Mortgage Advice After Redundancy

[marcella]

I'm in a pickle!

Basically I'll cut to the chase, I got made redundant two weeks ago from my job and do not have a job at the moment but a few interviews lined up.

I have a wee bit of debt (from cars & bikes) which I want to clear by downsizing my house. Which means moving from where I stay to a cheaper area with more jobs.

My plan is to by a new build home which is ready now and do a home change deal where the home builder sells my house. Then move into the new house and by that time hopefully have a job (note I will have savings to use to pay bills for up to about 3 months). I want to apply for the mortgage now as I can still use my current payslips so will mean it will be a lot easier to get a mortgage rather than trying it when I have just started a new job.

My only problem is that my mortgage advisor says that the lender can't guarantee I'll get the mortgage as I am working in 'A' but buying a house in 'B'. I said my girlfriend has a job in 'B' and will be staying in the new house and I will stay with my parents in 'A' and continue to work till I have a job in 'B'. The lender basically thinks I am trying to do a buy to let by not taking out a buy to let mortgage as that requires a higher deposit.

So what should I do or say? I know most of you will say to try and get a job before I get the mortgage which I agree is the ideal way but I am going to struggle to get another job to pay all my bills if I haven't cleared my debt so the only way to do that at the moment is sell the house and down size.

[bigandclever]

marcella said:

I got made redundant two weeks ago from my job and do not have a job at the moment... I want to apply for the mortgage now as I can still use my current payslips

I know I'm a miserable old tosser but isn't that, well, fraud?

Anyway, more helpfully, try Sarnie in the Finance section; he's a broker, has a good rep for being helpful with his advice.

[jonah35]

You're effectively trying to find a way to lie.

Do not do this and be honest.

If you can't get a mortgage then that's that.

[berlintaxi]

marcella said:

I want to apply for the mortgage now as I can still use my current payslips so will mean it will be a lot easier to get a mortgage rather than trying it when I have just started a new job.

Do this and I look forward to reading about your appearances in court.

[The Beast of Codfin]

marcella said:

So what should I do or say? I know most of you will say to try and get a job before I get the mortgage which I agree is the ideal way but I am going to struggle to get another job to pay all my bills if I haven't cleared my debt so the only way to do that at the moment is sell the house and down size.

So it's either sell your house and rent for 6 months till you find a job OR lie?

[jamiem555]

I recently re-mortgaged our house. One of the questions was are you under the threat of redundancy? Although there is and has been redundancies recently, my position wasn't currently under threat. So I was able to answer truthfully and say no.
In your position, if the same question presents itself then to be truthful you will need to answer yes.

[halo34]

They will do employer checks surely?

[creampuff]

There was a crackdown on mortgage lending after the start of the GFC, which of course was caused by lax mortgage lending. The lending guidelines stop financial illiterates from getting loans they can't afford, but they also mean that financially literate people in unusual situations can sometimes not get a mortgage which they can infact afford. Or in your case get a mortgage with will put you in a better financial position than you are now. So my recommendation: give the lender what they want to see so that you can get the mortgage.

Beware there will be costs to move house so you really need to look at if this is a good idea or not.

[berlintaxi]

/\

[creampuff]

berlintaxi said:

/\

As usual. People with nothing to contribute saying nothing. Why did you bother? If you have something to say, then say it.

[berlintaxi]

I'll say it, OP ignore Creampuff's stupid advice he is encouraging you to commit mortgage fraud which carries a long custodial sentence if convicted, simple enough for you?

[JB8]

Yeah, what you're suggesting is referred to as application fraud, the crime you would be commiting is fraud by false representation.

[simoid]

creampuff said:

berlintaxi said:

/\

As usual. People with nothing to contribute saying nothing. Why did you bother? If you have something to say, then say it.

Did the pic not load? It had a message on it for you.

OP it looks like you're renting. Or perhaps talk to your current mortgage provider, since you might be in difficulty with repayments soon?

Edited by simoid on Wednesday 13th January 21:26

[anonymous-user]

creampuff said:

berlintaxi said:

/\

As usual. People with nothing to contribute saying nothing. Why did you bother? If you have something to say, then say it.

To be fair, you seem to have nothing to contribute.

[Dave_newcastle]

OP - Do not follow CreamPuffs advice to lie. Fraud is a crime and the black mark against your record would mean you will have great difficulty in getting anyone to lend to you for a house, car or bike ever again.

Firstly I'm sorry you are in a corner.

Reading your post it sounds to me like you have little cash or savings. You say that you can pay your bills for a couple of months only. I interpret that as after that length of time you cant afford to repay your loans on bike/car or your rent.

The only immediate answer I see is to concentrate on getting a job (rather than house hunting and a mortgage)and this will re-establish your income. Moving house has a lot of one-off costs that would come at a time when you have no cash to pay for them so to me your suggestion of downsizing to reduce the monthly housing payments is irrelevant.

If you think that getting a job is not going to happen straight away then remove your other debts if possible (by selling the bike?) to extend your time to get a job.

You can afford neither your existing house rent or a new one without a job - so there is the answer.

Edited by Dave_newcastle on Wednesday 13th January 21:51

Edited by Dave_newcastle on Wednesday 13th January 21:53

[jonamv8]

Everyone sayiing your going to get done for fraud.

If you get mortgage, keep up payments, how is lender going to know or even care?

[simoid]

jonamv8 said:

Everyone sayiing your going to get done for fraud.

If you get mortgage, keep up payments, how is lender going to know or even care?

Are you advocating fraud because he might get away with it? That's an interesting angle.

[creampuff]

If you people above want to call me stupid, do so. These cartoonish pictures with cute sayings are ridiculous. Considering you all are quick to hand out the stupid label, you cannot even read my post correctly. I said OP should give the lender what they want, not give them fabricated documents. In this case the lender seems to think it may be a buy to let, which may have a higher interest rate and certainly will have a higher deposit which OP cannot afford. Therefore OPs purpose will be to convince the lender that it is not a buy to let, which indeed it is not. The "fraud" which you allege I make is to convince the lender that it is not a BTL, via the girlfriend moving in as per OPs post- except this is not fraud, because OP is not buying this as a BTL and because OPs girlfriend probably will stay there, at least some time, regardless. I offer no advice about submitting payslips from the job in 'A' . That will fail or not fail without anything OP can do: for this to work OP would need to service two mortgages, as far as the lender is concerned. OP is unlikely to be able to afford two mortgages, so will likely fail there, but this is a separate problem for OP as the immediate BTL suspicion.

[Du1point8]

nobody going to suggest to OP to do a mortgage holiday instead, usually you can do it once in the life of the mortgage for up to X months... use that time to get a job in a different area and rent whilst selling the house then get a new mortgage in 3 months time after you have got a new job.

[fido]

jonamv8 said:

Everyone sayiing your going to get done for fraud.
If you get mortgage, keep up payments, how is lender going to know or even care?

Or the predicted [in NPE] global slump happens. He defaults on his fraudulent mortgage and ends up in st Creek.
I still have personal recollections of the last Credit Crunch '08 and luck can go against you when you least expect it.