Job at Risk of Redundancy - can I still apply for a Mortgage?

mookow

Hi

My firm announced yesterday that they making redundancies and are now in the consultation phase. My job is one that is possibly at risk. The problem I have is that we are halfway through selling our house, and have found a house that we want. Can I still apply for a mortgage even though I know that my job is potentially at risk? (Obviously if I did get made redundant, would obviously pull out of the purchase! - although we have decided that we will still go ahead with our sale and 'camp' at mother-in-law's until we get sorted out!)



Thanks

betmunch

You can apply.......

Obviously its down to the lender to decide if they want to risk their money on you. You would need to disclose the fact you are in consultation if the application asks.

Also some applications will ask if there is anything else they should know to make a decision on you, I would include it in there.

I would put everything on hold until the redundancy issue is sorted though. If you get made redundant you can stay where you are and claim on your redundancy insurance. If you dont get made redundant you can happily proceed with the mortgage application without worrying about it.

Cheers

Fliss_M

I would continue with the sale and wait to buy till you know the outcome. As if you put on an application your in the consultation process, I would be surprised they would give you a mortgage and it would be a denied mortgage to your name, not good for your credit score for a later purchase.

koexelek

Virtually no lender will ask if you are under the threat of redundancy, they just ask if you are in permanent employment.

However, I do agree that it would be unwise to take on a new mortgage commitment if you are unsure about the security of your job.

If you don't currently have unemployment cover, you definitely won't be able to apply for that no, as all the insurance companies will definitely ask if you are under threat of redundancy