New build purchase/potential redubdancy

leecpfc

Hi, just looking for a bit of advice. Someone I know put down a deposit for a new build property to be completed in July on Sunday. Today the company said person works for has gone into administration throwing up the prospect of redundancy. No way he is going to be be able to cover the mortgage if he loses his job with no idea if he’ll pick another up quickly enough. Is there likely to be a cooling off period for his deposit/purchase? I appreciate he’ll probably have the info in his paperwork but at the moment he’s stressing and I want to at least be able to offer some quick advice....

middleclassbutpoor

Quick advice is that they should make the mortgage company aware and his solicitor aware of any material changes to their circumstances.

Clearly, if they have yet to be told that they are to be made redundant then there is no material change to report as yet.

It is possible that as July is some time off, they may want to consider looking for a similar paying job which is more secure in terms of the company being financially sound. Likewise consider redundancy cover for the mortgage if their savings are insufficiently going to cover them in this instance.

Thrugelmir

middleclassbutpoor wrote: »

Likewise consider redundancy cover for the mortgage if their savings are insufficiently going to cover them in this instance.

Too late if the employer has already announced itself to be in administration.

Jonbvn

If they have just put down a few hundred pounds deposit, they are best walking away. If they have exchanged contracts and paid 10%+ then they will have to consider other options. Informing the mortgage company and solicitor is key in that instance.

middleclassbutpoor

Thrugelmir wrote: »

Too late if the employer has already announced itself to be in administration.

I meant if they ended up in a different role with a new company - accept i could have been clearer.