Refused a mortgage because I have only had my current job for 4 months?

gazimboLover

Hi All,

Here's the situation.

Currently got a mortgage with Skipton and we want to move house, so need to borrow more. (Never missed a payment btw.) Have to stay with Skipton or pay £2000 early repayment fee as we're on a 2 year deal.

Both my partner and I have full time jobs with a joint income of over £55k.

Now my partner is fine - it seems I'm the problem.

I started my own buisiness in January - long story short, it didn't work out, so I went back into full time employment in June.

Now I'm being told that I am ineligible for a mortgage because I need to have 12months employment history, which technically I have, but because some of it was self employment and this self employment wasn't for 12 months (they need 12 months accounts) I don't meet lending criteria.

Why should a previous employment matter? I'm in a permanent position now earning good money and have passed the probation period! Even if I had 12 months accounts, I barely earned any money - hence going back to full time employment so what would it prove!

Supposing my buiness went well and I earned 100k profit per month, but still went back to work, why would this have any impact on my mortgage - I wouldn't be earning that 100k anymore - just my current salary!

No wonder the housing market is having difficulties when they are turning people down who can clearly afford the payments! They will only lend us based on my partners salary until I've been in my current job for 12 months.

Rant over - what do you guys think/suggest?

Thanks,
Rick

Let_Us_See

Did you use a broker? There are lenders willing to consider from day one employment............ find yourself a broker.

gazimboLover

Hi,

If I go that route I'll end up having to pay the £2k early repayment fee to Skipton which I would obviously prefer to avoid!

kingstreet

Skipton criteria says;-

Employed

Applicants must be in continuous employment for at least 6 months (or 12 months for first time buyers).

So, it's wait until you meet the qualifying period for Skipton, or try another lender and pay the ERP. (However, some other lenders have this stipulation too, so be careful.)

ACG

File your accounts and give them to skipton?

James_B.

gazimboLover wrote: »

No wonder the housing market is having difficulties when they are turning people down who can clearly afford the payments!

You can afford them now, but clearly you are a higher risk than someone without such a patchy recent employment history, which is why lenders will be more wary of you than they would be of a similar person with a more constant employment history.

You may not like the fact that statistically you are more likely to lose your job than someone with ten years in the same company, but, all other things being equal, you are.

gazimboLover

Cheers for that.

yes I came to the same conclusion - really annoying though. As long as I've passed any probationary period that should be enough - I've been there 4 months, what does another 2 mean - no less likely to be the first out the door should the company go bust!

:mad::mad::mad::mad::mad::mad::mad::mad::mad::mad:

woodworm001

If it's any consolation we have had to wait six weeks so that we can supply another years accounts for my wife's business.

I can understand that they want to know the business is sound, but her 14 staff could get a mortgage with 6 months continous employment, but my wife has to have 2 years accounts - and who's likely to be the last one out of the door?

amnblog

gazimboLover wrote: »

Why should a previous employment matter?

It matters because that is what the Lender has told the regulator they will use as one of their qualifying measures.


The regulator does not allow them to say 'OK Rick - we see you point'