Get a mortgage or take redundancy ??

Borfnog

Hi Everyone, this is my first post. Apologies If this si the wrong area to ask such a question.

I just really need some advice on what to do for 2010. I am 32 yrs old, married with two children currently renting a 3 bed at £850 per month. I hate renting with a passion but it has been the only option for us at the moment. I have had a stable IT job for 12 years until now where I was told I am to be made redundant next year. This would provide 3 months gardening leave until September and a redundancy pay-off.

The advantage is to take the plunge and start a business, with the time off and redundancy pay as help. The disadvantage is that we were planning to get a mortgage in 2010 and now I don't think we're able to as the bank wont give us the money knowing ill be made redundant.

I could also choose to stay on by trying to take another job here (my colleague wants to take voluntary redundancy). That will provide security and allow us to get a mortage but I will be stuck in my 9-5 job!!

I really don't know what to do and I need some financial advice. I'm torn and it's getting me quite depressed. Should I be signing up for a hefty mortgage at 32 ? SHould I just carry on renting and try and start a business which 'could' be successful ? has anyone ever saved money to by a house outright ?

Please if anyone can offer some advice on my situation I would be very grateful. I have no one else to talk to.

Thank you

N

dimbo61

You cant fill in a mortgage application form and not tell the lender that you might be made redundant in 2010 thats FRAUD
If you do tell them then you wont get the mortgage.
Why cant you start you new a new buisness now and work nights/weekends and build up the company and save/save/save for a deposit.
What is the other job you are being offered and does it mean a pay cut ( you might enjoy the new role !)
You have a 12 year history with the same employer and if you want to buy a property you need to start soon.
Lots of people doing jobs that are 9-5
I have the pleasure of working nights /weekends and xmas day
Want a swap ?

Borfnog

Dimbo, thanks for your response.


I could try and start the business off in evenings and weekends now in runup to getting made redundant. That was my plan. However that still leaves the fact that banks will no longer want to lend me any money as a) someone who will be made redundant and, afterwards b) a self employed businessman.

The other job I could take is my team leaders job. He is dying for redundancy but it wasnt offered to him. I could take his job. I would be doing pretty much the same work for the same money. The advantage would be I can get a mortgage, the disadvantage would be I miss out on the 3 months 'Gardening' leave and redundancy payoff (approx £20.000).

My ideal situation is to take redundancy, start a hugely successful business and buy a house without even having to get a mortgage


Regards,
N

dimbo61

If you can get the buisness up and running and also get the team leaders job there may be more redundancies in the future after you have a mortgage and making a good living off your new buisness ( and no lies )