Mortgage queries post redundancy

alicecat52 · 6 May 2020 at 3:38PM

Unfortunately, my husband has just been made redundant on the back of coronavirus. My question is on remortgaging our house. Our current deal is with Natwest and is due to expire at the end of the year. My husband is thinking that we should remortgage asap as we don't know what situation we'll be at the end of the year. However, if we apply now for a new mortgage will we have to say that he is being made redundant? I'm assuming so....and if so then it will be very difficult to get one until he gets a new job. If we apply for a mortgage payment holiday, could this then jeopardize us either apply for a new mortgage in future or carrying on with that mortgage? I've done some figures and think we are better off carrying on with our current mortgage until the end and perhaps applying for a payment holiday, and that if we do apply right now we'd be rejected on the grounds that he's been made redundant. Would you agree? Also, how do they assess whether to give you a payment holiday or not? ....obviously we will be getting a redundancy payment so can pay the mortgage at the moment, but we have no idea when my husband will be able to get a new job.

mcooke999 · 6 May 2020 at 3:45PM

If you were to apply for a new mortgage now, would you be able to get one based on your own salary? Obviously the bank isn't going to lend any money based on your husbands now none existant salary + even at the end of the year they will ask for at least 3 months pay slips so hopefully he'll find another job soon!

You can apply for a 3 month payment holiday which due to the current situation shouldn't affect your future chances of getting a mortgage providing you apply and the bank agrees.

If you have made any overpayments over the years then you should also have an overpayment reserve which your lender may allow you to use to pay the mortgage instead of your monthly direct debits, but you need to check this first with the lender & make sure they agree to it before you cancel the direct debits.

Our mortage provier (Nationwide) has said we can use our overpayment reserve to pay the mortgage if we need to so other mortgage companies might do the same.

TheAble · 6 May 2020 at 4:07PM

I presume you mean your Natwest fixed rate expires at the end of the year? Why not just stick with Natwest - at the end of the year just ask to be moved onto a new fixed rate deal.

craig88b · 6 May 2020 at 4:09PM

My understanding is that if you stick with the same bank and just renew your mortgage then it's a simple process with no income assessments done at all.

sharpe106 · 6 May 2020 at 4:16PM

If you are just renewing you can do it online, they will do no checks. If you are wanting to borrow more then you might have an issue.

Thrugelmir · 6 May 2020 at 4:19PM

Remaining with your existing lender is not a remortgage. Continue to repay your mortgage as long as you can. Defer taking a mortgage holiday until you actually need one if you can.