Getting a mortgage after redundancy is harder — but far from impossible. There are specialist lenders who look at your current situation rather than just your credit history. Here's everything you need to know.
- Whole-of-market brokers see deals comparison sites don't carry, especially for non-standard income
- Start remortgage shopping up to 6 months before your fix ends — you can lock now and switch if rates fall
- Compare total cost over the fixed period — rate plus fees, not headline rate alone
- Get a soft-search decision in principle first — it costs nothing and reveals problems early
The Details That Decide Outcomes
Affordability rules changed materially after the 2022–23 rate cycle. Lenders now stress-test your payments at a rate above your actual deal, and your outgoings matter as much as income. Clearing a £300/month car payment can add £15–20k to a mortgage offer.
Get your decision in principle before falling in love with a property. It's a soft-search estimate of your borrowing power that strengthens any offer you make, and it surfaces credit-file surprises while there's still time to fix them.
Timing your remortgage matters more than most borrowers realise. Most lenders let you secure a new rate up to 6 months before your current deal ends — if rates rise you're protected, and if they fall you can usually re-lock lower before completion.
Can I Get a Mortgage After Redundancy?
Yes. While high-street lenders may decline your application, specialist and adverse credit lenders consider applications from people who have experienced redundancy. The key factors are: how long ago it happened, your current financial situation, and the size of your deposit.
How Long Do You Need to Wait?
The impact of redundancy on your mortgage application typically diminishes over time. Most specialist lenders will consider applications from 1-3 years after the event. High-street rates become accessible after 6 years when the event drops off your credit file.
Best Specialist Lenders (May 2026)
| Lender | Min Deposit | Time Since Event | Rate From |
|---|---|---|---|
| Kensington | 15% | 1 year | 5.83% |
| Precise Mortgages | 15% | 1 year | 6.02% |
| Pepper Money | 15% | 1 year | 6.17% |
| Together | 25% | Day 1 | 6.54% |
| Aldermore | 20% | 1 year | 5.84% |
How to Improve Your Chances
- Wait as long as possible after redundancy — lenders view time as a sign of recovery
- Save the largest deposit you can — 15-25% will unlock more lenders
- Rebuild your credit score — register to vote, pay all bills on time
- Use a specialist bad credit mortgage broker — they know which lenders will accept you
- Avoid any further missed payments, defaults or County Court Judgements
FAQs
Should I choose a 2-year or 5-year fix?
There is no universal answer. A 5-year fix buys certainty; a 2-year fix costs less if rates fall. Check the total cost including fees, not just the headline rate.
What is loan-to-income and how much can I borrow?
Lenders cap borrowing at 4.5x income for most applicants. Some banks stretch to 5.5x for qualifying professions or joint incomes over £60,000.
Do I need a mortgage broker?
You don't have to use one, but a whole-of-market broker sees deals that never appear on comparison sites, and knows which underwriters accept your income type. Many are fee-free and paid by the lender.
What happens when my fixed rate ends?
You move to the lender's standard variable rate, which is almost always worse value. Most lenders let you lock a new deal up to 6 months ahead.
Can I overpay my mortgage?
Most fixed deals allow 10% overpayment per year without penalty. Overpaying early in the term saves the most interest.
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