Requirements around mortgage approval and employment ending.

[Figment]

Hi Guys, looking to pick your brain on this.
My wife and I are mortgage approved in principle and have a deposit down on a house.
This was based on 1 salary, my own.
The seller is due to move out / finalise sale in March.

My wife has just got a great job. Higher salary than myself and I have found out my own role is due to finish in February. I am lucky to be in demand so do not see an issue taking on another role however I am worried about timing for drawing down the mortgage and signing for the house.

How big an issue is this for Banks?
Is it best not to mention the change to them until the dust has settled?
Should I move to a new job immediately (I think the banks need you to be in your current position for at least 6 months).
Should I try to stay on the company books in some way for another month or two?

Any advice grateful.

 

[44brendan]

How big an issue is this for Banks?

This is a fundamental change to your employment circumstances and earnings. The SIP previously given is on the basis of information provided by you to the Bank. If that information has substantially changed (in your circumstances it has) you need to inform the bank immediately and provide them with the new information.
Realistically from a loan approval perspective you would be better off retaining your current employment status until you have a full loan offer letter from the bank.

 

[michaelm]

This will be a deal breaker for the bank. If it were me, and I wanted the purchase to go ahead, I wouldn't mention it at all, ever, and I would cling to current position any way I could. March seems very far way in this situation, I'd look to expedite that also. One difficulty that may well loom large is that the bank will probably require some form filling by the employer stating salary and permanence of the position. All a bit trappy.

 

[Thirsty]

44brendan is of course 100% correct, but from a practical point of view, I'd be with michaelm - say nothing and get purchase sorted/loan drawn asap.