What to do/ Juggling Act

whattodo20202 wrote: »

I looked into a job change, even went for a few interviews, but they were looking for a degree qualification for someone at my level. Whereas I only have experience. 
Conscious of the 3.5 salary multiplier for mortgages, I decided to stay where I was. 

I finally had enough money saved and received approval in principle last week. 
But I have now found out that the covid subsidy my employer put me on last month (without any notice) is going to impact on progressing my mortgage any further.
Banks are telling people to wait, not allowing draw downs if you're in receipt of the subsidy. 

Naturally, the company I work for is severely impacted by the pandemic. I can't really see how they are going to trade out of it.And given the above, I'll likely be one of the first on the chopping block. 

 

Hi op,

It sounds like you are trying to do all the right things op but you are not seeing the fruits.

It's a pity that you are having such sleepless nights when you only got your mortgage approval last week. That's a really big step. However, as the previous poster said it must feel like the rug has been pulled out from under you.

But.... think about this rationally for a second.

You still have a significant amount saved = your efforts have not been wasted

You are worried about your job security = might be a blessing in disguise that your mortgage is on hold for a (potentially short) while. Imagine how you would feel if you couldn't pay your mortgage repayment!

I highlighted the section of your post regarding other job opportunities. It sounds like your current job is on a road to nowhere regardless of COVID. If you are not happy there - plan to get out.

I also don't get the impression you *exhausted* this option. Most people are *always* on the look out for a better job elsewhere- it's how you get more money. Loyalty is not rewarded in the workplace.

If the lack of a degree is holding your earning potential back would you consider doing something about this? Could pointing some of your savings in this direction pay dividends in a few years?

Be patient Op - if you are a planner keep thinking long-term. Things in life don't usually go our way the first time round.

How about giving yourself a few days off, draw up a few options, go for a really long run to tire yourself out and get some sleep! All the best

I don't see your predicament in the negative terms you do. Maybe this disruption to your plans is a blessing in disguise and will give you the chance to "reboot". I'm old enough to remember the recession that hit in 2008/2009 and how it decimated many people's wages. That led to some people running into difficulties repaying their mortgage. It also brought the overheating property market to a shuddering halt and left many people in negative equity. We don't yet know what effect the pandemic will have on property prices or wages but I have a strong suspicion it will cause both to drop. The housing market was showing signs of overheating again so this will probably slow things down. If you take some steps in your own career, you can get back to where you were before the pandemic hit but in a better place. It looks like you may have had a lucky escape - you'd have a completely different set of problems if your job went or your wages get slashed. Being shackled with a mortgage and possible negative equity is not what you need right now.

Even if your job survives, your workplace sounds like somewhere you'd be better off moving on from. Your obsession with buying your own place was going to shackle you to it. Would that really be a good thing? I bought my first home as a single person and the novelty of owning my own place soon wore off when the bills started coming in. Don't get me wrong - I never regretted buying the house and it turned out to be a good buy. What I'm getting at is that owning it as a singleton turned out to be a lot harder than I ever thought it would be. You're the one who has to foot all the bills that come in and if something goes wrong, you can't ring the landlord. Money was very tight at times in the first year or two and I thought I'd never take a holiday again or to live a life where the next payday couldn't come quickly enough. Chatting afterwards to friends who'd also bought on their own, they told me that they found the first couple of years very tough too. The average timeline for things to get easier seems to be 2-3 years after getting the keys. What this all translates into is that your ambition to upskill after buying your own home might be a bit ambitious. Homeownership is security in some ways but it's an enormous burden in others. Sometimes home ownership is a case of "be careful what you wish for". With your circumstances, I think it's a warning to be heeded.

I see this as a golden opportunity for you to do something about your lack of qualifications. Without sorting those out, you're going nowhere. With what I wrote about finances when you first buy a home, you might not have the chance to do this upskilling if the fees are high. For now, you have the great advantage of not being shackled with a mortgage and all the bills that come with home ownership. You're in a house-share which is as cheap as it gets and you don't have a car. Your bank balance is healthy so you have a financial cushion. Would it not make sense for you to upskill now and get those qualifications you need? It might put your house-buying prospects on hold for a couple of years but would that really be catastrophic? Look at the long-term benefits. You'll be more employable, earn better wages and be able to move jobs in the way you can't right now. With the way you're going now, you'll probably still be on €45k in 10 years time and stuck in your current job.

This all sounds really daunting for somebody like you, who likes their life to be predictable. I don't subscribe to the theory that things happen for a reason but I see your situation as a way to get you out of the rut you're in and to make things better.