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Mortgage conundrum!
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poddy21
Posts: 10 Forumite
I've also posted this in the Redundancy forum.
I'm about to be made redundant at the end of Feb, and my fixed rate mortgage ends in March!
I do have unemployment insurance but am wondering what to do.
Is it likely I may get a new fixed rate deal? (The insurance company woul probably want me to because it means they will pay out less money)
The mortgage company will probably not offer me a new deal because I'll be unemployed?!
I will be getting a payment equivalent to a years salary after tax, but currently don't have a job to go to - although I may be able to pick up some contracting work.
If I stick to the SVR its likely to be something silly like 5.5%
Anyone ever been in a similar situation?
I'm about to be made redundant at the end of Feb, and my fixed rate mortgage ends in March!
I do have unemployment insurance but am wondering what to do.
Is it likely I may get a new fixed rate deal? (The insurance company woul probably want me to because it means they will pay out less money)
The mortgage company will probably not offer me a new deal because I'll be unemployed?!
I will be getting a payment equivalent to a years salary after tax, but currently don't have a job to go to - although I may be able to pick up some contracting work.
If I stick to the SVR its likely to be something silly like 5.5%
Anyone ever been in a similar situation?
0
Comments
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Depending on the redundancy package/income if it takes you into the 40% tax I would probably take a month off and start work next tax year if you can any work this year is probably not worth it unless it secures a long term job.
How long before the insurance kicks in, it will probably require a JSA claim so get ready to kick that off the day you finish0 -
Thanks for the reply.
It won't take me into the higher tax bracket, however I will need to purchase a car as I will also lose the company one
I'm unsure if the mortgage company will offer me a new deal or if I will have to go on the SVR - I guess the only way to find out is to call them, but I have a feeling I know the answer
I know what you mean about taking a month off, but there may be some fairly well paid contract work I could do for a few months which would mean I wouldn't need to touch my redundancy money. It would be nice to keep it intact for as log possible without spending (too much) of it0 -
If the earnings for the year with the taxable part of any redundancy(over 30k) still has you below the £42k mark, then starting work ASAP is senible and contract will be the way to go if the jobs are there.
If you think it may be a longer(1y) term option then with ltd you can probably move some of the earning into the 2014-15 tax year anyway.
Just make sure you do take some time off during/between contracts.0 -
On the mortgage front I would just ask them if they have any deals you may be able to secure one now for end of march depending on lender.0
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Thanks for the helpful advice
I think I'll call them and request a new fixed rate deal and see what they offer0 -
I would suggest that the only people who would be able to answer your question would be your mortgage provider.
Even if they refuse to keep you on a f/r mortgage due to your loss of job, there is nothing preventing you looking at other mortgage deals once you are back in work.Never Knowingly Understood.
Member #1 of £1,000 challenge - £13.74/ £1000 (that's 1.374%)
3-6 month EF £0/£3600 (that's 0 days worth)0 -
Switching to a new fix deal with existing mortgage provider should be very simple. No credit and affordability checks. Ask on the mortgage forum. Also, some lenders let you switch 3 months earlier with no penalty (e.g. Halifax, Nationwide).0
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