Jump to content

Mortgage advice - Verification of Employment


Recommended Posts

Friendly forum folks.

 

I am with a friend of mine at the mo who is moving house and we can't reach a consensus. He and his missus are moving in the next 2 months and have sold their home, plus had an offer accepted on a new house. The challenge is that his gf is changing jobs in the next 3 weeks (albeit for more money).

 

The question: do mortgage lenders verify employment after they have given you the mortgage offer in principle?

 

My view is that they do perform a VOE before completion (i'm pretty sure I remember my mortgage application having to have this done) - his is that they don't perform VOE :lol:

 

views?

Link to post
Share on other sites

I'm pretty sure (but happy for Sarnie to prove me wrong) ........... you make a declaration at the point of time ie what she's doing when she signs the form

Link to post
Share on other sites

No first hand experience, but when asking about employment / salary, isn't there usually a question along the lines of "do you expect any changes to this in the near future".

Link to post
Share on other sites

Friendly forum folks.

 

I am with a friend of mine at the mo who is moving house and we can't reach a consensus. He and his missus are moving in the next 2 months and have sold their home, plus had an offer accepted on a new house. The challenge is that his gf is changing jobs in the next 3 weeks (albeit for more money).

 

The question: do mortgage lenders verify employment after they have given you the mortgage offer in principle?

 

My view is that they do perform a VOE before completion (i'm pretty sure I remember my mortgage application having to have this done) - his is that they don't perform VOE :lol:

 

views?

From what I remember about getting our mortgage in 2015 with the Principality to verify employment/financial income they just looked at our bank accounts going back 3 months prior which obviously showed a regular monthly income as well as out goings at the time (which were very minimal as both living with parents).

 

The building society stated/offered us the maximum amount that we would be allowed going from our combined incomes, out goings as well as projected out goings. (FYI ~ The mortgage offer was valid for 3 months after which point if we hadn't purchased a house we would need to repeat the application process AFAIK) We then looked at homes for sale up to that maximum limit we were allowed and after viewing the one we liked began making offers until it was accepted .

 

At that point we began arranging finalisation of our mortgage for the agreed amount and no further evidence was provided as far as I can remember as it was all done before hand.

 

It will no doubt though vary between banks, building societies and other mortgage lenders. ;)

Link to post
Share on other sites

When we moved last year the wife was going to have to give her job up or do a 140 mile each way commute. It was only very briefly questioned by the mortgage adviser at the building society when we first went in to fill in the initial application, At that time we were still toying with the idea that she might keep the job until she found a new one over here and stay over there to do her 3 shifts but when it came to the move she just packed it in and we never heard from/had any problem/contact from the building society about it. I presume they don`t check and were none the wiser/not really interested as long as you make the payments.

Link to post
Share on other sites

99% sure they do it beforehand, I'm almost certain they did with me when we bought our place a couple of years back.

 

The lender will ask very specifically if there is likely to be any change in circumstance in the near future anyway, and lying and then getting caught out means they'll either withdraw the offer or simply ask for the money back in one lump any way. Risky business.

Link to post
Share on other sites

1. Is the job & industry the same?

2. Is there a probation period?

 

If yes to either of these, then it could be refused. I went from Retail to Teaching and they wouldn't take into account any of my old payslips, so had to wait til I'd been in my current job for at least 3 months. Even then, not many people would let me apply whilst still on probation. Ended up with the Halifax, as they are one of a small handful who would lend to me whilst not fully permanent.

 

Either way you are supposed to declare any change in circumstances or it can invalidate your application if they find out. So not only do you lose your mortgage, if it's not already paid out, your house move gets delayed and you have to apply for a new mortgage which affects your credit rating.

Edited by The Bounty Bar Kid
Link to post
Share on other sites

 

The question: do mortgage lenders verify employment after they have given you the mortgage offer in principle?

 

My view is that they do perform a VOE before completion (i'm pretty sure I remember my mortgage application having to have this done) - his is that they don't perform VOE :lol:

 

views?

 

Completion of what the sale or mortgage application?

 

I changed employers the same week as our mortgage application went into Barcacalys. I declared it all upfront, I than had to provide 6 months worth of bankstatements, as well as evidence of having the deposit needed for the house in my savings account. I than had to provide my new contract details and letter from new employer stating the terms of my new contract.

 

In the end it was all OK, but they went through everything with a magnifying glass.

 

Once the mortgage application was approved they didn't check anything else, I could have been made redundant the next day but they wouldn't have known unless or told them or couldn't pay the mortgage on time!!

Link to post
Share on other sites
I than had to provide evidence of having the deposit needed for the house in my savings account.

Out of curiosity, how do you do this? Printscreen??

Link to post
Share on other sites
I than had to provide evidence of having the deposit needed for the house in my savings account.

Out of curiosity, how do you do this? Printscreen??

 

Sort off, had to print off all our savings details. Not entirely sure if it was in their legal right to demand all that info, but we just wanted the mortgage approved ASAP so handed everything over. We could have faked the whole lot, no idea just how they verify all the documents.

Link to post
Share on other sites

Sort off, had to print off all our savings details. Not entirely sure if it was in their legal right to demand all that info, but we just wanted the mortgage approved ASAP so handed everything over. We could have faked the whole lot, no idea just how they verify all the documents.

Guessing they called your bank and asked them to verify. :shrug:

Would be too easy to just Photoshop yourself a millionaire :lol:

 

Right ballache for those of us with our moneys split between multiple accounts though.

Link to post
Share on other sites

Thanks guys - I'll send this over. I think my recommendation of declaring all changes upfront is the right one so thanks for helping me tell him he is wrong.. I'll take pleasure in it! :lol:

Link to post
Share on other sites

If there's one group of people I wouldn't muck around with and try and blag, it's mortgage lenders as you literally put your entire house on the line.

 

I also wouldn't muck around insurers. Or the taxman. Or armed gendarmes.

 

/spanish inquisition :lol:

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

×
×
  • Create New...