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Trouble getting a mortgage due to sabbatical

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My partner and I have just had an offer accepted on a flat.

I'm currently on a four month (unpaid) sabbatical from work. I have been with my organisation for 6 years and my job is guaranteed when I return in January.

Because I cannot demonstrate 6 months continuous paid employment, many lenders are refusing to consider giving us a mortgage. Those that are, are charging quoting interest rates.

It feels like I'm being punished for choosing not to take a salary for 4 months. The best outcome is that we are offered a mortgage that costs c.£100 per month than it otherwise would. The worst is that we don't get one at all.

We're very reluctant to pull out of the purchase and wait until June next year before trying again.

Can anyone suggest how I can convince lenders that to give me the rates they would have given me four months ago?

Comments

  • As I am sure you are aware, you have two choices:

    1. Continue with your purchase and pay the higher rate on your mortgage

    or

    2. Pull out of your purchase and wait until next summer before applying for a mortgage again. The risk being that house prices in that area may rise in the meantime.

    To be honest, I think you were a bit daft applying for a mortgage when you knew you had no income coming in
  • Yorkie1
    Yorkie1 Posts: 12,004 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Are you using a broker or trying this alone?
  • Lily-Rose_3
    Lily-Rose_3 Posts: 2,732 Forumite
    rodders71 wrote: »
    My partner and I have just had an offer accepted on a flat.

    I'm currently on a four month (unpaid) sabbatical from work. I have been with my organisation for 6 years and my job is guaranteed when I return in January.

    Because I cannot demonstrate 6 months continuous paid employment, many lenders are refusing to consider giving us a mortgage. Those that are, are charging quoting interest rates.

    It feels like I'm being punished for choosing not to take a salary for 4 months. The best outcome is that we are offered a mortgage that costs c.£100 per month than it otherwise would. The worst is that we don't get one at all.

    We're very reluctant to pull out of the purchase and wait until June next year before trying again.

    Can anyone suggest how I can convince lenders that to give me the rates they would have given me four months ago?

    I have to agree with the above poster that it wasn't the best idea to take 4 month unpaid leave when you intended to apply for a mortgage!

    Is your job 100% guaranteed when the sabbatical finishes? What was the sabbatical for anyway? It may seem intrusive of me to ask; but the thing is, the lenders will probably want to know this...
    Proud to have lost over 3 stone (45 pounds,) in the past year! :j Now a size 14!


    You're not singing anymore........ You're not singing any-more! :D
  • Talk to the lenders and show them proof of:
    1. Why you took sabbatical leave.
    2. Official written proof of guaranteed job for six years.
    3. Pay slips for few years back.

    This way you should be able to prove your case.

    The other option is to go in-branch to the bank where your money normally goes into with proof of the above and ask them for a mortgage. You may be pleasantly surprised by how accommodating they are.

    HTH.
    SECRET OF SUCCESS IN LIFE:
    Patience, patience & patience.
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