Will redundancy affect remortgage?

Sportbilly_2

I'm currently in the middle of a joint remortgage to the Post Office. We've been approved in principle, submitted the full application and will have a valuation on Wednesday.

On Friday I was told that my job role was disappearing as part of site cost cutting. I have a choice of applying for other (not very attractive) positions within the company or opting for redundancy, and I have to decide by next Friday.

If I were to opt for redundancy, would it affect the remortgage, and do I have to inform the lenders? The redundancy package would be about 6 months salary, and my wife would probably get the mortgage by herself without me taken into account. Any advice greatly appreciated.

Cazza

Hi! You definitely have to tell the lender if you have been formally notified that you are being made redundant or if you have chosen to take voluntary redundancy.

Depending on your circumstances, it could affect your application. You would need to ask them to reassess the application, still in joint names but based on your wife's sole income and see what they say.

There is no harm in calling them next week to ask what the chances are of it going through on just you wife's income, in order to help you make a decision about which of the two options you go for - just stress that you haven't made a decision and that you don't want to change any material details of the application YET. Good luck X

Sportbilly_2

Thanks very much for that, Cazza. The redundancy option's attractive as I know I'd just be looking for other jobs anyway if I take one of the positions on offer. The remortgage is much more important, though and would definitely come before me being bored at work for a few months while I try and find something else. If they'd only waited a few more weeks to spring this...