Buying a house, my employer has announced redundancies by end of year

GavChap

My employer who shall remain nameless, has recently announced redundancies, around 5% of the workforce globally will be axed before the end of the year.

I'm currently at or near the end of buying a house, we're just waiting for exchange. But I'm worried about what will happen if I get made redundant just after purchasing a property. We're on a single income (mine) and we have two kids. I'm rethinking going through with the purchase until it's clear I'm not being made redundant.

What would you do?

LandyAndy

GavChap wrote: »

My employer who shall remain nameless, has recently announced redundancies, around 5% of the workforce globally will be axed before the end of the year.

I'm currently at or near the end of buying a house, we're just waiting for exchange. But I'm worried about what will happen if I get made redundant just after purchasing a property. We're on a single income (mine) and we have two kids. I'm rethinking going through with the purchase until it's clear I'm not being made redundant.

What would you do?

I'd carry on. You have to live somewhere. And I've been out of work a few times and always found something else quite quickly. Any way you have a 95% chance of not being made redundant by the end of the year, plenty of people would be pretty happy with that.

pinkteapot

What are your monthly living costs now, and after the move?

I.e. how much more expensive or cheaper is the new house going to be compared to where you are now?

Next question - I assume you're renting at the moment. If you were made redundant and if you can't get another job (both unlikely), what would you do? Are you tied in to a rental contract? If so, it's not all that different to owning. Do you really have scope to downsize your rental house or move in with family?

LandyAndy

pinkteapot wrote: »

Next question - I assume you're renting at the moment. If you were made redundant and if you can't get another job (both unlikely), what would you do? Are you tied in to a rental contract? If so, it's not all that different to owning. Do you really have scope to downsize your rental house or move in with family?

And if was going to be out of work for a month or two I think I'd rather deal with a mortgage lender than a private landlord.

bmunky7

pinkteapot wrote: »

What are your monthly living costs now, and after the move?

I.e. how much more expensive or cheaper is the new house going to be compared to where you are now?

Next question - I assume you're renting at the moment. If you were made redundant and if you can't get another job (both unlikely), what would you do? Are you tied in to a rental contract? If so, it's not all that different to owning. Do you really have scope to downsize your rental house or move in with family?

Exactly. Being redundant will always be bad, but will it be much worse as a result of buying a place or will your outgoings not change much anyway? Also, how easily would you be able to get a new role, I mean if you're highly qualified / skilled etc... then hopefully if the worst happens you'd not take too long to find a new job anyway, especially if you have several months notice.

davidmcn

These days nobody can be absolutely certain of job security. What if you have a 5% chance of losing your job next year too?

Unless you think your role is particularly likely to be made redundant I would carry on. Aren't they likely to manage to get volunteers for only 5% redundancies anyway?

Procrastinator333

One thing I would suggestis you you keep the time between exchange and completion to a minimum. Less than a week if possible. I think you would be in quite a tricky place if you exchanged, then the next day got called in to tell you your job is at risk. You are probably required to tell the mortgage provider, who would then pull the mortgage and leave you with your pants down. Or you don't tell them and have sleepless nights waiting for the completion date while you are technicaly committing mortgage fraud by not telling them.

getmore4less

As other have said it might be best just to carry on but then batton down the haches as cash is king,

Don't have any commitment or contracts that need paying.
don't set up sky/VM.


One thing to consider is the mortgage can you review the term and push that out to the max to recuce the contractual payment.

GavChap

Thanks for all the replies, somewhat reassuring.

I'm a web developer/software developer of around 15 years experience, but I'm the only income at the moment as we've got a small child not yet in nursery, and one in school.

I'm highly skilled, and I think in good demand. I've put in a similar question to my HR department, not that I think it'll help that much.

Forgot to add, at the moment we have around £300-£400 left at the end of a month (on a good month). When we mortgage we'll be around £200-£300 left over.

pinkteapot

So, your monthly outgoings are going to be about £100 more after you buy. I wouldn't say that's enough to make a difference.

Are there many other jobs in what you do in your area, or is there a chance you'd have to relocate to find work?

GavChap

pinkteapot wrote: »

So, your monthly outgoings are going to be about £100 more after you buy. I wouldn't say that's enough to make a difference.

Are there many other jobs in what you do in your area, or is there a chance you'd have to relocate to find work?

We're moving away from my current area. There's large towns in commutable distance, I currently work from home and will when we move, plus the town we're moving to is on a main line to London within commutable time.