What to do next?

Tiger_greeneyes

My husband-to-be has just been made redundant today. We're getting married next week :mad:

We're just about to exchange contracts on our new house - we have to move out of our rented flat. We don't have any choice but to carry on with our purchase because we'll be homeless in a few weeks if we don't. The mortgage repayments are £250 and our rent is £500 per month and we'd lose £1,500 if we pull out now.

We've got the house for a brilliant price - £133k it was valued at £200k at the top of the market. As it's a bungalow, I can't see it dropping much further, considering the credit crunch has been estimated to last around 12 months or so.

Once we've moved, we'll be able to stay afloat for a maximum of 3 months before our savings are gone.

I can't work at the moment due to poor health - that and the fact I'm the carer to my mum and her husband, I wouldn't have time to work even if I could. My husband is more than willing to take on a career change if necessary. He has a strong work ethic and is very employable.

Would anyone else take the risk of proceeding with the house move?

I'm seriously stressed.

Is there anyone out there with words of wisdom or who can point us towards a work from home job? Or anything?

pawpurrs

Sorry to hear this, difficult one, as our mortgage will be a lot less than your rent.
Really you should be telling your mortgage company, as your circumstances have changed, and if you do they will not lend to you.
Its a decision only you can make, do you think he will get another job quickly? As the mortgage is so low, surley if needs must he could shelf stack/xmas temp to pay the bills?

poppysarah

Your mortgage application won't be valid surely? And as for losing 1500 now - you could lose a lot more if he can't get another job.

What did houses go for on the street several years ago?

Low paid work is easy to get - but getting a good job quickly enough might not be.

Can you live with your parents/relatives/friends if you are potentially homeless?

Kez100

If your mortgage is only 250 you must have a lot of savings towards the purchase. If your mortgage application isn't valid now and you have to pull out, the interest on your savings will help toward to rent, won't it?

No, I wouldn't proceed as I would tell the mortgage company about the change in circumstances. I would be scared that otherwise I would exchange and then they would find out and pull the agreement between exchange and completion, leaving me in breach of contract and with at the very least a lost deposit.

guppy

Keep on renting for another six months, watch the house prices fall further, and then get another mortgage offer once OH has a job. That way you need not risk lying, and may save more money overall anyway.

Hopefully the situation regarding mortages may improve as the gvt put pressure on banks too.

PasturesNew

You have to tell your mortgage lender, there's a line in the agreement you signed that said you have to inform them of a change in circumstances - and what if they double check the day before you move in then pull the mortgage from under your feet? You could lose more.

£133k with no job isn't doable.

Even if he spots a proper job the minute you come back from your honeymoon, by the time he's applied, been interviewed, been offered it, started the job - then worked for a month before being paid ... it could be 3 months without money coming in.

I think it'd be easier all round and a better start to your married life if you let the house go. It'll be hard, but not as hard as losing the house and the hardships you'll go through in the coming months.

Home is where the heart is. Put your energies into a great wedding, super honeymoon, then great Xmas without the fear of losing your home.

Tiger_greeneyes

Thanks for all the advice, it's much appreciated. As it is, we're not going on honeymoon, we're saving up for a few days in Scotland next year. Sir's applied for a couple of jobs already, we could trot along for a few days and see how it goes. If he gets one of the jobs then it's panic over. I think we'd be mad to exchange contracts with no job in sight. I suppose it then comes down to how fine the small print is regarding changes in circumstances. Technically speaking he'd have been made redundant and gained another (better paid, in fact) job. But he'd have had a job when he applied and he'd have had a job when we exchanged. I can't see it would be something we'd need to inform them of because we'd be able to cover the mortgage more than adequately. Or am I barking up the wrong tree?

PropertyPro

I'm no mortgage expert, but I think that mortgage companies may take the time spent in a job into consideration before issuing funds.

Please do not exchange before you are sure that OH has another job sorted out. If this happens in the short term, call the mortgage company and make sure they will continue with the original agreement. If they decline, then let the selling agent know the situation - Hopefully, the vendor(s) will help out by giving you time to sort things out.

As the earlier reply mentioned, it may be worth seeing if you could stay with family for a while until things are clearer.

Cat695

Kez100 wrote: »

If your mortgage is only 250 you must have a lot of savings towards the purchase. If your mortgage application isn't valid now and you have to pull out, the interest on your savings will help toward to rent, won't it?

The way I read it their mortgage will be 250 AND rent of 500(one of those rip off shared owner ship schemes).....maybe the OP could clarify this? as I maybe wrong

poppysarah

Cat695 wrote: »

The way I read it their mortgage will be 250 AND rent of 500(one of those rip off shared owner ship schemes).....maybe the OP could clarify this? as I maybe wrong

Well if thats the case pulling out and only wasting 1500 is the best thing all round. Insane otherwise.

Tiger_greeneyes

Cat695 wrote: »

The way I read it their mortgage will be 250 AND rent of 500(one of those rip off shared owner ship schemes).....maybe the OP could clarify this? as I maybe wrong

Sorry, that was a little ambiguous, it made sense when I wrote it! The mortgage will be costing us half of what our rent is currently. We've got a healthy deposit as we sold our house in January to relocate from Suffolk to Gloucestershire and rented a flat short term while we found our ideal house. As we were renovating our house in Suffolk, our belongings were all in boxes - we've been living out of boxes for 3 years now, it was pretty much our dream to get married, move in and actually unpack everything and settle down for a few years. It's very frustrating.

Yesterday we were clutching at any straw we could get hold of. Today we know that we've got to start making phone calls. I'm hoping the landlord hasn't re-let our flat to anyone - we handed in our notice a few weeks back. He did say that his friend is interested in renting it.

Right, better start picking up the pieces I suppose

Thanks for all your replies, it's much appreciated x