will threat of redundancy hinder application

muffins_mate

we are in the early stages of selling our house but have still not found a house to buy yet. my partner has been informed officially in writing that every employee is at risk of redundancy due to cost savings. we have not yet taken any mortgage advice but would this position hinder our chances of getting a competitive mortgage deal, if one at all. we would be looking for a joint mortgage of £120000 with £75000 deposit. our combined earnings are £42000

herbiesjp

What would be the sole earnings if your partner did lose their job?

Do you have any other debts/loans/credit cards/HP etc in the backgrround that would not be cleared?

luckyfool

Would your partner be confident of sourcing similar alternative employment within a short timescale? Do you have a rainy day fund put away that would allow you both to survive (and pay any mortgage) for an extended period of time if your partner was made redundant? Do you have any idea how much if any redundancy pay he/she would get if this was to happen?

Most lenders do not ask a question along these lines so it is unlikely to restrict your mortgage options at this point, unless they are actually made redundant at the time of application. However bear in mind that you would not be able to take out any Unemployment insurance (at least would not be able to claim on it for this), and you need to think seriously as to whether it is a good idea to buy at this time. Have you considered renting for 6 months + and potentially buying later on without a chain and once your husbands situation is more clear cut?

poppy10_2

If one of you is facing redundancy, why would you even want to consider taking out a mortgage???