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How long after local searches? Think dh may loose his job
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Minimalme · 14/05/2022 17:55

Our sale is ready to go and the local searches are due back on Tuesday for our purchase.

We are porting our mortgage, lenders happy with the valuation on purchase, lots of equity in our sale, small mortgage, all should be fine.

Except that dh may be made redundant next week (sole wage earner, I get DLA x2 and carer allowance).

He is planning to negotiate a pay off on Monday which may cover the mortgage.

But if it doesn't, how long will we have to complete our sale/purchase? He gets a new wage slip on the 25th of this month so I'm thinking he would have until the 25th June?

House sale has to happen and renting is a nightmare at the moment and made worse because we have dogs.

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bellac11 · 14/05/2022 17:59

Have you got a date of exchange?

If he is made redundant is it going to be instant or in a few months time?

How quickly could he get another job?

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Minimalme · 14/05/2022 18:35

Good questions! No exchange date yet - looking online, once the local searches are back, our side raise any further enquiries and then it might be about four + weeks.

Dh only started this role a couple of months ago - large American company, no HR to speak of and their share price has plummeted. We have both only ever work in the public sector so have no idea about 'being paid off' as opposed to the traditional route of being made redundant.

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Minimalme · 14/05/2022 18:37

So probably instant job loss, but maybe he could ask them to pay him another three months instead of a pay off.

Don't have a clue about this sort of thing.

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bellac11 · 14/05/2022 18:39

If he's only been there a few months, is the pay off going to be an amount to pay the mortgage off? Sounds unlikely (although obviously I am assuming that your mortgage will be hundreds of thousands)

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kerosene20 · 14/05/2022 18:41

If he’s redundant he would
have to report this to the lender and see if they will keep the offer in place or withdraw it. Honestly if he’s the sole earner, I can’t see them allowing it? Sorry this a happening.

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HSKAT · 14/05/2022 18:44

Sorry op this will be very stressful.
I'm not entirely sure how it will work. He will have to let lender know.
How would you afford he payments after his money has ran out?
How quick can he get a job?

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Minimalme · 14/05/2022 18:48

We want to port £70k of the mortgage but could cope with less because we are downsizing to pay off debt.

We have been trying to sell since October but our demise has been a long once, since I had to give up work and become a full time carer for one of our son's who is disabled.

I think we are legally obliged to inform our mortgage lender aren't we?

I don't know how quickly he could get another job - he is broken this weekend. He left a really secure job for this because it paid substantially more and we are sinking financially.

I think I may be able to secure the mortgage on my benefits. I get about £1,100 in DLA/Carers allowance.

Once we know more on Monday about the job I'll look into it.

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tribpot · 14/05/2022 18:49

I'm not sure they would even have to offer him a payout after such a short period of employment. He doesn't have full employment rights until he's been there for two years if on a UK contract. Hopefully they will offer something but you may need to think about what to do if they don't.

As your loan to value ratio on the mortgage is low, maybe the lender will be lenient but I'd assume they wouldn't want to proceed.

Sorry this is happening, it sounds incredibly stressful.

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Minimalme · 14/05/2022 18:50

Weirdly, we would be able to pay the mortgage because we are doing a huge downsize.

If all had gone to plan, we would have paid of £50k debt and had another £50k for savings.

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Onlyrainbows · 14/05/2022 18:51

I was made redundant the day we exchanged... It was the most stressful day of my life (and I've had a few). I found a job within 3 months. Never told the mortgage company, but we were never in arrears. So.i thought as long as I pay it, what's the problem? The silver lining was that I doubled my income with my new job.

I was only pay my notice which was spent as gardening leave ( 2 weeks).

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alexdgr8 · 14/05/2022 18:52

i think you mean your decline began...
not your demise.
at least i hope so.
wishing you well.

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bellac11 · 14/05/2022 18:54

I thought you said you were renting?

If you only need 70k for the mortgage, i would keep the debt for now, not worry about having savings and buy outright

Once he has a more secure position you could look to remortgage the new property and pay off the debt (assuming the debt is more expensive than the mortgage rate)

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Minimalme · 14/05/2022 18:56

Thank you all for helping me with your knowledge.

It is a fantastically shit situation. Although I am trying to focus on the positives. Not found any yet, but I'm giving it all I've got Grin

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Unsure33 · 14/05/2022 18:57

If you have your mortgage offer then they won’t know unless you tell them. Depends on how confident you are in paying the mortgage/ securing another job .

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Minimalme · 14/05/2022 18:59

We can't find a rental for love nor money. Recently rule changes mean many landlords are selling up (the place we want to buy has been a let for the last five years) and everyone who sold during the SD holiday and can't find their onward purchase.

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Minimalme · 14/05/2022 19:00

alexdgr8

i think you mean your decline began...
not your demise.
at least i hope so.
wishing you well.

That is the bright side I've been looking for - we are declining not demising and I am very grateful for that!

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bellac11 · 14/05/2022 19:01

I realise I have misunderstood your posts

You own your house but have 70k left on a mortgage whch you want to port over to a cheaper property and once your house is sold you would have had enough to pay off debt and have some savings?

But are saying that if you had to rent it would be a nightmare?

Yes I agree with that if thats what you're saying.

I wouldnt rent, but I would move ahead with the purchase without a mortgage, ths will also speed up the process a lot, then sort the debt and savings issues out later.

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HalfShrunkMoreToGo · 14/05/2022 19:01

If he's only been there a couple of months then he won't be entitled to any redundancy just whatever his contractual notice period is, unless he has a very generous contract that stipulates redundancy payments from day 1.

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Calmdown14 · 14/05/2022 19:03

In your position, I would sit down and calculate the smallest mortgage that will get you into that house. There's no point keeping big savings back and you could remortgage in future.
Or work out if you can move without a mortgage but retain the lowest cost debt. Is it serviceable on your income or will the new mortgage reduce your outgoings substantially?

The fact you are downsizing changes things. Yes legally you should tell your mortgage provider but as he doesn't actually know the details yet, I would avoid doing it for as long as possible.
It sounds like there may be other ways you could complete the purchase but that this way will make your monthly payments the lowest?

Basically it's big piece of paper and calculator time

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MortgageNameChange · 14/05/2022 19:05

I have name changed this for. We found out after we had exchanged I was getting made redundant. We could still afford the payments but would have failed on affordability and as we had exchanged we would be liable for deposits and fees etc..... and would have lost approx 75k if we had time pull out.

We had a stressful time trying to keep it all together and deal with redundancy but we made completion and I got a new job the next month. Yes we should have told the mortgage company and yes it was very wrong what we did but if we had lost that 75k we would have lost our home, all of our equity and savings and been on the bones of our arse for years and years to come.

If you can afford repayments if he loses his job, I would keep quiet, push for completion literally every day and hope and pray for the best. It was a very stressful time I'm not going to lie, but totally worth it.

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Calmdown14 · 14/05/2022 19:10

Actually on reading this again, at the end of the process, if you port the 70k mortgage you already have, you'll be debt free and have 50k in the bank?

In that case I definitely wouldn't tell anyone about the redundancy. Have you already submitted your proof of earnings?
The 50k savings will allow you to pay the mortgage for quite some time so there's no real danger of defaulting and your outgoings will be so much lower that as long as your husband has a job of pretty much any kind you could cope?

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MortgageNameChange · 14/05/2022 19:15

Oh so many typos in my post sorry!

*for this
*to not time

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bellac11 · 14/05/2022 19:16

Calmdown14

Actually on reading this again, at the end of the process, if you port the 70k mortgage you already have, you'll be debt free and have 50k in the bank?

In that case I definitely wouldn't tell anyone about the redundancy. Have you already submitted your proof of earnings?
The 50k savings will allow you to pay the mortgage for quite some time so there's no real danger of defaulting and your outgoings will be so much lower that as long as your husband has a job of pretty much any kind you could cope?

By the sounds of it OP will walk away from her house sale and the new house purchase with enough to be mortgage free

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AReallyUsefulEngine · 14/05/2022 19:18

Completely irrelevant to the point of your thread but have you checked to see if you are eligible for UC? When there are multiple DC in receipt of DLA the maximum income threshold is a lot higher than many think.

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KarrotKake · 14/05/2022 19:34

Talking to our estate agent, after searches are enquiries, and if all that is ok, sorting a date for exchange.
They were talking a couple of weeks for each (searches back in around a month).
We are trying to stretch it out a bit, as we don't want to move before the end of the school year (and cant sell ours anyway, but can keep both houses for a while). Think its moving a bit fast, and is going to be quicker than the estimated 12-16 weeks.

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