What Can Happen to Your Mortgage Offer with a Change of Circumstances

Buying a home can be a long process which means that things can, and do, change. While not all changes will be relevant to your mortgage application, any that involve your job, earnings or general financial position, will require a conversation with your lender.

By following this guide, you’ll have a clearer understanding of what changes in circumstances can affect your application, and the steps you can take to still secure the mortgage you need.

What changes in circumstance could affect your mortgage application?

In most mortgage offers, the small print includes a rule stating that you must inform your lender of any material change in circumstances.

Here are some examples of what that includes:

The implications of these changes depend on how they affect your personal finances and ability to repay your mortgage. This is where a mortgage broker can be really helpful. They will understand how a lender might react to any of the changes listed above and will advise you on the best way to ensure you can still get a mortgage.

What does it mean for your mortgage application?

Worst case scenario – your mortgage offer could be withdrawn, resulting in the sale falling through. Mortgage offer rules state that a lender must be informed of any change in circumstances that could affect your ability to repay.

If not, it’s likely the change will be picked up in the final checks made before completion. This could put the whole property sale at risk right at the point when the keys are about to be handed over to you.

In addition, your lender could add notes to your application for other potential lenders to see.

However, if you inform your lender about the situation – whatever that may be – they will likely reassess your application and move forward from there. This could result in your receiving a new, lower mortgage offer than your original one.

Alternatively, if you speak with a mortgage advisor they can help you find a new lender if necessary, who can provide the mortgage you needed on the original terms.

How to get a mortgage if my circumstances change after receiving an offer

If, for whatever reason, your circumstances significantly change, you must inform your lender straight away. If the offer is withdrawn – don’t panic! There’s some steps you can take straight away that can help put your mortgage application back on track.

1. Get your updated documents ready: Get together all the paperwork relating to your new circumstances and your finances as you will be required to either update your existing application or make a new one. Having the paperwork to hand will make that process easier. It will also ensure you can answer any questions that arise when you talk to your new lender and can show them proof of any new salary, if it’s temporary or permanent, the property valuation or the details of the new home you’re interested in. Our guide to mortgage applications will give you the full list of documents you need.
2. Check your credit reports: This is especially important if your circumstances have changed. Knowing the latest details that are logged about you and your finances means you can be prepared for any questions your new lender might ask you about why your circumstances have changed. You can also make sure the details on your reports are correct and take steps to have them corrected where required. Our dedicated credit reports hub makes it easy to download your credit reports.
3. Speak to a mortgage broker: Get your paperwork together and then speak with a mortgage adviser who has experience in helping people in your situation secure a mortgage. Your broker will discuss your application and circumstances and can advise you of any rules relating to your mortgage offer. They can also help you complete a new application, with a new lender if necessary and take you through the process to make it easier and crucially, more likely to be approved.

With our free to use mortgage broker matching service we’ll take some of your details which will allow us to place you with the right broker for your requirements. Get in touch to find out more about how we can help you.

Can you remortgage

Remortgaging is one option for existing home owners experiencing a change in circumstance, including those listed above. This will give you the opportunity to complete a new application form with your current financial situation (after the change).

However, while your history of managing your mortgage repayments will prove positive for your application, other elements, including your new circumstances might be less helpful. By speaking with a mortgage broker experienced in cases like yours, they will advise you as to which lender is best placed to provide you with a mortgage and help you get a yes from your chosen lender.

Get matched with an experienced mortgage broker if your circumstances have changed

Personal circumstances can change all the time so try not to worry if yours have altered after you receive a mortgage offer to buy a new home. Instead, contact us and we’ll connect you with a mortgage advisor who has experience helping people in these situations.

You can then have a free, no obligation chat with a broker and move forward. Having expert advice as you buy a home can help make the process easier and give you a better chance of getting your mortgage application approved.