Loan offer, new job with probation

georged3rd

Frequent Poster
Messages
45
Our scenario:
Contracts signed including loan offer for joint mortgage with bank A via LTI exemption. New build progressing.
New job contract just signed, higher salary, includes 6 months probation.
Loan offer with bank A needs to be renewed before it expires. We intend giving the last 3 payslips from my old job to bank A to ensure the loan offer isn't pulled.

In parallel we're applying for a mortgage with bank B & C based on my old job's payslips etc, in case bank A request next month's payslip & pull their offer.

Based on my old job's salary we'd need an income exemption with back B & C. We're confident bank B will give this to us, less so with bank C.

We'd ideally like to go with bank C but their exemption rate is slightly higher than their nom LTI exemption rate. Based on my new job's salary we wouldn't need an LTI exemption. Naturally we'd prefer the lower rate.

Questions:
1. Sould we risk advising bank C of my new job during the application process with a view to availing of the lower rate?
Cons: risky, we may then be refused any mortgage from bank C due to probation.

2. If we don't tell any of the banks re my new job (until after drawdown at least) & get approved from bank C based on my old salary then once my probation has ended (+ 6 months? i.e. 12 months after drawdown?) can we switch to bank C's lower non-LTI exemption rate?

Any advice welcome.
 
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Brendan Burgess

Founder
Messages
38,671
You are taking a huge number of risks here which could devastate you.

You have signed the contracts for something - presumably the building costs?

The bank pulls the loan because you are no longer in a permanent job. The other banks refuse as well.

You would not be able to meet the terms of the contract.

Tear up the job offer. It's the wrong time. Alternatively, tell your new employer the problem and ask them to defer the start date until after the money is drawn down.

Brendan
 

Coldwarrior

Frequent Poster
Messages
170
I hope you got a 'subject to mortgage approval' clause added to the contract before you signed. If you're quick and you renew the mortgage approval now before moving jobs, instead of waiting until its nearly expired, would it last long enough to get you to the expected completion/drawdown date? If neither of the above then then as BB said turn down the new job or try to push back the start date.

You can always switch in the future, so don't worry too much about which is the best rate etc now, go with the one you're most likely to be able to drawdown/complete the purchase with.
 

David1234

Frequent Poster
Messages
215
Do you not need a current salary cert when applying? I needed one for each bank.

This could easily blow up in your face if you are not careful
 
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