Changing Jobs during mortgage process - Advice / Implications

qwerty08

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Have a family member who went about getting a mortgage recently and has filled in all the relevant forms. He has 5 years secure employment, a strong record of savings and basically ticks all the boxes. He has already obtained approval in principle (which I know means very little) and in the last fortnight he has lodged all the requested documentation with the Bank.

Now, in the last week he has been head hunted by another company to join them on a permanent basis. He will be getting a 10k uplift straight away with access to higher potential bonuses. Trouble is he doesnt want to put the mortgage process in jeopardy. He has received a draft copy of his new contract and there is no reference to a probationary period etc, so what is the best approach here? Does he come clean with the bank and say he is changing jobs or does he try to close out the process before pay cheques from the new employer start hitting his account.

I should point out he probably has an 8 week window as he needs to serve out his notice anyway.
 
Have a peep at the loan docs: there is usually a material adverse/change of circumstances clause.

personally I don't see a problem, its not adverse:)
 
My advice would be to get the mortgage sorted ASAP, you never know what stumbling blocks could be put in your way. I recently looked to buy and change jobs at the same time. I ended up changing jobs first and the bank said I could not draw down the mortgage unless I was off my probationary period. So that may apply here. Get the house sorted and then change jobs.
Mike
 
I ended up changing jobs first and the bank said I could not draw down the mortgage unless I was off my probationary period. So that may apply here.

As far as I'm aware, no bank will give a mortgage to someone who's on probation. So Mike's experience would be repeated across all lenders. If qwerty's family member can definitely get written confirmation from the new employer that he's not on probation from day one, he'll be okay. Otherwise it will cause a delay until his probation period has ended.
 
Thanks for the responses. It's partly what I expected. If anyone has any other experiences would love to hear them.
 
Was told by an adviser from BOI that not only would I not get a mortgage until my probationary period was finished(fair enough) but I would need to be employed a further 6 months after the probationary period ended before they could approve the mortgage. Found it a little strange so I'm sure there are a lot of other quirky reasons they might not look to kindly on switching jobs in the middle of the process. I would think the best bet would be to try close out the process before the new role began.
 
AFAIK, whether a work contract is permanent or not, employment law kicks in after 12 months and it is more difficult to let someone go, this may be the reason for BOIs decision.
 
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