redundancy and finding a mortgage

mystic_bertie

hi there, i am using my boyfriends log in to post this.

i have sold my house which i co-owned with my sister and i am moving out on the 11th may however i have now been offered redundancy at my work and its quite a substantial amount. I am more or less decided on accepting the redundancy package as its a good package i am getting and the job is not really worth staying for. I am looking for a house for myself ie not moving in with anyone else so only my income to consider.

My big problem is now trying to find a mortgage if i take my redundancy, not the best situation to be in but i dont even know if its possible to get a mortage. I would be leaving at the end of march and would be looking for a job asap. How can i find a mortgage when i am going to be out of work come the end of march. Also if i applied for a morgage in the next week whilst still employed would they check with my employer or find out i am being made redundant.

Who will i need to inform of my redundancy?

Please give me some options or suggestions on what i can do, is it at all possible to get a mortgage under these circumstances.

tigerminxy

You ought to tell the lender that you will not be continuing in your employment. If you don't, well, you might see that as bending the rules, they might see it as fraud. Whether or not they ask your employer for proof of earnings depends on the lender, really, and how strictly they're going to apply any checks.

Personally, I'd wait until I had another job lined up before applying for the mortgage. Why are you waiting until the end of March to look for a job?

mystic_bertie

tigerminxy wrote: »

You ought to tell the lender that you will not be continuing in your employment. If you don't, well, you might see that as bending the rules, they might see it as fraud. Whether or not they ask your employer for proof of earnings depends on the lender, really, and how strictly they're going to apply any checks.

Personally, I'd wait until I had another job lined up before applying for the mortgage. Why are you waiting until the end of March to look for a job?

i have started looking for a job now, its just if i take the redundacy i have 2 weeks of employment left with my current employer. So any mortgage i apply for in the next 2 weeks probable wont accept my application if i am going to be out of a job by end of march. I dont know how long it will take to find a job, not long i hope.

---lee---

I've only had two mortgages but on each occasion the building society wrote to my employer's asking for a reference. In your case, if you applied now, I would imagine that by the time the bank/building society contact your employer, you will have left!

Also, (and I'm just speculating at this point) would lengh of service not be an issue when you find new employment - that is, would the mortgage company want to see that you were in stable employment for a certain period - perhaps one of the experts can advise?

Is it possible for you to stay with your current employer for a while until you can sort out your mortgage and then take the redundancy or do you need to make the decision now? If you could still afford the repayments whilst your looking for a job and you've not yet committed to taking the redundancy, I can't see why that should be an issue.

ginger_nuts

Not the same situation but I remortgaged my house when I had a temp contract .So even if you get a temp job you can get a mortgage .But it depends on your circumstances

Mr_helpful

There are plenty of lenders who do not contact the employer but in theory you should tell the lender but also you want to make sure you can get a new job

JoeK_3

The most simple answer is to rent a flat until you have found a job. Any other way you would be committing mortgage fraud when completing the mortgage application form.

Regards
JoeK

MortgageMamma

Hi

The best thing is to wait until you have got a new job - some lenders have no minimum time in job before you can apply

you could put your furniture in storage for as little as £10 a week until you needed it

You could crash at a friends or stay in a cheap B&B until you are sorted with some work

mystic_bertie

hi thank you all for the helpful replies, well its not lloking very promising to get a mortgage under my circumstances.

Today i went to my human resources and asked them if it is possible to keep me on at work for another 3 months unttil i get a house and mortgage sorted out, they siad the will nee dto consult the MD. so im unsure if they will agree to this and still give me the same redundancy package.

thanks again