On gardening leave, Mortgage possible???

stone_circle

I've just been told I am being made redundant. I plan to start my own business on the proceeds of the payout. I currently rent and would like to buy, but am aware that it will be difficult to get a mortgage in the current climate when I start the business. My exit date is end of Jan followed by two months gardening leave.

My question is, can I apply for a mortgage? Will I have to disclose the fact I'm leaving employment at the end of March?

opinions4u

stone_circle wrote: »

I've just been told I am being made redundant. I plan to start my own business on the proceeds of the payout.
Good luck. Research what grants you can get. I hope you succeed.

I currently rent and would like to buy, but am aware that it will be difficult to get a mortgage in the current climate when I start the business.
Correct. Why would somebody want to lend to somebody who's income is based on a business that hasn't been trading?

My question is, can I apply for a mortgage?
Yes. But you won't get one. Those who work in the industry may correct me on this assumption, but I cannot see any way you will be lent money.

Will I have to disclose the fact I'm leaving employment at the end of March?
Yes. It would be fraud not to and you could go to prison.

Build up the income streams from your business. Save for a deposit and wait.

dimbo61

Mortgage lenders like to see 2/3 years of accounts for your company to prove you can afford the loan you are asking for.
So you are stuck renting ( which might not be bad in the current climate )
So save save and save a bit more.
Move to a cheaper rental property ! and concentrate or making your new business a success.
Having a big deposit of say 40/50% and start off with a smaller property and overpay on the mortgage.
Consider offset mortgages when you do buy and GOOD LUCK