About to buy a house which we can no longer afford. Absolutely gutted

[stressandmorestress]

I honestly don't know what to do for the best. We are due to complete within a week, I now don't know if this is going to be possible due to pending lockdown but my partners a CIS worker and just been sent home and will not be paid for forseeable. We are about to take out a mortgage of £146k. I'm an nhs worker so my job and pay is safe but my salary is around 20k less than his and my wage would only just about cover the mortgage, bills and car insurance etc. Wr wouldn't have a penny left. We love this house so much and have worked really hard to be able to finally buy a house of our own. Have bought everything for it and been so excited for months. I've never seen him breakdown and cry in the 6 years I've known him and it's heartbreaking. He wants to pull out as he's so worried about it being taken of us and us not being able to afford it. What the hell do we do?

Aww so sorry OP. I honestly don’t know what to advise but just wanted to say I hear you. We’re nowhere near your stage but had been looking at new builds and planning a move in the near future and it’s just so sad it’s all changed.

I dont have any advice either stress just that im sorry + i hear you.

Hi there,

Nothing helpful to add either, so sorry. Just wanted to say I'm so sorry for you both - it's so horrible to have everything change so suddenly.

For what it's worth, think I'd be inclined to talk to your solicitor and see if timescales can be pushed back slightly, to give you both a bit of breathing room but also because this situation is so dynamic at present. Sending you every good wish as you get through this together.

Personally, I'd still go for it, and hope that things work out.

Yes talk to your solicitor. The people you are buying from might appreciate a bit of breathing space too. I'm sorry, it's shit

Have you exchanged contracts? I would discuss with solicitor, the seller could be in similar boat or accept a delay, depends on their circumstances.

You’ll have to tell your mortgage lender about your change in circumstances - it’s likely they will then say that the mortgage is no longer affordable for you.

I’m sorry, it’s horrible.

Assuming your mortgage company withdraws their offer, be as upfront as you can with the sellers - you still love the house, you just can’t proceed right now.

Absolutely nobody is buying at the moment, so the house may still be on the market when things settle down.

I don't know what a CIS worker is. Does he not qualify for the 80% income?
Have you already exchanged? If you pull out you'll lose that money.

I would complete (without delay as things could grind to a halt soon anyway) and then arrange a mortgage holiday immediately. The banks don't seem inclined to be taking people's homes away during this and even if you can switch to paying interest only or something for a year, they'd be getting more than if you bailed out. Your DP will be able to get something even if it's not the level he's used to.

You may qualify for using your income protection insurance. Call both your solicitor and mortgage advisor. Income protection covers usually 12 months, is it likely he'll get another job by this time next year?

If you’re in Scotland all house sales are on hold, I should imagine rest of UK is the same or about to be?

What is your current situation? Are you renting and have you given notice yet? You need somewhere to live which will be hard with one less salary anywhere. If there isn't much difference in monthly cost then might be worth moving. But agree with pp if you were factoring his salary into the loan and you know it isn't secure now then you shouldn't proceed. If this is the case and you have exchanged you are in a tricky situation but you won't be the only ones so be honest as soon as possible. Your sellers might be in the same position.

I’d do the same as pinkydelight says

Ask yourself whether you would be able to live on the income without DP's income, and then make your decision.

Try not to make a huge financial decision based on hope.

Thank you all for your kind replies. It's really appreciated. At the moment we have moved out of rental and living with parents. We would not be given the mortgage on just my salary so does that mean it's definitely over for us, even given the current situation? He had worked lined up for at least the next year on 1 project, and had been offered a permanent role to start in a month or so with the person he is currently working for but obviously that hasn't started yet so no benefits. I'm really struggling to function at the moment I'm just so so gutted. We have signed all paperwork but not exchanged yet as my solicitor said they were doing exchange and completions on the same day at the moment.

I'd speak to the Solicitor and get their advice. If you are still keen on the house they might be willing to defer for a few months until things settle a bit. An estate agent locally said lots of people are pulling out of sales and no one is buying so your sellers might be glad of the commitment.

So sorry. It's really really sad and I'm sorry you saw your partner cry (I could say the same about my dh of 25 years, he cried this week about our collective situation and I've never seen anything like that from him before) but you shouldn't carry on with this transaction as you can't afford the house now due to changed circumstances.

House prices will plummet after the emergency is over, so sit tight and see what happens. It's all that any of us are doing.

I would just complete personally. Your DP can look to find another job so you have money to pay for anything extra you need ie any of the supermarkets which are desperate for staff with what's going on. It could be once the isolation period is somewhat clearer/over your DP will be able to work for the current company still.

@RJnomore1 Isn't that just for property relating to bankruptcy? Everything else is proceeding as normal for now.

If your pay covers all the bills etc then he doesn't need to earn much to keep you going. Move house and he can get a temporary job in Sainsburys or whatever, they are doing a big recruitment. My ex did that before - he is a graphic designer - just to keep the wolf from the door, he did delivery driving and you'd still be able to buy your house.
He'll be making good money again soon.

We've just had a long chat on the phone (he's still away down Scotland where he was working, just been sent to his accommodation) and I do have my own savings of 5000 and will have money left over that we were planning to use for work on the house, so could use that. He would be happy to find a delivery job or supermarket job to keep us going until he can get back to work and cover the extras, but still concerned they would reject us now due to change in circumstances?

To save losing the house I'd get your husband to find work in a supermarket to tide you over! They're crying out for Staff at the moment and it's better than nothing for a few weeks 🤷

Sorry, major cross post!

@stressandmorestress Don't tell them! You haven't lied and they don't need to know if you know for a fact that you can make the payments. Has the mortgage already been awarded? All done & dusted just awaiting completion?