First time buyer - paranoid about job loss

steampowered

If your mortgage offer expires before completion, and you are made redundant during that period, your bank might not be prepared to renew the mortgage offer.

If you are unable to find a mortgage at completion, you will be in breach of contract because you will be unable to complete. This may mean that the house is sold to somebody else and you lose your deposit. This happened with a lot of the new builds in London during the 2008 financial crash.

In the unlikely scenario of a property price crash you would also be liable for the difference between the price you agreed to pay and the price the house was actually sold for.

Could you refresh your mortgage offer if you are still in your job in say 3 months time?

If so that would be valid for 6 months from that date (effectively taking you to 9 months from today, which should cover you for completion). If you have lost your job by then, then hopefully the remaining 3 months to completion would be enough time to find another job.

sheff6107

Long story short, you need to be in a position to hand over last month's wage slip to your mortgage company. They may even ask for this the day before completion.

So theoretically you could be unemployed but still be in possession of your latest payslip for the mortgage company to release funds on the day of completion.

But you're playing a dangerous game with legalities and timescales.

For you own blood pressure you'd be best knowing you're in safe employment the day you apply for the mortgage.