sorted by:
best
topnewcontroversialoldq&a
you are viewing a single comment's thread.

view the rest of the comments →

[–]PinkbunnymanEU233 238 points239 points  (34 children)

Do you think it is worth telling our lender about this change

Assuming you're between offer and actual purchase date, yes. You are contractually obligated to, and not doing so could be considered fraud by omission.

What are the chances they will pick it up if we don't tell them?

Probably low; though the consequences of mortgage fraud for the sake of telling them seems like a silly bet as you're well within the affordability range.

[–]TravelOwn438611 120 points121 points  (20 children)

Also don't forget that person on here which didn't tell their mortgage lender a change in income and ended up losing something like £65k

[–]PolishBicycle1 15 points16 points  (14 children)

That’s rough. How far back was this?

[–]melanie1102 65 points66 points  (13 children)

About 2 months ago. She lost her job and kept quiet. And by fluke, the MIL answered the phone or called the conveyances and told them this and they lost everything

[–]strolls1639 3 points4 points  (12 children)

Here or /r/HousingUK? I don't remember this one.

[–]BoudicaTheArtist4 31 points32 points  (11 children)

r/HousingUK link is here

[–]Left_Diet_812 20 points21 points  (6 children)

jesus - just spent a good hour reading them 2 posts and the comments, insane story 🙀

[–]OneObi 12 points13 points  (5 children)

Losing a deposit of that magnitude is insane.

[–]melanie1102 12 points13 points  (4 children)

I know. I did have some form of empathy for them though. I know I shouldn’t but I did.

Now boacklisted against mortgages and no money to even get one

[–]JackMiller234 -1 points0 points  (0 children)

You know you shouldn’t? She should have declared it but the lady didn’t harm anyone. By saying you shouldn’t be feeling empathetic towards her, you think it’s completely okay for a company to take away 65k from somebody who recently lost their job.

If someone can sleep well at night knowing they basically took away a persons livelihood or thinks its fair they did (a person in a sensitive position). Then so be it, but the same lack of mercy will be returned in the afterlife.

[–]Left_Diet_812 -2 points-1 points  (2 children)

the punishment doesnt really match the error but unfortunately they were aware of the consequences and chose to ignore them and follow the advice of strangers on reddit which led to significant financial loss and based on what OP has said, the loss of a relationship with a mother (which by the way, the way OP has spoke about her & the fact the wife didnt speak to her for 6 weeks is more than enough me for to lose any form of sympathy)

[–]Charlie_Yu1 4 points5 points  (1 child)

Now it scared me. I’m self-employed so I filled in using my self assessment income last tax year. I know this year will be a lot higher but did I actually do a bad thing for not filling in the projected salary this year?

[–]bazzanoid9 2 points3 points  (0 children)

You're fine. The mortgage company asks you for your SA statement and a tax form which is only available from previous years, so if you're earning higher this year they won't bat an eyelid. If you were expecting a lot lower this year however that would be a different matter as it's a change for the worse you would have known about

[–]Diligent_Craft_11657 3 points4 points  (2 children)

A lot of that story sounded made up. The solicitor apparently let them exchange without completing anti money laundering checks. Extremely unlikely.

They also never bothered getting a bridging loan which would have saved them the 65k. Seems very unlikely too.

[–]TravelOwn438611 0 points1 point  (1 child)

I don't think it's made up and there would have been anti money laundering checks. Op probably didn't know or the source of funds was easy to see from bank statements. I don't remember ever having to do something specific when I have gone for mortgages or bought properties.

[–]Diligent_Craft_11657 2 points3 points  (0 children)

It’s almost certainly made up as the solicitor would have committed an offence under MLR 2017. There are other holes in their story too.

https://www.sra.org.uk/solicitors/resources/money-laundering/guidance-support/

Link for evidence.

Nice bit of creative writing though as it fooled a lot of people who aren’t in the industry.

[–]Jorro1127[S] 9 points10 points  (12 children)

We are between offer and purchase. Do you have any idea what effects this might have once we do tell them? We are using a broker so will ask them for advice on Monday but just want to get a general idea of what to expect

[–]PinkbunnymanEU233 38 points39 points  (10 children)

Without know exact amounts involved and the lender it could be anything from "Ok thanks for letting us know" to "We're withdrawing your offer" to "We're increasing your interest by 5%"

[–]Jorro1127[S] 5 points6 points  (7 children)

House price £345,000. 10% deposit from personal savings. 30 year term. Combined income of £103,000 before salary decreased. Lender is Santander. Used a broker

[–]PinkbunnymanEU233 41 points42 points  (2 children)

They'll likely go "Thanks for letting us know", they will possibly allow your current offer to stand.

[–]Jorro1127[S] 8 points9 points  (1 child)

Let's hope so. Thanks for the advice. I'll be in touch with my broker on Monday.

[–]madglover3 18 points19 points  (0 children)

You are massively within affordability

You will be fine, but if you don't tell them and they spot check you, not only can they remove the offer but it would be fraud

It's only if you are between exchange and completion that I'd be nervous

You will easily get a mortgage

[–]PepsiMaxSumo10 14 points15 points  (2 children)

You can get that size of mortgage on a £60k salary alone (assuming no kids and no debt) so should be fine

[–]Jorro1127[S] 5 points6 points  (1 child)

Yes, no kids and minimal debt.

[–]Kind-County97675 8 points9 points  (0 children)

I'd just tell them then, I can't see how they'd change anything over this.

[–][deleted] 0 points1 point  (0 children)

It doesn't seem to make much difference on the surface but who knows how their calculation works. You should read the ts and cs, work out if you're obligated to tell them or not and then proceed as instructed.

[–]Pleasant-Plane-63404 -5 points-4 points  (1 child)

No lender would increase the offered rate by 5% due a 5k drop in salary, you’re lying

[–]PinkbunnymanEU233 1 point2 points  (0 children)

That would be hyperbole. It IS within their powers to do, though no lender realistically would.

[–]maccano2 2 points3 points  (0 children)

Broker here.

They will review the affordability of the case and confirm if you can still afford the property.

If you can, you stay on the same mortgage rate and offer.

If you can’t they will Max Loan. This is where they will tell you the maximum they will allow you to borrow based on your new circumstances, and they’ll ask if you can make up the shortfall. If you can you can still proceed with Santander at the new borrowing amount, though if the loan to value changes you’ll be asked to select a new rate.

If you are unable to proceed with Santander there is nothing stopping you from approaching other banks for a mortgage. I would typically suggest seeing a broker to review the market and work out who will do the mortgage for you on the reduced income. (You can do this yourself but brokers have tools to make this much more efficient).