Mortgage Application After Redundancy

sparkins1972

Hello there - hope somebody out there can shed some light on my current situation.

I have recently accepted voluntary redundancy from my current employer and my plan is to move back into my family business to work with my dad. I will put the rest in bullets so it is easier to read:

1. Moving to the family business requires me to relocate, so I have accepted an offer on my current house which will leave me with 110k equity
2. I am very interested in another property for 200k so I would be looking for a mortgage of 90k = 45% LTV
3. My redundancy completes on October 20th at which point I will move directly to employment in my family business
4. My wife is in employment with a salary of 25k, but she has a BTL mortgage of 700 per month on a flat which is currently let

So my questions are:

1. Will any mortgage lender be likely to provide the mortgage given my circumstances?
2. Are there any tactics I could take to make this more likely?
3. Would any kind of guarantor arrangement be possible in lieu of proof of future income?
4. would a copy of an employment contract from my family business help?

thanks in advance for any assistance anyone can offer

dwsjarcmcd

It seems to me that you are essentially movng from one employer to another. Assuming your salary (and that of your wife) can support the loan, there shouldn't be an issue. All you probably need to be aware of is that the lender will probably not fund the loan until 3 or 6 months employment history has been completed. I am assuming that there is no probationary period given it is a family business but if there is they would not lend until that had been completed.

sparkins1972

Thanks for the quick response - affordability shouldn't be an issue - joint income of >50k for a 90k mortgage would hopefully be OK.

There wouldn't be a probation period, but thanks for getting me thinking. The area we are moving to is rural and property supply is pretty low and the market is currently slow, so now we have found the ideal property, I would hate to lose it, but understand my situation is complicated and lenders may not look too favourably on it.

dwsjarcmcd

sparkins1972 wrote: »

Thanks for the quick response - affordability shouldn't be an issue - joint income of >50k for a 90k mortgage would hopefully be OK.

There wouldn't be a probation period, but thanks for getting me thinking. The area we are moving to is rural and property supply is pretty low and the market is currently slow, so now we have found the ideal property, I would hate to lose it, but understand my situation is complicated and lenders may not look too favourably on it.

From what you've said, I'm not sure that your situation is that complicated. You have a timing issue, that's all which would happen to anyone changing jobs.

If the house is one you've got your heart set on, why not just speak to the vendor and explain your position. As you have said, the market is slow and buyers scarce, so it may be that your vendor will wait until the timing issue is resolved.

opinions4u

I'm not sure the BTL will be that much of an issue.

£90k on your wife's £25k salary may well be achievable at 45% LTV.