Should i take mortgage on if i may lose job soon?

brain68

I have been working in my current IT Support job since December 2006, but the company is in financial trouble and although my wages were paid last month i know this month it is unlikely i will get paid on time. We are owed alot of money from our clients so i may get paid, but cant be sure I will be sticking with the job even if i dont get paid as i know if i resign i will not be able to claim benefits for 26 weeks and i will not be able to claim breach of contract against them. I have been job hunting like mad and i will get another job, but i do not know when!

My question is.... i bought a house about 5 weeks ago and the mortgage lender and solicitor is processing everything now. I can pull out anytime before contracts are exchanged without penalty (i will just lose the fees i have paid the solicitor and surveyor, but thats not a big deal).

Bearing in mind that house prices are rising all the time and i am 30 and this is my first house and i want it more than anything (i still live with parents) would you still go ahead with the house or pull out?

TOBRUK

The decision is yours, I don't know what your situation is and only you know if you could cope with the mortgage you have agreed on if you were out of work for months. Even if you lost your job (that you did not resign) and had benefits you would not get any help at all with your mortgage interest for around 30-40 (can't remember exactly) weeks.

brain68

I could survive for around 3 or 4 months and then i would be potless! I'd like peoples opinions on wether they would still go for the house or not.

cheers

Oldernotwiser

Could you get anyone in to share if you lost your job? How easy would it be for you to find another job if you lost your current one?

TOBRUK

Well you never know what is around the corner, and if you have your health you have a good chance of finding a job anyway. Another thing is if the worst happens and as you live with parents at the moment perhaps they wouldn't mind you staying a bit longer, you could always rent the house out to meet your mortgage payments (and move back to parents for a while), or get a lodger to help with repayments???

Personally if you have been approved for a mortgage now I would go through with it, I think house prices will go up further again and you may be sorry you didn't take this chance and regret it.

Two years after buying my house I had to leave work through ill health, it was tough especially as I live on my own, I was worried that there may be a point where I would not manage - but you do somehow. Mind you house prices and mortgages have gone up since then (9 years) and people are now having mortgages 10times their salary - that would really worry me.

brain68

I could ask a few mates or try to get a suitable lodger maybe. At least by going for the house i can say that i tried if it doesnt work out. I guess there are many ways to keep the house going if i cant afford it due to job loss.

Believe it or not I.T Jobs in South Wales are hard to find, i have nearly 7 years experience and it doesnt get any easier finding work. I know that i am doing my best to find another job and i cant do much more than i am doing now.

Thanks for the advice it has helped me be more positive.

TOBRUK

I live in South Wales and I understand that it may be hard getting an IT job, and the sort of job you may be looking for. Have you thought of trying it alone - there may be help with new deal or something?

Good luck anyway, and yes, keep positive.