Gardening Leave & Applying for a mortgage

kazimojo69

Hi

apologies if this seems a little rushed - but I have to make a decision on this today to my employers.

I am being made redundant on 30th Sept.

My husband and I are looking to buy a house in the summer (new mortgage) and may need to relocate now.

I have been offered PILON - and can leave at the end of June and paid PILON and redundancy in my July pay. I can also start a job straight away as well.

As we are wanting to apply for a mortgage in the next 3 months or so - if I ask for Gardening Leave (and therefore receiving monthly pay statements) would this effect a mortgage application?

I am confident of getting another job (as something is already in the pipeline - but may not be able to start until Sept/Oct) and we have been renting for 4 years (mortgage would be cheaper than rent).

Any advise either way would be appreciated. I need to decide what I am doing and let work know today.

The_J

You won't be able to use your income until a new job contract is offered and signed.

getmore4less

If you go on garden leave and stay employed there is the risk they withdraw the redundacy. If you resign to get another job they don't have to pay it unless within the statutory notice period and you counter notice.

Clean break same money and you can claim JSA.


failing to disclose you employment status would be risky and could give you issues with future applicatons

Dave_Ham

Without taking a few risks and/or being less than honest there is not really a way around this.

Given the time to buy, may be worth you taking a 6 month tenancy on and then getting new job offer and still ensuring you get the maximum monies you can and then start looking for a house in 4-6 months time...

Good luck