Getting a mortgage while possibly being made redundant.

moneysavinmonkey

I think if you read the fine print of the mortgage it will say that you need to keep them informed of change in your employment circumstances.

Applying for a mortgage based on your current income, knowing that this income is about to stop would technically be fraud. Whether the mortgage company would turn a blind eye to this as long as you kept up the repayments I don't know. In the current climate banks are acting particularly stringent about anything to do with lending so I personally wouldn't take the chance.

You say that the house isn't ready until April 2009, so is it possible to wait to purchase until the house is ready to move into to? By then you should have a new job and less worries about getting a mortgage. You might even be able to negotiate the price even lower, if the 2009 spring bounce hasn't happened! If you don't have a job by April then you can reassess.

If you are really bothered about this particularly house then ask the developer if you can put down some kind of holding deposit (refundable) - but don't commit yourself completing the sale and make sure that there is some kind of time limit on that deposit so that if the builder for whatever reason doesn't complete the house on time then you can get your money back asap.

_Andy_

So you want to buy a new build, in a falling market, commit fraud, risk losing your home if you don't get a job, but don't want to hear people's negative responses to your query?
Great, nice one.

silvercar

dean_ham wrote: »

Ha ha, lets be honest though its not as if im buying this house at top whack is it??? so dont be so sarky with me!

Mortgage payment will be £490 a month, i will have a lodger in a room paying roughly £400 a month.

This leaves me to pay the remaining £90 of the mortgage a month + roughly £300 in bills.

At the end of the day I NEED SOMEWHERE TO LIVE! ok my situation is not ideal as i dont know if i have a job in 2 weeks time. But i think the positives outweigh the negatives.

With that information, if you said to me that the house was built and that you could move in two weeks time I would say go for it. You've dome your calculations, have some savings and presumeably could work at macdonalds if you couldn't find another job.

Now that you've said that the house won't be built until April I have two concerns.

Firstly, if you do lose your job before mortgage completion then you have to declare this to the lender. That means your mortgage offer will be withdrawn and you will have real problems, having already exchanged contracts.

The other problem is that builders are slow in completing developments, April could soon become September. At which point you have to consider what your house will be worth. The great bargain may not be so good then and the mortgage available may be smaller. You can say that you would still be able to pay the mortgage, but the question will be whether anyone will give you the mortgage.

downs523

go for it mate, if its 490 per month and you are having a lodger pay 400 whats the problem, u have sufficient savings and a large redundancy package if your job does go. whats the problem, house is a bargin btw, where abouts is this?

strawberries1

So what did you do OP?
I'm considering taking a FTB M too with possible redundancy looming. I might go contracting for a while after redundancy and I think lenders prefer perm employment. Have 25% dep.

Bullfighter

dean_ham wrote: »

Look not being funny im putting a 25% deposit down, its not as if im taking out a 100% or even 125% like the past.

Tell you what ill carry on paying £450 a month rent for the rest of my life for a 3 bed terraced that i will never own. Or try and get a £490 a month mortgage on a 4 bed detatched house that will be mine in 25 years.

If you can get a 25 year fixed mortgage "for the rest of my life" at £490 go for it.

maninthestreet

Looks like he bought the house:

https://forums.moneysavingexpert.com/discussion/1658563=

strawberries1

I see. Ta!