Redundancy - at the worst time!

angelcatcher

Hey all, this might be a bit of a simple question but I've started to go numb with fright over something which has just occured to me.
As of 10am yesterday, I was taken into the office at work and told that as the amount of work had slowed down, they were letting me go.
Initially I was concerned but not too concerned as I had been saving very hard actually to pay a lump sum off the mortgage so had funds available.
Now it comes to me that the mortgage is up for re-newal in March so I should be looking next month for better deals, but I am now concerned that if I can't find employment VERY quickly, will this prevent me getting another deal?
My personal situation is that I am a 23 year old, single girl so am entitled to NOTHING other than JSA from the government as I am under 25, and I have roughly £7,000 saved up.
I'm now thinking no matter how much is saved, I'm not going to get another mortgage deal. Is that right?
I have a personal financial advisor, but he isn't available till next week.

fozzeh

My wife spoke to Nationwide yesterday and she said that if you're due for redundancy, they will write to your current employer and ask how likely it is for the person to be redeployed or how employable the person is. They then make a decision based on that.

Not sure if this applies to all mortgage lenders or applications, but could be an idea to find out from them.

Did you ask your employed whether it was just you being let go or other people...or was it not worth fighting?

firesidemaid

did you know that with many lenders you can apply for/secure a new mortgage deal up to 6 months before your current one expires?

well done for you on saving - if need be you good go interest-only if you did need it.

also, what kind of deal are you on re. mortgage? it is liekly that when your deal ends it will just transfer to the standard variable rate which is likely to be quite low at the moment and won't cost you anything to transfer to - that might be your best option anyway.

jdturk

i know its bad but maybe have a look at a thread a few down about the OP who is being made redundant after being on maternity leave and being diagnosed with cancer... I suspect she would rather have your problem than hers (I could be wrong obviously).

this isn't a snipe but a comment to make you realise that in the end of the day its money and whatever happens you'll get through it.

angelcatcher

Fozzeh, that option I'll have to look into too.
As to whether I would be taken back on or not, at the moment I'm not sure. They had said a while back they wanted to downsize the workforce and gave 3 months notice to the people deffinately going. I wasn't one of them and thought I was safe - I stand corrected. As I knew people were going, I don't think I can fight it in any way as it looks like the money just isn't there in the company.

Dang it Firesidemaid, I wish I had known that and re-newed when I could! I still feel new to this type of thing and depend quite heavily on advice given. I was on a fixed rate and I'm nervous at loosing that (even with rates so low) as I know things can just as easily go back up. I'll just have to see how this pans out.

jdturk, I totally understand what you are saying that everyones' situatuon is different to various degrees. I would hate to be in the situation you mentioned I admit - that is a horrible position to be in. This is my first home that I had to fight for initially and fear any attempt to make this difficult from external sources. I am doing this alone and have been proud of how I managed it. Other than myself, I have no other financial support as redundancy has also hit parts of the family hard too. But they're older and are partnered or married to other people to take off the money type worries and so have managed to get through it.
Yes things could be worse I know and accept that. It's just the uncertainty of the situation when it hits you personally that staggers a person.

ceridwen

Well...first off Angelcatcher.....you have one thing going for you = you are a very capable person. To have a home of your own already at 23 years old - and in this economic climate - means you are one heck of a good one at managing money:T A lot of perfectly capable people some years older than you wouldnt have managed to get one - but YOU have at YOUR age....boy thats some financial nous:D

Second thought - your savings are only £1,000 over the limit that DWP allows for benefit purposes - annoying - but not THAT much over the £6,000 allowed once it comes to being on means-tested benefit (which is just over 6 months down the line from the start of unemployment - so hopefully you wont be unemployed for that long and those capital restrictions wont start to apply to you). The first 6 months of benefit is non means-tested (assuming you have paid enough NI stamps over the last couple of years or so). Once they do start means-testing (IF the unemployment lasts that long) then I think its a maximum of £40 per week?? that they are allowed to deduct from the "surplus" savings - b****y annoying - but it wouldnt amount to very much money overall.