getting a mortgage while on sabbatical from work

Nenen

Hi. I'd be grateful for some advice/opinions. We sold our house last year fully intending to buy somewhere else but circumstances led us to rent, which we have continued to do. With the current house price situation we became increasingly keen to wait for prices to drop a bit before getting back on the 'ladder'. We did have a MIP several months ago, although this is now out of date. We have banked the equity and kept saving too so will have a substantial deposit..

I have now been granted a one year unpaid sabbatical from my job to undertake further study (my choice) starting in September. We had put our thoughts of house hunting on hold while I do this but (s*d's law being what it is) have just seen a lovely house at a bargain price (less than it sold for 3 years ago).

My question is, will we be able to get a mortgage that takes my salary into account when I'm about to have this unpaid sabbatical? My employers have written me a letter stating that they are holding my job open for me and technically I suppose I'm still under contract to them... just not doing any hours for a while. Someone suggested I don't need to tell the BS about my forthcoming sabbatical when we arrange the mortgage as I am in receipt of current wage slips but I am very reluctant to do anything underhand and certainly wouldn't do anything illegal. We wouldn't be able to get a large enough mortgage on my dh's salary alone but have budgeted for me having this year off and could pay a mortgage if we were given one.

Does anyone have any idea how a BS would view this please?

Nenen

Just thought to add.... I'm a teacher so usually considered well for mortgages and this sabbatical will be for one academic year.

lisyloo

Employers generally work from acutal income.
They are not keen on people paying it from savings.
I really don't know why as some people have substantial assets but can't get a mortgage.

I suspect you'd have difficultly, but really you should approach a borker to find out.
They will know which companies may be sympathetic or whether there are any other options e.g. guarantor from parents?

I think that not telling the truth is fradulent and wouldn't advise it.

Nenen

lisyloo wrote: »

Employers generally work from acutal income.

Did you mean lenders generally work from actual income?

lisyloo wrote: »

I think that not telling the truth is fradulent and wouldn't advise it.

I certainly wouldn't lie or make false claims but if asked whether I am in permanent employment I can truthfully say 'yes'. If asked my salary for the last year I can truthfully declare it (and have wage slips to prove it). What they might not ask is what I think my salary will be next year... if they don't ask this would it be fraudulent just to keep mum?

happybroker

yes it would i'm afraid

just to expand, you will be asked the question are you expecting a change in income?

Nenen

happybroker wrote: »

yes it would i'm afraid

just to expand, you will be asked the question are you expecting a change in income?

Thanks for that info Happybroker... I had a feeling they would ask me a question I would have to answer like that. Any idea how lenders might view a sabbatical with a guarantee of restored income in one year's time?

I'll also try going down on bended knee to our previous mortgage provider... hopefully 26 years of good payment counts for something!