '18) I had to get the pack re-issued due to a change in how the live cover was being assigned, but this did not trigger any more documentation being needed. Also my sale fell through. Twice.

I've heard anecdotally that BOI can ask for a final payslip prior to closure, but they definitely don't always do it.

As I said above, consider ALL options before declaring to your lender. The one upside of the depersonalisation of banking is the people you deal with don't know or care about you, just about the box-ticking of the process.

Ardent · 22-01-2019 1:56am

I was in your exact position. I kept my mouth shut - proceeded with the house search, found one, sale agreed, closed sale, etc etc. Got another job around the time we got the keys..

The Enbalmer · 22-01-2019 9:34am

Pretty sure that banks don't ask to see anymore payslips before drawdown as the calculations have already been done to arrive at the letter stage and its handled by a different department.
They really aren't that arsed once the letter is issued but if you declare a change in circumstances you'll be right back to the start

Henry Ford III · 22-01-2019 9:59am

Could you pay the mortgage on one income OP? If not get job hunting quickly

Cuddlesworth · 22-01-2019 10:07am

The Enbalmer wrote: »

Pretty sure that banks don't ask to see anymore payslips before drawdown as the calculations have already been done to arrive at the letter stage and its handled by a different department.
They really aren't that arsed once the letter is issued but if you declare a change in circumstances you'll be right back to the start

We were asked for updated payslips and statements from when got AIP to when we put a offer in on a house.

q85dw7osi4lebg · 22-01-2019 10:21am

Been there, done that, don't say a thing. It'll be stressful but worth it, just don't buy something off plan as that will mean you need to reapply again if your letter of offer has expired.

house_Hunter_ · 22-01-2019 10:25am

Thanks for all the input, its much appreciated in a time of need

My income is 75% of the combined income so we can manage fine with payments.

As luck would have it, my partners current account is with the bank. So it looks like there will be a high chance of the bank noticing in some manner. Hopefully they might renew the exception and approval as long as we drawdown after partners probation finishes.

She is interviewing this week. Hopefully she can get a position that will bring her out of probation by September, as well as a pay bump. We could perhaps apply to other banks in the next couple of months to try and secure an additional option. The additional risk factor is trying to secure another exception on LTI.

So it would appear the riskier strategy in our case is going for a new build that would be completed < 6 months.

Putting on a deposit for a new build that would be completed (or drag out proceedings ) closer to September might give us a better chance of success.

Agree?

lawred2 · 22-01-2019 10:29am

Cuddlesworth wrote: »

We were asked for updated payslips and statements from when got AIP to when we put a offer in on a house.

that might happen if your AIP lapsed

but if you're closing shortly after AIP then it pretty much never would

Toots · 22-01-2019 10:30am

The Enbalmer wrote: »

Pretty sure that banks don't ask to see anymore payslips before drawdown as the calculations have already been done to arrive at the letter stage and its handled by a different department.
They really aren't that arsed once the letter is issued but if you declare a change in circumstances you'll be right back to the start

My sister is drawing down her mortgage this week and her and her partner were both asked for updated payslips and bank statements before the bank would allow the mortgage to complete. They got AIP in September.

BronsonTB · 22-01-2019 10:31am

mkdon wrote: »

speak to your bank

If it's KBC I would not recommend talking to them as they will make you reapply.

house_Hunter_ · 22-01-2019 10:31am

We want to use the HTB grant for a new build if possible. Otherwise we will be struggling to get a deposit together for the houses we are looking at.

Do you think we need to reapply again or just provide some up to date statements/payslips/salary cert for partner?

michellie · 22-01-2019 10:32am

We were in this exact position in 2008, we kept quiet, hubby got a new job and we've been grand, it doesnt always work out like that and we're lucky we dont have a huge mortgage.

house_Hunter_ · 22-01-2019 10:34am

I dont think we will be closing shortly as we're looking at new builds. Unless we get lucky and find a house in our FTB range that is completed but unsold (not many of these)

Claw Hammer · 22-01-2019 1:44pm

New builds have a tendency not to finish on time so don't depend on a builder or agent say the house will be ready for handover on a given date. It can ofte be months later. You also have to allow for snagging.

Annie20 · 07-03-2020 9:39am

Do the bank ask for payslips for final drawdown?.. When they request certs of completion and compliance and final valuation as ready to live in?

q85dw7osi4lebg · 07-03-2020 9:40am

Annie20 wrote: »

Do the bank ask for payslips for final drawdown?.. When they request certs of completion and compliance and final valuation as ready to live in?

They didn't for me. I was jobless drawing down.

Bank of Ireland.

memoirs · 24-03-2020 5:35pm

Abigail Red Newsstand wrote: »

They didn't for me. I was jobless drawing down.

Bank of Ireland.

Can I ask was BOI your personal bank as well as your mortgage supplier, as in could they view your accounts anyway without asking for statements? In a similar position and wondering if they'll be looking for Covid payments on records.

Bargain_Hound · 24-03-2020 5:42pm

Anybody got any experience of PTSB asking for more documentation on drawndown? We got AIP 2 weeks ago, sale agreed 2 weeks ago, just waiting for loan offer for property to be issue to solicitor. Herself has been temporarily layed off due to Covid-19. Not concerned about affordability as I am on a comfortable salary in a stable job.

GingerLily · 24-03-2020 5:48pm

Bargain_Hound wrote: »

Anybody got any experience of PTSB asking for more documentation on drawndown? We got AIP 2 weeks ago, sale agreed 2 weeks ago, just waiting for loan offer for property to be issue to solicitor. Herself has been temporarily layed off due to Covid-19. Not concerned about affordability as I am on a comfortable salary in a stable job.

Banks know there has been a huge number of people laid off, I would be shocked if they didn't check.

MSVforever · 24-03-2020 8:47pm

BOI were asking for more pay slips and salary certificate right before drawdown. Even our mortgage advisor was surprised about this but the underwriters were demanding this. We don't have our bank accounts with BOI which might be the reason.
This was in March 2019 so it could be tougher now.

memoirs · 24-03-2020 9:30pm

Thanks MSV, not comforting but good to know.

Dolbhad · 24-03-2020 10:03pm

MSVforever wrote: »

BOI were asking for more pay slips and salary certificate right before drawdown. Even our mortgage advisor was surprised about this but the underwriters were demanding this. We don't have our bank accounts with BOI which might be the reason.
This was in March 2019 so it could be tougher now.

I was wondering with COVID and job losses, would the bank start insisting on pay slips before drawn down.

Claw Hammer · 25-03-2020 3:32pm

Dolbhad wrote: »

I was wondering with COVID and job losses, would the bank start insisting on pay slips before drawn down.

I would think so.

tomister · 26-03-2020 11:26am

I'm just drawing down at the moment with BOI and they've not asked for any up to date pay slips or salary cert. My 6 month Letter of Offer approval expires in 14 days but they're happy with whatever is in the current application. My current account is with them though

Bargain_Hound · 30-03-2020 2:08pm

Ptsb requested more documentation from us today due to the job losses with the pandemic, even though we are already approved.

memoirs · 30-03-2020 2:20pm

That's awful. Especially hard to prove to a bank right now if you're temporarily laid off that the employer will have you back when it's over. Are you nearing the end of the 6 months?

Mortgage Approved and losing job

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