How to Get a Mortgage After Being Made Redundant in the UK
Can You Get a Mortgage After Being Made Redundant?
Yes — but it depends heavily on your current situation. Lenders care most about what’s happening now, not what happened six or twelve months ago. If you’ve found new employment, have a solid deposit, and can demonstrate stable income, redundancy doesn’t have to be a dealbreaker. The challenge is that most high-street lenders will scrutinise your recent employment history closely, and some will flat-out decline if you’ve only just started a new job.
What Do Mortgage Lenders Actually Look For?
When assessing affordability, lenders focus on:
- Current employment status — are you employed, self-employed, or still out of work?
- Time in your new role — many lenders want at least three to six months of payslips
- Deposit size — a larger deposit (15–25%+) reduces lender risk considerably
- Credit history — missed payments during your redundancy period can cause problems
- Income stability — contract workers and the self-employed face extra scrutiny
Key point: Lenders aren’t penalising you for being made redundant — they’re assessing whether you can afford the mortgage today.
I’m Still Unemployed — Can I Get a Mortgage?
Realistically, no. Without a verifiable income, no regulated UK lender will offer you a residential mortgage. It’s not just policy — lenders are required under FCA affordability rules to confirm you can meet repayments.
If you’re receiving a redundancy payout, that won’t count as income, though it can boost your deposit significantly. Use that time to stabilise your finances rather than rush into an application you’re likely to fail.
How Long After Starting a New Job Can I Apply?
This varies by lender:
- Most high-street lenders (Halifax, Nationwide, NatWest etc.) typically want three to six months of payslips from your new employer
- Some specialist lenders will consider applications from day one of a new job — particularly if you’re in a skilled profession or moving to a similar role
- Probationary periods are a red flag for many lenders; ideally, wait until you’ve passed yours
Example: If you were made redundant in January, found a new job in March, and passed your three-month probation in June — you’d likely be in a reasonable position to apply by September, assuming your finances are otherwise in order.
What If I’m Now Self-Employed?
This is where things get more complicated. Most lenders want two to three years of self-employed accounts before they’ll consider you. If you’ve gone self-employed following redundancy and have only one year’s accounts, your options narrow considerably.
That said, some lenders — particularly those accessible through mortgage brokers — will look at one year of accounts if your income is strong and consistent. A specialist broker is essential here.
Will My Credit Score Be Affected?
It might be. If redundancy led to:
- Missed payments or defaults
- Using a large proportion of your credit card limit
- A personal loan you struggled to repay
…then yes, your credit file could be impacted. Check your report with Experian, Equifax, or TransUnion before applying. You’re entitled to a free statutory report from each.
Tip: If you have any missed payments on record, write a notice of correction on your credit file explaining the circumstances. Lenders can see this when they run checks.
Does the Size of My Deposit Matter More Now?
Absolutely. A bigger deposit does two important things:
- It reduces the lender’s risk — at 75% LTV (loan-to-value), you’re a much safer bet than at 95%
- It opens up better mortgage rates — which reduces your monthly repayments and improves affordability calculations
If your redundancy package was substantial, putting more of it into your deposit is often the smartest move. Even going from a 10% to a 15% deposit can meaningfully improve your options.
Are There Any Government Schemes That Could Help?
A few worth knowing about:
- Shared Ownership — buy a share of a property (typically 10–75%) and pay rent on the rest. Lower mortgage needed, lower deposit required. Available through housing associations in England.
- Mortgage Guarantee Scheme — allows lenders to offer 95% LTV mortgages with a government guarantee. Useful if your deposit is small, though your income still needs to stack up.
- MoneyHelper (moneyhelper.org.uk) — the government-backed financial guidance service. Free, impartial, and genuinely useful for understanding your options before you speak to a lender.
Note: Help to Buy equity loans ended in March 2023 and are no longer available.
Should I Use a Mortgage Broker?
Yes — particularly in your situation. A whole-of-market broker has access to lenders you can’t approach directly, including specialist lenders who are more flexible around employment gaps. They know which lenders will consider day-one applications, which are lenient on probationary periods, and which want two years of accounts.
Brokers are regulated by the FCA, and many offer a free initial consultation. Given the complexity of your situation, trying to navigate this alone is likely to result in rejections that further dent your credit score.
Quick Summary: Your Checklist Before Applying
- Secured new employment and ideally passed your probation period
- Have three to six months of payslips from your new role
- Checked your credit report and addressed any issues
- Saved as large a deposit as possible (aim for 15%+)
- Spoken to a whole-of-market mortgage broker
- Reviewed your options via MoneyHelper if you need free guidance
Disclaimer: This article is for informational purposes only and does not constitute regulated financial advice. Mortgage products and lending criteria change regularly. Always speak to a qualified, FCA-regulated mortgage adviser before making any financial decisions.