Possible redundancy and applying for a mortgage

davecon1

Hello all

It is quite likely that I will be made redundant next April as the owners of the business have said that they would like to sell up and retire. Originally this was planned for September this year but it has been postponed by 8 months and possibly could be postponed again. As yet nothing has been communicated in writing.

My mortgage with Santander is due to expire next year in June and I'm concerned that if I am unemployed at that point in time then I will not be offered a new mortgage, despite the fact that I only have about 10% of my mortgage left to pay and my payments will be very small.

Am I better off redeeming the mortgage now, paying a small fine and applying for a new one (tracker) and free up some capital for a rainy day?

Thanks!

Thrugelmir

Personally I would be reducing the mortgage debt as quickly as possible. Given you know what the future holds.

davecon1

Ideally I would love to pay off the balance of the mortgage but but in this case I have to release some money to make some home improvements.

My worst case (or best case depending how you look at it) would be to rent the house out and travel.

The question is what can happen if applying for a new mortgage if you are made redundant? I will receive a statutory pay off but am hoping for a good redundancy package as I have been with the company for 20 years.

Annisele

When you say your Santander mortgage is due to expire, do you mean it reaches the end of its term? Or just that your rate expires?

If it's just that your current rate expires, you'll be able to keep your existing mortgage with Santander.

davecon1

The fixed rate of 3.99% expires which means I will be on their awful SVR rate of 4.99%. No way I would want to be on that rate but moving mortgage could be an issue if I start a new job.