Remortgaging and sickness absence

GripesOfWrath

I'm currently in the middle of remortgaging (joint mortage with partner - have been with a different lender for 6 years but they aren't really offering any incentive to stay with them so...), and have a bit of a concern: the proposed lender has just called querying that I'm off sick at the moment and have been for the past three months (I do fully intend to return to work within the next month, when the dr declares me fit to do so....)

How likely is this to affect their decision to lend? Have to admit, it's a worry...

Let_Us_See

if your illness is just an isolated event then you should have no worries.

kingstreet

Did they ask about your income during illness, such as how much is paid and for how long?

They may feel your income may be reduced or end in future and may write to your employer for a reference to find out.

GripesOfWrath

No, they didn't mention any of that (from the bank statements and P60 they could tell I was on full pay-) I'll be on full pay until I go back as far as I know. Got me worried now: my employer is a notoriously slow moving beast (public sector!).

kingstreet

In which case, it's six months full pay, followed by six months half pay as long as you have the required service. The lender may wish to check with your employer, using the reference I mentioned.

As you've been off three months, they may feel nervous at granting a mortgage when your income is not necessarily constant after nine months.