Mortgage and career break

mightywhites29111971

Hi

Just looking for a bit of advice. The wife and I sold our flat to buy another in November. We had our mortgage in place with Nationwide. The property we are trying to buy had problems with the lease which we have been trying to resolve and it seems to taking an absolute age. In fact it has taken so long our 6 month offer with Nationwide has now expired. We were told we would have to reapply. We have done this and have been declined because I started a career break in October and they state we do not have sufficient funds to cover the mortgage. We do have sufficient funds as I saved the money do we could afford me having this break. Our LTV to the new property is only 53%. Is this common practice and will I have to return to work, and lose the property we want?

_Andy_

Savings aren't taken as income by any lender.

Aeries

without knowing all your details, incomes, lending multiples etc its impossible to say if its doable at all, I would recommend your best course of action would be to speak to a whole of market mortgage adviser who will be able to tell you if its still viable to proceed with the purchase. Is your career break for raising a family ?

mightywhites29111971

It was to start a degree in ICT. Property is worth £435,000 and we have a deposit of £225,000. We have roughly £50,000 of savings. Our old mortgage was also with Nationwide and we never missed a payment. In fact we made overpayments. The wife earns £38,000 and so did I before my career break. Will this give us a chance of getting a mortgage?

_Andy_

No lender will do 5.5+X income so it's not going to happen I'm afraid. As stated before, no lender will accept your savings as income

opinions4u

What's the most you can borrow? Why not plug the gap with the savings?

Or are you saying you couldn't afford the payments if you did that?

Aeries

I agree its too much of a stretch on one wage, could you not compromise by going back to work full time and doing your degree through distance learning, my husband did that before he started his IT consultancy

property.advert

So before you had a stable job with a long history but even if you get another job, it will be on probation and you'll be bounced back again until at least another 6 months are up.

I think you'll have to rethink and go smaller or go to a broker who can get you out of this hole with a marginally non standard mortgage at a slightly worse interest rate.

If you started the career break in October, 4 months ago, and only a couple of months after getting this agreement, you must have seen that as a tremendous risk. I feel for you but either you swallow the cost now or eat the regret for longer. I'd pay and might fix for 5 years at around 3.69% for non standard with your LTV.

mightywhites29111971

Thanks for all the input. Looks like some deep thinking will be required