Can redundancy payments be used as a deposit?
To address this question, you must consider the following.
What is the eligibility criteria?
- You need to show that you have held the payment in your account for the last 3 months.
- You will need a letter confirming your dismissal or termination, clearly indicating that you were made redundant.
- Depending on the lender you may also need to show that you have genuine savings separate to your redundancy payment; but this is not all lenders. We can help you find the one that will just use your redundancy payment.
- You need to be in your new role for more than 3 months, or be within the same industry.
How much will I be able to borrow?
As long as you can show that you are in a new job and have a clear credit history, the usual bank rules will apply to how much you can borrow:
- You may be able to borrow up to 95% of the value of the property.
- You may even be able to borrow the total purchase price of the property plus costs, but using a security guarantor on your loan.
Finding a lender that will allow you to use your redundancy payment could mean been able to get into your new home faster! Let us help you turn a time that can often be difficult, into something seamless! Contact us today to see how we can help you do so!