Impending redundancy - can I get a mortgage?

bazzabear

I am expecting to be made redundant at some point in 2016. I am not officially 'displaced' yet, and there's no agreed date that this will happen (in fact, I strongly suspect it might slip to 2017). But the fact of being made redundant is pretty concrete.
I'm confident myself that this won't affect my ability to repay the mortgage - there are good prospects, and my redundancy payment will give me 18 months to find a job before I'm losing money.

But will a bank see it that way? The answer so far is no. The One account did not, and will not offer me a mortgage. Natwest I have a meeting with on Monday to see if they are the same.

Can anyone offer advise or experience as to whether I'm going to find that all lenders take the same stance?

kingstreet

One Account, RBS and NatWest are the same group, so don't be surprised if the answer remains the same, although I don't know if One Account is actually lending to anyone at the moment.

If you have not been formally notified you are at risk, or consultation is under way, I don't know that you need mention your suspicion.

bazzabear

Unfortunately, in both cases, the actual question asked was:

Is there any expected reduction in income on the foreseeable future?

Knowing that I will be made redundant within the next 2 years or so, I think I have to answer that question truthfully.

wrkactjob

bazzabear wrote: »

Unfortunately, in both cases, the actual question asked was:

Is there any expected reduction in income on the foreseeable future?

Knowing that I will be made redundant within the next 2 years or so, I think I have to answer that question truthfully.

There has to be a legal limit to what can reasonably be seen as "forseeable future"...even though your job may end your payment will continue as stated for another 18 months.

You can't reasonably be expected to predict further than 2018+ as to if your ability to pay will be diminished.

bazzabear

That's exactly how I feel about it too! After all, these days, who in a permanent job can honestly say they're guaranteed their income for more than 4 years?

The trouble is getting the bank to see that point of view. The conversation with One was over the phone, and also 3rd hand - so I can't say how well my argument was conveyed to the underwriter (which is who they asked).

My meeting at Natwest is face to face, so I hope for better.

densol_2

I think you are jumping the gun. No company can say you will definitely be made redundant in two years ! That's ridiculous - if it's a big company with a union they consult at 90 days in any event. As you have not been given any notice etc - my view is you can answer no quite properly.

bazzabear

They have consulted, I will be made redundant. They are moving, and I am not moving with them.

densol_2

I would get a new job then instead of having this axe hanging over me for almost two years !! It's a no brainer

bazzabear

Ah well. When I do get made redundant, I get a significant pay off, so I wouldn't agree that it's a no-brainer.

Until this mortgage issue, I would have argued it's a no-brainer in the other direction - to stay until made redundant. I still think that is the better option currently.

densol_2

OP - answers own post ! Sounds like a plan

bazzabear

Eh?

I'm not quite sure what you're getting at. There's nothing I've said since that wasn't already included in the OP.

Yes, if I waited until after the redundancy payout to move, it would pay a significant portion of what I would be getting a mortgage for. But if there was no reason to be moving now rather than in 3 years time, then I wouldn't be looking now.

It won't be the absolute end of the world if I have to wait - but that's not my question, my question is: Will it be possible to get a mortgage now.