Applying for mortgage with uncertain job

mol_99

Hi,
Me and my partner have recently reserved a new build property (in the first stages of being built) as FTB. We both work full time and are on average salaries. We are wanting to borrow about £60k under what we have been told we could borrow. We have obtained a AIP (5% deposit), which was done through the developers recommend mortgage advisor and it was all going okay. We have now been informed my partners work firm may be closing down. He works for a large company who have lots of different sites across the uk. They’ve advised he may get redeployed but this is not certain. For the time being he has definitely got a job until at least the end of August. But again the firm is not definitely closing. 

We are looking at applying for a mortgage (this needs to be done in line with the reservation being held) within the next few weeks, but are unsure what the outcome will be. 
We could afford the bills with my wage alone so this wouldn’t be an issue - it would be tight but not impossible - but I could not get a solo mortgage on my wage alone. If not redeployed he would also actively look for work as soon as possible. 

I have a few questions 
- if he is redeployed with the same company, would the broker take this is continued service i.e 2-3 years. 

- How would a slight pay decrease affect us? 

-Anybody ever been in a similar situation (please)

princeofpounds

1) yes, can't think of a reason why not. 

2) Slightly decrease your affordability calculation and reduce the amount you can borrow. Unlikely to be a huge issue if slight given your moderate ambitions to borrow.

3) It's not common but yes plenty of people on here will have been. Your biggest problem is that you probably have to inform your potential mortgage lender about the change in circumstances, and they may not be willing to lend until his situation is clarified.

macman

But as of yet, there is no change of circumstances. The OP has not been given formal notice of redundancy, and it may never happen, so what is there to report to the lender at this stage?

princeofpounds

macman said:

But as of yet, there is no change of circumstances. The OP has not been given formal notice of redundancy, and it may never happen, so what is there to report to the lender at this stage?

It's a fair point, but I took 'we have been informed my partners work firm may be closing down' to be the start of the consultation period. If it's less formal than that, yes it may not yet be reportable.

You don't have to be made redundant to report it though - being on consultation is enough. 

mol_99

princeofpounds said:

macman said:

But as of yet, there is no change of circumstances. The OP has not been given formal notice of redundancy, and it may never happen, so what is there to report to the lender at this stage?

It's a fair point, but I took 'we have been informed my partners work firm may be closing down' to be the start of the consultation period. If it's less formal than that, yes it may not yet be reportable.

You don't have to be made redundant to report it though - being on consultation is enough. 

Thanks guys - yeh they are in consultation at the minute but looks like it could be a long process (union action, strikes etc.) we should be going to the developer in a couple of weeks so will see what the situation is then and have a chat to them, see if it’s worth actually making the application. Really don’t want to do the app if it’s just going to end in disappointment. 

Thanks for your help 😊