Moving house, suddenly unemployed . . . HELP!

captain_pigsfly

We put our house on the market in May to downsize and realise some equity (and clear some debts). Due to complete our sale next week, but main bread winner was made redundant on 30 July, so we are finding it impossible to source a new mortgage for our new house (approximately 60% of total). We have a good credit rating currently, but don't know where to turn. Any ideas? Thank you for reading - I'm back on the St Johns Wort!!!

MortgageMamma

Hello, can you post some figures. re purchase prices, deposits, your earnings etc and I will try to help

captain_pigsfly

Hi, MortgageMamma - buying at £290K, deposit approx £50K. My earnings (became self-employed 18 months ago) are circa £18K pa, and husband was on £55K plus bonuses. Hopefully he'll soon be employed again, however he did get payoff, which is not included in deposit as will be needed to act as salary until he gets a job (equivalent to around 10 months after tax). Hope this helps - offline 'til teatime now, but will check back then. Your assistance is hugely appreciated!

MortgageMamma

Have you exchanged contracts for the sale of your house? There is no way you will get a 240k mortgage off an income of 18k unfortunately. What stage in the buying process are you at? Is your husband doing temporary work to tide you over? How much was the payoff?

captain_pigsfly

Husband here now - pay-off was equivalent to a years salary, net of tax. We exchange on our property on Friday and complete on 1st Sept. We have short term accommodation sorted out but don't want to lose out on the house we want to buy and need to get a mortgage asap. The current mortgage is portable but I have to set it up as a new loan and lack of a job is a stumbling block.

MortgageMamma

Hmm I just don;t know how you can do this, even if you used your 55k and looked for an 180k mortgage you would still be looking at 10 x salary for your wife which no lender will consider. Are you doing any temporary work during your period of unemployment? if so you could think about self certifying and including that, but thats the only way I can think of around it, unless you knew someone else who was prepared to go on the mortgage with your wife as a temporary measure, such as a parent or good family friend

silvercar

I'm slightly confused. if you have already exchanged I would have thought you would already have a mortgage offer. That being the case what is stopping you completing on the agreed date?

There are severe financial penalties for not completing and the hassle you will cause the whole chain if you don't complete. As well as the fact your moving to sort out your own finances, I would go ahead with the mortgage offer you (hopefully) had before exchange.

OK technically you should let them know about a change in circumstances, but really your pay off will provide your salary for the next 10 months by which time the job situation should be sorted, so you won't have any big financial implications for at least 6 months.

I would keep quiet and continue on the previous plans.

MortgageMamma

I'm glad you said that, not me!