My friend has a mortgage offer on a new house but has just lost his job. Does he tell the mortgage lender?

My friend, who is single, lost his job last week. He has a mortgage offer on a new house he is buying and says he's going to continue to buy it as he can cover the mortgage by getting lodgers. Does he need to tell the mortgage lender about his changed circumstances by law?My friend has a mortgage offer on a new house but has just lost his job. Does he tell the mortgage lender?
It's a civil matter; under the terms of the contract he is entering into, he does have to disclose any material changes to his circumstances prior to completing on the purchase. Some lenders will state this specifically, others will simply say that 'we reserve the right to withdraw the offer if your circumstances have materially changed'.





Lenders will also stipulate on residential mortgage offers that permission must be sought before the property can be sub-let or lodgers taken-on.





If your friend does not disclose any material changes before completing, he could find himself in court. This isn't a vague threat that lenders band about - it's happening increasingly more often as lenders want to protect their business. At the very least the lender will almost certainly call-in the loan rather than charge a higher rate of interest, which could leave your friend in the brown, smelly stuff if the value of the house has gone down and he has to pay redemption fees (oh yes, they're still payable), charges, fees etc and can't get another mortgage. The chances of getting another mortgage while unemployed are minimal at best, and impossible if he has fraudulently obtained this mortgage.





He could always speak to the lender, tell them his circumstances and ask them to hold the offer open until he finds a new job. They'll want to reassess him, but it may save the fees.My friend has a mortgage offer on a new house but has just lost his job. Does he tell the mortgage lender?
Yes he does have to declare his changed circumstances, they have offered your friend a loan based upon the details he supplied to them in the original application. He has lost his job which would affect the original offer. The mortgage company would not accept someone did not have a job but was intending on taking in lodgers.
Yes, he must tell them. At closing when you sign papers one of them states nothing has changed. If he signs that, he is committing fraud. Also, most mortgage companies now do a verbal verification of employment prior to closing. It will come out, so cut all losses now. Let the sellers get their house back on the market.
Yes, and tell your friend to PLEASE not contribute to another loss in the housing market! My pocketbook is drained from all of these bailouts, we should all learn a lesson---DON'T BUY WHAT YOU CAN'T AFFORD! and if your friend lost his job then he definitely cannot afford to take on a mortgage right now! How irresponsible to think about going forward with the purchase after a job loss.
Yes - his circumstances have changed .. in any event, Lodgers will not be permitted without informing the Mortgage company, who will then put him on a higher rate of interest ....





He needs to find another job asap with the same or better salary ... even so, they may decide to amend or withdraw the Mortgage offer ...
He had better cancel the deal. How does he know he can get lodgers. for one, and how long will they stay for another? And if he gets deadbeats who pay rent for one month and then stop paying, it may take three months or more plus going to court to get rid of them.
Yeah by law he should because his circumstances have changed before he's signed on the dotted line! Hope he's got his lodgers lined up ready though!x
not certain if this solves your problem but what I suggest doing in hard financialsituations is to obtain a recent copy of your credit report%26amp;score. i got my credit report%26amp;score at http://creditxguide.notlong.com
by law he does.