In the middle of mortgage offer and made redundant

3smees23_2

Hi,

Another thread of this nature I'm afraid. We are moving to a slightly bigger house and are porting our mortgage plus looking to borrow more to make up the difference.

Unfortunately it was confirmed yesterday that I will be made redundant, couldn't be worse timing.

If I told our lender of the change in circumstance then would they include my mortgage protection payments in there new affordability check? I will also be getting £11k in my Dec pay check, eligible for this years bonus, have £10k savings and also taking out £10k from the sale of this house as a buffer. So I'm not concerned about not being able to repay the mortgage each month.

My OH salary is £42.5k and our total mortgage will be £224k. Essentially this move will increase our payments by £600.

Your thoughts would be appreciated

Thanks

betmunch

You have a duty to inform them of any material change in circumstances.

Tell them what happened and make your case.

maninthestreet

Surely you aren't going to be able to make a claim on a mortgage protection policy taken out after you have been told you are being made redundant?

3smees23_2

I have been paying my mortgage protection premium for 2 years now, since I got my first mortgage.

kingstreet

In my experience, a lender will not agree to lend in the circumstances described.

In the best case scenario, if the lender is one which accepts it, your application can resume when you have a confirmed written job offer with confirmed commencement date.

If you are with a lender requiring a minimum period of employment, you will need to wait out that period, be it three, six, twelve months etc.

Typhoon2000

I suspect your mortgage insurance will pay out only on your current mortage ( if you still have it) and not any new mortgage ( which is what porting is) that you take out after knowing you will be made redundent. I suspect your best move will be to stay put and look a for another house once you have a new job.

foxy-stoat

If you have £10K in savings and £11K in yournext pay cheque why the heck are you wanting a further £10K as a "buffer"?

Sounds like you should find another job before proceeding.

3smees23_2

The £10k buffer was the home improvements buffer, however I'm starting to get quotes back and they are less than what I budgeted so I doubt we will dip into this much if at all.

stator

I assume you haven't exchanged contracts?

Thrugelmir

Typhoon2000 wrote: »

I suspect your mortgage insurance will pay out only on your current mortage ( if you still have it) and not any new mortgage ( which is what porting is) that you take out after knowing you will be made redundent. I suspect your best move will be to stay put and look a for another house once you have a new job.

A thorough read of the policy documents is required I would suggest.

Johnnytwostep

keep quiet about it