Being made redundant, was about to get a 20% mortgage. Is that impossible now?

[Poormans]

Hi all. I am being made redundant in August. The timing could not be worse. I am the sole earner in the family and we just sold our family home this month and would have been moving into our new home in November/December time frame. We are currently living with family because the new house is not built yet and we only have the deposit on it, no contracts signed yet. The old house was paid off so we only needed a 20% mortgage, (~€80K) for the new house. I haven't spoken to the bank yet but is it impossible now to get that? I was told even if I got a new job immediately the bank would not give me a mortgage until after a 6 month probation period. I dont know what I am going to do.

 

[_OkGo_]

That is incredibly frustrating and unlucky but you have a few options.

1. Have you calculated what your redundancy will be? How much of the €80k shortfall will it cover

2. You can negotiate the probation period with any potential new employers to shorten it or waive it completely but it may not be possible.

3. The figure is not very high at €80k. There is a reasonable chance you could get €50-75k from a credit union as a personal loan. Interest rates are obviously higher but you are stuck in a bind so just accept it being a bit more expensive. Or do you have any family that could help you bridge the gap?

4. How realistic is the November/December timeframe? When we bought a new build, the completion date went from September to February so you may have time to complete most of your probation period

Most importantly though is to speak with your solicitor and don't sign any contracts until you are clear on the source of your funds

 

[Poormans]

That is incredibly frustrating and unlucky but you have a few options.

1. Have you calculated what your redundancy will be? How much of the €80k shortfall will it cover

2. You can negotiate the probation period with any potential new employers to shorten it or waive it completely but it may not be possible.

3. The figure is not very high at €80k. There is a reasonable chance you could get €50-75k from a credit union as a personal loan. Interest rates are obviously higher but you are stuck in a bind so just accept it being a bit more expensive. Or do you have any family that could help you bridge the gap?

4. How realistic is the November/December timeframe? When we bought a new build, the completion date went from September to February so you may have time to complete most of your probation period

Most importantly though is to speak with your solicitor and don't sign any contracts until you are clear on the source of your funds

Thanks for the information. Agreed very frustrating.

1. The redundancy would cover half of the $80K but I am very worried that using it would mean we have no safety net / nest egg if I cant get another job and if I did somehow get a loan for the rest I would not be able to pay it back

2. I have put out feelers and applied for jobs but had nothing positive back yet so I am not being very optimistic about getting a new job any time soon. That could be just me feeling down right now though.

3. I will look into that.

4. Tbh I am not sure its realistic. They have not even come looking for us to sign the contract yet or ask for any more money. I am acutally hoping it gets pushed out to Feb or something because the probation period might be over then, assuming I got a job.

I will be discussing it with our solicitor this week or next. Def dont want to commit to something I might not be able to finish and then lose more money.

Thanks again for the suggestions

 

[Bronte]

We are currently living with family because the new house is not built yet and we only have the deposit on it, no contracts signed yet.

Do you mean a booking deposit? Is the site levelled? You think a house will be built in 5 months? When will you be signing contracts?

 

[Poormans]

Do you mean a booking deposit? Is the site levelled? You think a house will be built in 5 months? When will you be signing contracts?

Yes a booking deposit, the site has houses already with people living in them but work has not started on ours yet.

 

[dubdub123]

If it was me I'd consider trying to get a personal loan now of the 80k while working over 10 years. Keep half the redundancy payment and that should cover payments for a couple of years.
In the meantime try save as much as you can to tip away at the 80k loan. Once you are back in work you can accelerate payments.
My concern would be backing out of the purchase now could set you back a year or more and it may not be sustainable to stay with family long term so you could end up easily spending 2k pm on rent.

 

[Poormans]

If it was me I'd consider trying to get a personal loan now of the 80k while working over 10 years. Keep half the redundancy payment and that should cover payments for a couple of years.
In the meantime try save as much as you can to tip away at the 80k loan. Once you are back in work you can accelerate payments.
My concern would be backing out of the purchase now could set you back a year or more and it may not be sustainable to stay with family long term so you could end up easily spending 2k pm on rent.

Thanks. Some of that sounds great if possible. I'd hate to let the house go so I share some of your thoughts, especially about out-staying our welcome and then having to rent. I was told by a friend who works in a bank I couldn't even get a 5k loan without having income, are you saying I could still get an 80k loan over 10 years while unemployed? I also thought all loans had to be paid over 60 months? It's hard to save anything when you have no income so did you mean I'd have to wait to get a job before I could get the loan or save?

 

[phoenix53]

Thanks. Some of that sounds great if possible. I'd hate to let the house go so I share some of your thoughts, especially about out-staying our welcome and then having to rent. I was told by a friend who works in a bank I couldn't even get a 5k loan without having income, are you saying I could still get an 80k loan over 10 years while unemployed? I also thought all loans had to be paid over 60 months? It's hard to save anything when you have no income so did you mean I'd have to wait to get a job before I could get the loan or save?

I read it as take a loan out now while you are employed and then use your redundancy to make repayments on the loan until you get another job. Right or wrong I don't know, but that's how I read it.

 

[dubdub123]

I read it as take a loan out now while you are employed and then use your redundancy to make repayments on the loan until you get another job. Right or wrong I don't know, but that's how I read it.

Yeah that's what I meant. There's obviously risks with any approach here but holding onto your lump sum to cash flow yourself for a year or two while you secure further employment is one option that may give you some breathing room.
While you're working now you could approach lenders for personal loan to see what you might be able to get. Avant do 10 year loans and you can overpay as you like.

Do you have any other savings that you can dip into, and you could build them back up? anything you could sell eg a car? Is there anyone else in the household that could pick up some work ?

If it was me I'd really try to get it over the line somehow so as not to end up renting which would v quickly deplete savings.

 

[Bronte]

Hi all. I am being made redundant in August. The timing could not be worse. I am the sole earner in the family and we just sold our family home this month and would have been moving into our new home in November/December time frame. We are currently living with family because the new house is not built yet and we only have the deposit on it, no contracts signed yet. The old house was paid off so we only needed a 20% mortgage, (~€80K) for the new house. I haven't spoken to the bank yet but is it impossible now to get that? I was told even if I got a new job immediately the bank would not give me a mortgage until after a 6 month probation period. I dont know what I am going to do.

Rethinking this

- sole earner
- living with family (which will probably not end well)
- potential new home not being completed until well into next year
- no contracts even


Instead of hurrying into this, would it be better to rent for a time, get a job and then start again. How much is the new build? There will be stuff to do too, furnish it, gardens driveway - unless it's turn key

As a side note, I wouldn't be too happy with you moving in with no actual end date. How many of you are in with 'the parents'? Is is plain sailing, how long has it been. Are ye all happy campers.

Just a few thoughts .....

 

[Poormans]

Thanks all. Its plain sailing family wise thankfully but its part of my nature to want to be independent and get our own place so that is my goal. I think we are going to focus on getting a new job and get over that probation period asap until the house company come looking for us to sign contracts and if that happens then we will let the house go and not put pressure on ourselves. Its a shame esp with how hard it is to get a house these days.

 

[Bronte]

You never know Poormans but this might turn out to be a wise decision.