Redundancy and mortgage

[Kitchencomposter]

Helloo there,

50 years old, just in the middle of applying or a mortgage, and going to be made redundant. I can't believe that this has come now.. . waited years to get our own home and then this!

What are next steps - we don't want to lose the house. DH not in a well paid job. We would just about survive on one salary but main concern is not losing the house if we have to tell lender about the situation. Offer won't come through until after I'm gone.

Help?

Oh this is horrible

Can you get another job? Will you get a payout you can use to reduce the amount you need to borrow?

You have to notify the mortgage company surely, as it is a change to circs.

I was advised by my broker that I would have to notify as soon as my job was put at risk.

A minimal payout.

Another job.. at my age.. lord only knows I can try but how long is a piece of string!

Mortgage offer likely to come through in 2 - 6 weeks.

Terrified we're going to lose the house - you have no idea of the insecurity we're going through renting and other factors that will be affected if we can't buy - and it's just a low end double figure mortgage we need. Devastated.

Sitting here wondering what relatives I can ask and then thank god.. pride hits in!

This is only temporary, your situation will change. I was made redundant last year, was hard but we got by. Good luck 💐

There are lots of job vacancies at the moment. Don't be fussy and apply for anything even vaguely suitable. Do not sign for the mortgage until you have a new firm job offer, you could lose a lot of money if you try to withhold vital info from the mortgage company but if you are just changing jobs that might not have much effect.

Will your DH's salary be enough to get the mortgage you want even if things are going to be tight? If so, go ahead anyway.
If you will get any sort of payout you might be able to reduce the amount of mortgage that you need too.
Start applying for other jobs straightaway, there are jobs out there. If you're in a notice period you're entitled to a small amount of time off to look for another job. www.gov.uk/redundancy-your-rights/suitable-alternative-employment
Wishing you lots of luck

@User3456 - payout will be statutory and minimal - will hardly make a difference to mortgage, even though mortgage is very small. At this stage I haven't spoken to our lender yet, but I will later today, so I'm not sure how we stand. On paper we might literally scrape by - but lender will probably consider us a risk.

If we do lose the house then at our age that's going to be devastating. It's bad at any time but for our circumstances, this is a particularly bad time for this to be happening.

Yes, I'll have to start looking elsewhere.

I’m sorry this is happening to you OP. Unfortunately you MUST inform your lender of your change in circumstances but you could probably wait a few weeks until things are clearer for you.

Do not exchange on this property unless you have had confirmation from your lender that whatever new role you have got is suitable for their lending criteria, you stand to lose a lot of money if you do.

Unfortunately you may have to say goodbye to this particular house as some lenders are not happy to lend on new roles if there is a probation period. I know this is not what you want to hear.

Your next steps are to, within the next few weeks, to do tour utmost to secure a new position, inform your lender that your role has changed and cross your fingers that they are still happy to lend you the money.

If you can afford the mortgage payments then personally I'd blag it.

Have you got a broker or are you applying direct?

If the latter, I'd recommend finding a good broker who can advise and find mortgage options for people considered "higher risk".

Low end double figures? How low is low? 20k is getting into personal loan territory....
You need to tell the mortgage people. If you are going to be unable to proceed, it is better to know now rather than after you have spent more money.

I hope it all works out for you.

@MaizeAmaze

Low end double figures? How low is low? 20k is getting into personal loan territory.... You need to tell the mortgage people. If you are going to be unable to proceed, it is better to know now rather than after you have spent more money.

I hope it all works out for you.

Yeah I know, and I've contacted a company today about cost of 20k on a personal loan. I agree.. better to sort out now than at a later date. Just waiting to see what happens during the next week ref the redundancy and then we'll contact our mortgage adviser and see what he suggests.

I've been offered another role but it's entirely impractical and therefore unsuitable. Is it best to tell the company this now, before the second consultation?

I think I'd hold off notifying until you know your options.
Is the impractical job worth doing even for a short period to get you past this stage?
What figure are you borrowing and what's the LTV? If it's low then a broker may find other options.
Don't give up hope yet

Take the unsuitable job so you can keep the mortgage then quit or look for something else once you have moved? You'll lose the redundancy money but if it's not loads then worth it.

@Calmdown14

I think I'd hold off notifying until you know your options. Is the impractical job worth doing even for a short period to get you past this stage? What figure are you borrowing and what's the LTV? If it's low then a broker may find other options. Don't give up hope yet

Yes, we're going to hold off telling our mortgage broker until things are a little clearer next week.

Not at all.. there would be an interview process and to be honest I think it's just a formality for them to provide the option. It's impractical because it would mean relocation for my family.
We just want to borrow 20k.