buying a house

carlodlin

We are in the process of buying a house we are sale agreed and the solicitors are doing there bit, but after going sale agreed i took redundancy and started a new job. The job pays the same but i am only in it a couple of months it did give me a lump sum to do the house up,The bank have asked for costings for doing up the house and where did the lump sum come form what do i tell them

Samuel T. Cogley

You need to get advice from your solicitor and bank ASAP. If you're on probation in the new job, the chances are you won't be able to draw down your mortgage.

Stanford

carlodlin wrote: »

We are in the process of buying a house we are sale agreed and the solicitors are doing there bit, but after going sale agreed i took redundancy and started a new job. The job pays the same but i am only in it a couple of months it did give me a lump sum to do the house up,The bank have asked for costings for doing up the house and where did the lump sum come form what do i tell them

Was the bank aware that you were taking redundancy when you were approved for a mortgage?

carlodlin

no It happened after it was a change of position in the job either take the job or get out was my option, after 18 years I could not turn down that amount of money as i also had another job to walk into

Lenny

Don't tell them you changed job, you have kept the lump sum quiet or seperate.. Or else make it up that you got it as a gift....

3DataModem

Lenny wrote: »

Don't tell them you changed job, you have kept the lump sum quiet or seperate.. Or else make it up that you got it as a gift....

Exactly this.

There are 3 possibilities, requiring different actions;

1. If you've already told them you've changed job, then they'll make you go through credit process again. At least you have the lump sum and new job which improves things. Good luck.

2. If you've NOT told them you've changed job and NOT told them about the redundancy money, can you keep the money separate from them? If you already have the loan pack issued then they won't look for bank statements again.

3. If you've NOT told them you've changed job and they HAVE seen the money, you've no choice but to try and convince them it was a family gift or loan. If you can afford the house without it, transfer it 'back' to a family member. If you cannot afford the house without it, then you'll need to convince them it was a gift from mammy, get mammy to sign a letter to that effect, and then mammy will have to sign a Deed of Confirmation (and get it witnessed, and get indepedent legal advice) to that effect before you can close.

I know someone who has been through exactly this.

carlodlin

they have seen it in my account dont need the money to buy but it was to be used to finish the house after we have bought it

august12

carlodlin wrote:

they have seen it in my account dont need the money to buy but it was to be used to finish the house after we have bought it

I got a lump sum transferred into my account from a close relative, the bank queried this and wanted a written letter from this person confirming it was a gift as opposed to a loan, further along the process, bank informed me this person would also have to sign another letter of confirmation arranged by a solicitor, I argued this money did not form part of the mortgage approval amount so they backed down. On another note, I wouldn't advise telling them about the job change as you will go through the application process again, or maybe this will happen anyway if you only have approval in principal, that's what I had when I went sale agreed and bank requested my most recent payslips for full approval.

Samuel T. Cogley

They're likely to request salary certs/payslips nearer close. We'll pop this one down to 'white lie fraud' and keep quiet and hope nobody notices then.

3DataModem

Samuel T. Cogley wrote: »

They're likely to request salary certs/payslips nearer close. We'll pop this one down to 'white lie fraud' and keep quiet and hope nobody notices then.

They generally won’t request anything as long as you close before original approval expires.