Would anyone consider giving me a mortgage?

BertieBob_3

Strange question but I suppose I have a unique set of circumstances!

Quick background,
Currently live in a property which as been valued at circa £200k we have approx 5 years remaining on current mortgage owing circa £30k
I am due to be made redundant in a years time with a redundancy payment of approx £80k
My circumstances allow me to claim my pension in 5 years time with approx £80k payout and £20k a year pension.

What we need, a bigger house!
Ideally we want to pay off our current mortgage in a years time and then rent out our property (which has been estimated at £800 a month) as this will then be our fall back property / investment for the kids rather than sell it which is still an option.

Would a mortgage company even consider us when in black & white I am being made redundant or would they consider the circumstances i.e.. the rental income & pension.
Or would it be best waiting until I have the money in the bank and a new job before we go down the route of a new property?

Any advice will be appreciated before we make ( and therefore inform our mortgage company I am being made redundant!) any decisions.

kingstreet

Rental income from an unencumbered property and pension income can be used to evidence affordability for a new mortgage.

The detail will determine what this means to you.

dimbo61

You have a GAP of 5 years before you get your pension.
You might have a Deposit of £50,000 but you also need an Income to get a mortgage

Thrugelmir

How much are you hoping to borrow. The pension while guaranteed is 5 years away. So won't be treated as income now. Without a job you'll presumably living off your savings. £30k will disappear in settling your existing mortgage. Stamp duty on a second home will be sizable as I assume the purchase costs to be greater than your existing £200k property.

BertieBob_3

Thanks for the replies.
Couple of things;
The property that would fulfil our needs is circa £250k
I would like to think that my skill set and age would see me find employment fairly easily.

I guess everything comes down to timing and if we wait I am sure the options become easier but now the wife has started looking at properties things need to be considered lol.

Would the security of my redundancy payout and future pension combined with a rental income be enough to secure a mortgage or does it all come down to job income?

Ideally we would like to keep our current home and rent it out but the option to sell it and buy a new home mortgage free is not a bad option is it?

David_White

Your pending redundancy offers the lender anything but security

BertieBob_3

David_White wrote: »

Your pending redundancy offers the lender anything but security

missed a word, redundancy payout I meant rather than just redundancy which I know on its own would offer no security.

David_White

Lenders are likely to struggle with the pending loss of job regardless of any potential payout.

Besides, from their point of view who's to say you won't spend the money on a cruise or give it to the children?