Changing mortgage deals while out of full time employment

jaygatsby

Hi everybody

I am purchasing a property at the moment and taking out a mortgage for it. I am currently working full time but in 1-2 years, I am planning to take a year out of work to pursue a Masters degree. I have budgeted carefully for mortgage repayments for the period I am out of work, however I am wondering whether I need to let my bank know when I stop working and start my Masters. I was under the impression that as long as I am making my monthly payments, they don't really care if I am in full time employment or not.

Also, what happens if during that period I am trying to change my mortgage deal (i.e. I find a cheaper rate)? I imagine that if I switch providers (or perhaps even if I stay with the same one?) they will want to do a full check on me and I am not sure they would agree to lend to me if I am at that point not working full time. Does anyone have any more information about this?

Thanks

sophievenusdoom

You will need to be honest at the outset about your plans to take a year out. However, I don't see it being a problem if you have savings to make the monthly repayments. It might be best to check with your mortgage broker/lender

dimbo61

With rates as low as they are why not fix for 3 or even 5 years and build up savings to cover payments while at uni.

No need to tell anyone your buisness