Redundancy and Remortgage

[CupidStunt24]

Hello,

I am panicking well in advance here; but I just wondered if anyone has been in a similar situation or knows how these things work as I am a born worrier. It was announced yesterday that it is likely I am being made redundant due to business closure. Consultation period began yesterday, with conclusion being on Thursday next week. I am also 17 weeks pregnant. After the initial shock, panic and endless online calculators, I calmed down realising that with notice period, holiday pay and redundancy we can get to Jan when I planned to start maternity leave anyway.

However, my OH has mentioned this morning that we are due to remortgage next December - I will still be on Mat leave but considered "unemployed". My OHs salary has doubled since we got our mortgage and is probably the same as our combined income at the time we took out our mortgage. Is it literally just household earnings they go by, or will the fact that I am unemployed at that point be detrimental? I feel so panicked and worried and it doesn't help that OH just keeps saying "don't worry"...

Sorry to hear this! Well done for getting on top of the implications so early - my DH and I have been fairly ignorant of this stuff until now, but suddenly our remortgaging date is fast approaching and I’ve realised I need to get a handle on it. I think you’d need to declare any change in employment/income? Like, when it happens not just when remortgaging, but happy to be wrong on that. Interested to read more knowledgeable replies. Best of luck 🤞

Would it be worth paying an early redemption penalty and remortgaging now?

Don't panic quite yet!

If you remortgage with your current provider, and don't borrow more, you don't have to go through all the checks again as it counts as a product transfer.
If you want a different provider then they will look at your financial situation and I think both you and your child will count as dependents which might reduce how much you can borrow. You could probably calculate roughly how much that could be if you fill in an AIP with your future circumstances.

Thank you for taking the time to respond! I feel I little easier today, I didn't even think about the option of renewing early, so that's something we could look at however from what I gather the fee will be quite high and I'm not sure we can justify it now. I have also spoken to others that were in similar situations after COVID etc who have also mentioned the product transfer route which all so far have said was relatively straight forward.

Thank you again