relocating with no new job & getting mortgage

csp22uk

Hello all, firstly hi as this is my first post on here.

My question relates to a major change my wife and I are planning to make. Due to redundancy (mine) and a few other factors, we have decided to move back to our home area of scotland. We currently live in Teesside.

We dont yet have new jobs to go to, but obviously plan to get new jobs once we have agreed a move date, but where would we stand on getting a new mortgage being both in new employment.

Some facts,

Both excellent credit rating. late 30s, one child.
Would have around 60% deposit for a new 3 bed detached in a fair areas in central scotland plus another 15% ish in savings. Ive worked out we would need a smallish mortgage in the region of £300/month.

Would we only be considered by lenders after both completing probationary periods in our new employment or do they take the large deposit into accounting for the risk. Eg our savings would be enough to pay all the bill with no employment for at least two years...

The main drive here is to avoid costly renting in the short term and just buy..

Any comments would be appreciated.

Thanks

fiisch

[Stock answer] Depends on the lender [/Stock Answer]

Halifax tend to be one of the more flexible lenders out there, as I've learned from experience. We're doing something similar re.: relocating, and they'll consider my wife's current wages as part of their affordability consideration, even though she'll not be able to continue the job once we move.

Similarly, they consider contracts of employment even if you're still in probationary period, or if you've yet to start (as long as you have the contract of employment).

Depends what your wife's situation is, but she may have sufficient income now to get the mortgage you need for the move.

Other lenders may also work - I only use Halifax as an example as every time we've remortgaged we seemed to end up back with them due to their flexibility and a slightly complicated personal circumstance (I'm a contractor).

In summary - it's almost certainly doable, but it may mean that, cat least for the initial term, you won't have access to the very best rates. If you can get something lined up in Scotland before the move, this will inevitably make life a bit easier in terms of the mortgage. The other option is to move into rented temporarily until you find your feet, although that one has never much appealed to me (although with the dark clouds gathering over the housing market at the moment, being out of the market for 6-12 months could perversely be a good thing!).

csp22uk

thanks for the quick reply. I should maybe have put more figs in for illustration.

My wage before redundancy £40k, wife £19k
No debt.
equity in current property is £100k.
Approx £40k savings.

We were looking in the region of £170k-£220k for a new property, so not that big a mortgage I guess.

My wife will get re-employment in the new area very quickly and easily doing an identical job, I on the other hand may take 6 months or so.

If we put £120k deposit against a £170k house, thats around £230 a month (same as what we have here).

The rental properties we would be looking at £800-£1000 per month, which certainly would not be affordable on her wage alone short term (but the mortgage would)....

fiisch

A back of the fag packet calculation would suggest that if you can find a lender to lend based on your wife's current employment (and I'd suggest Halifax would, as well as possibly some others), would allow a mortgage of around £19k x 4.5 = £85.5k, not including any credit commitments.

So £185k would be doable as a creaking maximum....

amnblog

No new jobs or job offers in Scotland = no mortgage.

Job offers in Scotland = some potential.

Mortgage_Adviser

Unless you have thousands of £ in benefits or some othjer income unless you have secured the jobs even not started those yet, you will not get a mortgage as you are unemployed.