Applying for a Mortgage when 50% job cuts are on the horizon

skipfeeney

Hi All,

The organisation I work for is being abolished and merged with another government department.  Wes Streeting has announced 50% job cuts but nothing formal has happened -  I have not been placed at risk or anything like that.  Under the circumstances could I still apply for a mortgage or is there no chance?  I have worked for the organisation over 15+ years, and I am due a large redundancy that would pay the mortgage for a while.

I know this is risky, and its not something I would normally consider however I have gone through 3 restructures in 5 years so I have been holding off and we need a bigger house for a growing family.  I feel that mine and my families life has been on hold whilst all these restructures have taken place.

Thanks

El_Torro

As I understand it you don't need to go into details with the mortgage company, unless you know for sure that your job is at risk / being made redundant. Currently it sounds like hearsay. 

Whether you want to take the risk is up to you. A big redundancy payout is nice but how quickly will you be able to find another job?

Brie

I didn't inform the bank when my role had actually been noted for redundancy as I felt confident that I would get another role in the company.  It was just a tad stressful I must admit (I was dealing with a death in the family, moving, mortgage and job hunting all at the same time) but managed to waddle my way through.  

I would say the important thing is to not lie in the application but also not to waffle on about "well, maybe, sometime, something might happen that just might...."   Something, sometime might happen to any of us but we don't know until it has happened.

MWT

If you have a mortgage already then no need to say anything to the existing lender.

...but if you are applying for a mortgage then as long as you have not formally been notified that you are in an at risk group then there is nothing to say but once things are made formal then if you are still in the period before completion then you are obliged to tell the lender which is of course a high risk conversation, especially if you are between exchange and completion at the time....