The Question
I am due to remortgage in November, but my job situation is looking uncertain. My employers have announced redundancies and are offering voluntary redundancy.
I’m worried about what will happen to my remortgage if I am made redundant. I have savings to cover my repayments for at least six months and will receive redundancy pay, so I can manage for a while.
But will this impact my chances of getting a new deal? Would I be better off sticking to the lender’s standard rate?
David’s Answer
Your situation will depend on several factors, particularly whether you’ve been officially given notice of redundancy or if it’s just a potential at this stage.
If you’ve not been formally notified of redundancy, your current situation might not affect your ability to secure a new mortgage deal. However, if redundancy is imminent, it’s important to plan carefully.
Consider your options for maintaining your mortgage payments, such as using your savings or discussing potential solutions with your lender.
If your lender offers product transfers—essentially new mortgage deals with your existing lender—you may be able to secure a new rate without needing to undergo the full application process that comes with a new lender.
This could be a good option, especially if you’re concerned about the impact of your job situation on a full remortgage application.
Regardless of the circumstances, it’s crucial to speak with your mortgage adviser. They can help you navigate this period of uncertainty, ensuring that you make the best decision based on your current and potential future financial situation.
Remember, lenders have a duty of care to help keep you in your home, so if financial strain becomes a concern, reach out to them for assistance.
Meet our expert…
David Jackson established Prestige Private Finance in 2014 after nearly two decades in the mortgage industry. With experience in London’s high-net-worth areas, David and his team offer empathetic and expert advice for your financial journey.
If you have a question for David please email kate.saines@emap.com or leave a message in the comments below.
