Notice of possible redundancy part way through remortgage app :(

clippy_girl

I currently have a mortgage and the fixed rate ends at the end of November. As they didn't have any good deals I applied to Woolwich through L&C a few weeks ago.

I work in local government who recently announced yet more cuts but we had no idea of amounts per department, whether there would be any losses in my department etc... Therefore I confirmed I did not have reason to believe my circumstances would change as didn't even know if my department would make any job losses, never mind my job personally.

I have had the valuation done and have sent the documents two weeks ago. Just been told they have requested another bank statement. Not sure why it has taken two weeks!

I have been told today that there will be job losses in my department over the next two years. I won't find out until next year whether I personally will be at risk.

So my question is do I need to tell them my circumstances have changed?

Also, my MPI is with my current mortgage co and only covers their mortgages only so will also soon have no MPI

amnblog

The MPI is a concern, getting new cover when you have been notified there are losses in your role coming up is probably a no no.

You may have to balance the benefits of the new rate against the security of your current MPI.

clippy_girl

yes, i prob wont be able to get any new ones. i was in the exact same position when i completed on the mortgage 3 years ago but coop said i could have mpi with them as i hadnt been told my specfic role was at risk but no other co would touch me.

will have to weigh it up as rate is nearly 2% better than coop svr and 1.4% better than the coop best deal. plus will have to pay £300 solicitor fees if pull out of woolwich. not sure if i would need to pay the arrangement fee of £999 as its being added to the mortgage but it obv doesnt exist yet :think:

amnblog

clippy_girl wrote: »

yes, i prob wont be able to get any new ones. i was in the exact same position when i completed on the mortgage 3 years ago but coop said i could have mpi with them as i hadnt been told my specfic role was at risk but no other co would touch me.

will have to weigh it up as rate is nearly 2% better than coop svr and 1.4% better than the coop best deal. plus will have to pay £300 solicitor fees if pull out of woolwich. not sure if i would need to pay the arrangement fee of £999 as its being added to the mortgage but it obv doesnt exist yet :think:

£999 most likely not. If you cannot get the MPI to go forward this could prove very expensive next year. If you feel you will get new employment quickly perhaps the unemployment cover is not that vital.