Some Advice Please!

muskoka

Would you be prepared to let a room out if you needed to for additional income.

dander

Sammy85 wrote: »

Dont forget that if you know that redundancy is on the cards and you take a mortgage without declaring this you could be commiting fraud.

But in this case redundancy isn't actually "on the cards". In this case the OP currently has a permanent position with an employer and they are not under notice of redundancy, there is just an inability to promise that there won't be cuts in the future. I would think very few of us work for employers that could catagorically promise that there won't be cuts in the next few years.

There's absolutely nothing here that would have to be declared in a mortgage application, it's just a "what if" that the OP is right to bear in mind for planning their own future.

Fire_Fox

kira2009 wrote: »

Hi All,
I am in the process of buying my first house. Its a council right to buy, 3 bedroom. I put the application in when the market was low and they knocked a furthur 8 thousond off for repairs. They have offered it to me for 66 thousond. Its worth 100 thousond. :j

I have a deposit to put down and everything was looking good until i heard about redunduncies in the council. I work for the council and was told job are safe for this year but they are not sure about the next 2 -3 years after. :mad:

Its only me buying the house, So if made redundant in the next few years what happens?!? Is this too risky? i need some advice.

I am assuming the house will be in your name as you say it is your family home? Does anyone else like in the house with you? Tim_n's comments about finding a buyer in this market are largely irrelevant as you cannot sell and pocket the difference in the first five years after right to buy anyway.

How much redundancy would you be entitled to? More than £16K in 'savings' and your entitlement to a range of means-tested benefits are reduced or eliminated. If you think you may be made redundant at any point I would suggest spending your savings on the repairs needed to the house. You cannot spend money after you have been informed of redundancy without risking the 'deprivation of capital' ruling so you may wish to read up on this.

I would suggest you are not tempted to run up any debts - no overdrafts or credit card, no car finance or home improvement loans - you cannot pay these off with your redundancy money and you cannot offset your savings against your debts. Having only benefits coming in but debt repayments going out is the way a lot of people on the Debt-free Wannabe board have got into trouble.

If you do get made redundant you may be entitled to a range of benefits, including Support for Mortgage Interest which doesn't kick in for the first three months of unemployment. This would presumably not be a problem for you as your redundancy payment would be guaranteed and paid out quickly? This is a means tested benefit so you won't be entitled if you have over £16K in the bank.
http://www.jobcentreplus.gov.uk/JCP/Customers/WorkingAgeBenefits/Dev_016128.xml.html

Please note the only reason I am suggesting NOT leaving yourself with a float of cash as I would normally is that your employer is not going to shaft you over your last month's pay and redundancy money. It would be wise to maintain your property so that you have the opportunity to let one of more rooms in the house to increase your income, should state benefits not be sufficient or you not find another job quickly. You might consider taking in lodgers as soon as you buy the property and using the extra income to get the house up to scratch or to overpay your mortgage, you would need a flexible mortgage to allow this.

Nosht

Sammy85 wrote: »

Dont forget that if you know that redundancy is on the cards and you take a mortgage without declaring this you could be commiting fraud.

Not so.
Talk of redundancy is NOT redundancy so there is NO fraud involved.
Insurance is very costly & only available for a short period if you qualify, look at the terms & conditions & the small print.

Regards,

N.

kira2009

Im glad to here im not comitting fraud, that worried me a bit!

In response to Fire Fox, 16k is the deposit for the morgage. I would not have this in savings after purchasing the house. I will look into the 'deprivation of capital' anyway to see whats it all about.

I have also made sure i have no debts. If i cant pay for it, i dont have it! and its worked so far.

Thanks for all the help

K x