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When do you need to disclose?

Discussion in 'Property Finance' started by 274, 26th Jun, 2015.

  1. 274

    274 Member

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    Hi everyone,
    My partner and I are considering refinancing our PPOR. We are expecting that my partner will be made redundant, but this might be 6 months away, or maybe 12 months. Do we need to disclose this on our application, or is the redundancy too far away to worry about?

    Thanks :)
     
  2. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    if u were my client id say thats a long term away, and would advise you to look at seeking alternate income ASAP.

    ta
    rolf
     
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  3. marty998

    marty998 Well-Known Member

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    Would your partner be getting a substantial redundancy package that could tide you over anyway until they find another job?

    If it's large enough it could essentially be a couple of years of minimum payments.
     
  4. 274

    274 Member

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    Thanks for the replies. Unless the "perfect job" comes along in the meantime, we have decided to hang out for the redundancy package. It will be a substantial amount for us, and we think getting another job will not be an issue. Refinancing would lower our repayments, and the new loan we are considering is a much better product than what we currently have.
     
  5. 274

    274 Member

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    So, do we need to disclose - does anyone know?
     
  6. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    This is something you probably want to speak to your broker about personally. It's not a call to make without all the information.
     
    Last edited: 28th Jun, 2015
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  7. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Disclose something that may or may not happen? Not unless you have been given some form of notice.
     
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  8. 274

    274 Member

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    Thanks Jess and Terry.
     
  9. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    Is it a voluntary redundancy?

    The thing is if you tell a lender you're going to be made redundant in 6 months under normal circumstances you're not going to get a loan approved. And under NCCP as a broker we'd be hard pressed to deem a loan as not unsuitable, especially if there was a cash out/equity release component, unless there is new employment lined up.
     
  10. Big Will

    Big Will Well-Known Member

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    I am not a broker but I wouldn't tell personally. I could lose my job today (highly unlikely they got 2 hours to go) but this is unlikely however we never know what the future holds.

    My father before he went into retirement setup new loans against his whole portfolio and parked all the funds into the offsets. It has been 5 years now since he retired and he has never had to use those funds but if he didn't and hadn't set them up BEFORE he retired he would struggle to get finance through as he has no personal income but is receiving rents on about 15 properties.

    However you have to make sure that you are comfortable with the extra borrowing you will get with having 2 people employed and it will be your life/s in a mess if you cannot afford it.
     
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