Contracts signed this week. I found out today my job is going.

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Swanson77

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I’m terrified. I’ve just been told my job is gone today. We signed contracts to buy a house Monday and they signed yesterday.

I will get one more pay packet next month and then I’ll get a redundancy. The redundancy will be about 60k I think.

We someone please tell me what to do or what could happen. I’m so nervous.
 
If it's a standard mortgage contract, it'll be "subject to mortgage".
Your mortgage will now fall through, and the contract will be void. Contact your solicitor as early as they are available to confirm.
 
Is it a 2nd hand house?
Your solicitor should have insisted on the clause being in the contract. Do you have a copy to check if something along the following lines is included?

'This contract is subject to the purchasers obtaining a loan sufficient to enable them to purchase the property herein and the said loan approval being valid and ready for drawdown at closing date hereof and in the event that the said loan approval is not obtained or is not valid and ready for drawdown at the closing date, the the purchasers shall be entitled to rescind this contract, in which case they shall be refunded their deposit in full, without interest, costs or compensation thereon. Furthermore, this contract is subject to the purchasers being able to comply with all loan conditions attaching to any such Loan approval received from haven mortgages and in the event that the purchasers cannot or do not comply with any of these conditions by the closing date herein, then once again the purchasers can rescind this contract in which they are entitled to a full refund of their deposit without interest, costs or compensation thereon.'
 
We have the loan offer signed already.

we will also lose our deposit at at minimum right?
RedOnion said:
Is it a 2nd hand house?
Your solicitor should have insisted on the clause being in the contract. Do you have a copy to check if something along the following lines is included?

'This contract is subject to the purchasers obtaining a loan sufficient to enable them to purchase the property herein and the said loan approval being valid and ready for drawdown at closing date hereof and in the event that the said loan approval is not obtained or is not valid and ready for drawdown at the closing date, the the purchasers shall be entitled to rescind this contract, in which case they shall be refunded their deposit in full, without interest, costs or compensation thereon. Furthermore, this contract is subject to the purchasers being able to comply with all loan conditions attaching to any such Loan approval received from haven mortgages and in the event that the purchasers cannot or do not comply with any of these conditions by the closing date herein, then once again the purchasers can rescind this contract in which they are entitled to a full refund of their deposit without interest, costs or compensation thereon.'
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It’s second hand. I cannot see anything like that in the contract.
 
You'll need to speak with your solicitor. There should be a clause similar to the above if they used a standard contract. The wording I gave might be an old version.

Even though you've signed loan offer, there's probably a clause that the bank can withdraw the offer if there's a material adverse change in your financial circumstances.

Talk to your solicitor.

If the correct clause is there, you might be able to walk away and get your full deposit back.
 
It does say “mortgage is subject to a change in favour of Bank of Ireland mortgages. The purchases shall accept an undertaking by the vendors solicitor to immediately redeem the charge from the proceeds of the sale and to furnish a discharge together...”

stupidly enough, after we catching the wrong name on the contract, I note now they have the wrong bank in there too. We didn’t go with BOI either.

Surely he hasn’t allowed us to sign a mortgage offer that wasn’t up to basic standard.
 
No need to worry. I am currently being made redundant also and I can tell you the market is very good for employees at present. CV19 will impact this in the short term so don’t worry. 60k is a lot of money so you have a great cushion that will go a long way.

When are you due to move in?
how much is your mortgage?
How much is the house worth?
How long (in a normal environment) would it take for you to get another job?
Does your partner work?
Do you have children?
Why do you have to tell the bank anything at the moment?
 
I’m afraid if I don’t tell the bank, they will find out and I’ll be in trouble.

We have a daughter who is three. My wife stays at home to mind her. I’m the sole provider. Mortgage is 207k and about 950/month.
I have no idea how long it will take but as mentioned we should have about 60k and another 20k and we are very frugal so I could be out of work for 2 years.
My concern is that I tell the bank (or they find out) and we then lose our mortgage deposit.
 
Swanson77 said:
enough, after we catching the wrong name on the contract, I note now they have the wrong bank in there too. We didn’t go with BOI either.
Click to expand...
That means that the seller has a mortgage with BOI.

Don't panic. Don't do anything until you speak with the solicitor.
 
He said last week that we lose the deposit if both parties sign the contracts.

But how has he allowed us signed something that misses what many of you are saying is a very basic clause in a standard mortgage.

Added my job loss to the Coronavirus issue, we are so nervous.
 
Swanson77 said:
Right now, we would rather not. We can rent for another couple of years get new jobs, save more and see what’s the situation with property at that stage.
Click to expand...

How do rents compare mortgage repayments? If you can afford to rent for a while is the same not true of paying the mortgage? What state is the house in?

Assume worst case scenario in the long run it may be difficult to pay rent/mortgage. You might have greater security of tenure with the mortgage than renting. Does overstaying versus mortgage arrears provide better short-to-medium term peace of mind?

While I'm not advocating buying a house to end up in arrears given our rental market it might be more advantages to try and proceed. By no means ideal but perhaps a least worst option.
 
This is a huge blow to you and must be very stressful. Take a breath.
I know this clause is sometimes entered in the contract but when I bought a couple of years ago it was not standard. I remember one sale falling through because vendors solicitor wouldn't accept and buyers solicitor insisted on it. I known I didn't have it in my contract.
From the price you are paying you are likely to be in a rural area. New jobs may be difficult to secure. How settled are you. Might you have to leave the area for work? Can your wife go back to work easily?
 
When we were buying our house the solicitor said that if something just happened usually the deposit would be returned. People are not monsters either. It might only be if a buyer had messed the seller around for months and months and then pulled out the seller might want to keep the deposit as compensation. The deposit is held in the other solicitor's account, it hasn't actually gone to the buyer yet til the closing date.
I would hope the seller would be kind to you in these circumstances.
 
My feeling is that, given the issues with COVID 19, they might dig heels in as house prices could correct heavily and they might not sell for anything near what they agreed with us.

they have also been quite hard to deal with so far.
 
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