Remortgage while unemployed

Stantheman

I was recently made redundant and have not yet found any work. Hopefully I should get some soon but if I dont Im a bit worried as my fixed rate deal ends in January. Am I right in saying that my mortgage will just revert to the banks standard rate and subsequently I'll be able to continue payments without making a new application. I ask this because Im obviously concerened that I would be turned down for a new mortgage as I have no income.

As an aside would it be possible to get a new deal with another bank whilst unemployed? I have over 50% equity in my home and no other debt.

_Andy_

You have three options

1) Stay with current lender on their SVR
2) Stay with current lender but on a new deal (fixed, tracker, etc) - if you do this your employment situation isn't a problem as they won't re-underwrite the application.
3) Wait until you have a new job and remortgage with another company.

~Beanie~

You should be able to get a new deal with your existing lender. I've just come off a fixed rate with Halifax and taken out another, they didn't even mention my employment status (which is different to when I took out the original mortgage).

Stantheman

Thanks thats what I wanted to hear. Not to worried about the employment situation but was worried about getting a new mortgage in January is still unemployed. As long as I can go on my banks SVR Im happy.

rob50420

Hi,
I'm in a similar position to stantheman and hope someone can advise on if there's a way for me to proceed...
A house i've been interested in moving too has just been offered to me, it's not on the market, its been empty for seven years and i've expressed interest in buying for four years.

The problem is, I was made redundant at the end of august and am currently unemployed and the only income I have coming in is jobseekers allowance I would be buying the house with my girlfriend who has just sold her house and has £30k equity. If I was to sell my house, at a very conservative estimate, I'd have £40k equity. The house has been offered to us for £115k. My current mortgage is for £70k, and we are both with the halifax.
My girlfriend has just started a new job but at the moment also has no money coming in as her employer is waiting for a crb check, which apparently takes between eight and ten weeks to complete!!! so far its been eight weeks so hopefully wont be much longer for her.

can anyone give us advice on how best to proceed. If you need more info, i'll supply what i can.
any advice is appreciated.

Mrs_Bumble

If you haven't got an income then you can't proceed, all lenders require that you have an income in place.

Is your girlfriend's new job on a probationery period?

Would her income carry the amount required on a mortgage? Don't quite understand why she isn't being paid for the work carried out even if a CRB is required, she should still be paid.

Do you have any other credit committments.

What is the market value of the property?

rob50420

Hi Mrs Bumble, thanks for the reply.
The new job isnt probationary, and although she's employed, she doesnt/cant work any hours until the crb check is completed (she works, or will work with vunerable elderly people).

neither of us have any credit commitments, no loans or debts. and the market value of the property is between £105 - £115 ( we have had the house valued by friends who are estate agents)

cheers

rob50420

would it be an option to mortage for the same amount £70k, this time in both our names, and using the equity from both of our houses to pay the £45k difference?

rob50420

sorry, forgot to add that my girlfriends wage will, when the crb check is complete, meet the payments for a £70k mortgage

Mrs_Bumble

Well if both sales are going to have completed before you purchase the new one I would recommend putting as much down as you can.

But if your girlfriends income will cover the £70K then no reason why you couldn't put an application in for the whole amount, but then if you are going to later pay a lump sum off then you will need to make sure the product allows it. My advice would be to contact a good, local, whole of market, independent mortgage broker because it is a little complex

You need a lender that will allow 2 applicants and one income without penalising the affordability.
They can ensure that whatever product you pick will allow the lump sum repayment etc
You are going to also need a lender that is happy that your girlfriend has only just started employment as some have minimum length of service periods

So you need to be able to put all together really, but on the face of it, it should be manageable.

rob50420

Thank you Mrs Bumble, your reply is much appreciated.