Impending redundancy - can I get a mortgage?

getmore4less

You have to be careful with notice of redundancy legally this only happens at the end of consultation but I suspect most mortgage insurance companies consider the notification that redundancies might happen is what they are interested in

Wh05apk

YOU WILL NOT GET A MORTGAGE IF YOU DISCLOSE THAT YOU ARE LIKELY TO BE MADE REDUNDANT IN 2 YEARS TIME.


Can't put it much clearer than that, lenders have to look at affordability both now and ongoing, it doesn't matter that you will have savings/redundancy to last you x years, once that runs out effectively you will be unemployed, they will not lend on the basis, that you may or may not get a job at that time.


Can you imagine the scene in 4 years time when they are in court trying to repossess you, you tell the judge that you told them you would be redundant after 2 years, but they still gave you a mortgage with no long term prospect of being able to repay it. The case would be laughed out of court, if the lender cannot repossess if they need to, they will not lend.

bazzabear

Well to close the loop on this, the advisor at Natwest told us that they would absolutely still offer us a mortgage, they weren't concerned about our situation at all.

They then went on to offer us a ludicrous amount - not far off double what I'd actually be comfortable lending. I thought banks had stopped doing that sort of thing? Mind you, my version of a reasonable amount to lend might be rather conservative these days since I've got used to having a teeny mortgage.