Job changing - mortgage advice needed please

irishkeet

Hi all

I'm hoping someone can advise me on my situation.
I’ve been in my job for 6 yrs and I’m being made redundant on 31 of December 2006

My mortgage with the Abbey is up in June 2007

Currently I owe £140,000, I’m on a tracker that’s +0.64 above the base rate (currently 5.14) and it will cost me about £1800 to leave for another mortgage.

I’m currently retraining and will only be working part time from Jan 2007, I have enough savings to pay my mortgage for about two years (working pt) by which time i will qualify as a counsellor.

My question is should I move to a better mortgage before my job ends as this may prove to be difficult when I’m a part timer?

The Abbey told me that when my mortgage is up in June 2007 there will be a £75 fee to move to a new rate with them and this can be a tracker or a fixed and that they don’t need to know what I’m earning.

Many thanks in advance for all advise

Regards

Keet

Emmzi

Irish,

any new lender really ought to be told of impending redundancy - otherwise can claim fraud if it all goes wrong, if you are presenting as being in confirmed employment for mortgage duration.

There may be some lenders who are comfortable with your position, but I think you need to be honest.

irishkeet

up up up up up up

homer_j_3

I agree with the fact that if you know your income is going to change then you have a moral and legal obligation to be honest.

I am guessing that the abbey will not be able to give you the details for the retention products so it is hard to say how competetive they will be.

If you were to decide to ommit the fact of pending redundancy and I try to obtain a new deal before the redundancy then I think you have to weigh up the savings you can make. I am not saying you should do this but just as a "if you decide to ignore the advice" you should be aware of this kind of thing..

Over a 2 year deal you would have to save 900 per year off your current payments - which after all your exit fees, remortgage fees for setting up the new mortgage, you may need to save even more off your monthly payment.

To be honest, I think you may find it best to get yourself on the fixed rate retention product so you can budget for your retraining period. Clearly you will need to review the situation nearer the time when you know what interest rates are doing.