Applying For Mortgage

xBuNn

Hi MSE

I am in the process of applying for a first time buyers mortgage at present. I have had an AIP for some time now, and im in the process of putting in an offer on a house. I've just been told an acceptable figure from the estate agent which im happy to pay, however the other day at work we got some news which may hinder a full mortgage application. I've two jobs with a combined income of approx 15k.

We have been told that redunancy will be happening from Q2 2011. This is only indicative and could be changed to Q3 or Q4 of 2011 depending on business requirements. Now this doesn't help me in any way at all, i would rather be made redunant and leave the company the same day, than it effect a mortgage application for another 6months+.

How would a mortgage broker see this if I was to go for an application? I would be putting down a deposit of around 20-25% of the property value. I have no debt and a completely perfect clean credit file.


Thanks,
Chris

dwsjarcmcd

Sorry but if you know your getting made redundant you won't get a mortgage and you won't get unemployment insurance to protect you, when that happens.

If you are part of a wider selection process, you may still not get a loan but you certainly won't get unemployent insurance. If the worst was to happen, you need to consider how you would make the monthly repayments (and the other committments that come with home ownership) if you did get a mortgage but with much less income.

dmg24

I agree with dwsjarcmcd, now you are under notice of redundancy no bank will give you a mortgage, and even if you took out unemployment cover they would be very unlikely to pay out. I think if you commit to buying a house now it would leave you in one hell of a mess in the long run.

bluecelticgirl

If you are willing to take the risk of having a mortgage and no job why would you tell the mortgage broker and how would they find out? Wouldn't they normally just get payslips from you to prove your income? I did work in lending but in another country and we would only have taken payslips to prove income. I did actually get a mortgage once while I was on a temporary contract but didn't tell the lender that as payslips didn't show it was only temporary and I had no probs

getmore4less

We all take the risk when taking on bebt that we become dependant on income to pay the debt

When that risk is increased with the knowledge that income is likely to be an issue the sensible thing to do is review the risk.

How long could you last with no income, how big is the emergency fund and redundancy package etc.

The first mile stone if made redundant is 6months when JSA runs out, can you last that long, next could you last a year(that would be my minimum).