Obtaining mortgage during period of unpaid leave

hugheskevi

Just wondering if anyone would know the likelihood of obtaining a mortgage based on characteristics below. This is the position my wife and I expect to be in about 3 years from now and appreciating lending criteria can change, I would be interested in knowing for planning purposes whether obtaining a mortgage would be possible as things stand today. We don't expect to need a mortgage, but you never know how things might turn out so it is something I'm considering as a potential option if it were to be desirable.

• Married couple, both aged 46, no dependents
  
• Both been on unpaid leave for previous 2 years, during which we would have been traveling so would have had nil income.
  
• No adverse credit history (not even a missed payment), but due to traveling there would be little credit activity for previous two years (just a couple of joint bank accounts kept in credit, and couple of credit cards being fully repaid each month).
  
• Would be seeking a mortgage to purchase a house prior to returning to work, so no salary would be paid before the mortgage comes into effect (and no other sources of income, we would have been living from savings)
  
• Employer could provide evidence of unpaid leave status and salary. However, we plan to buy a house before returning to work, so at the time of house purchase I would not expect to have agreed a return to work date.
  
• House price would be around £450K. Amount borrowed would be under £100,000. Both my and my wife's unpaid salary level would be around £70,000 p/a each.
  

I anticipate that the lack of evidence of income would be quite difficult for mainstream products and the borrowing amount not worthwhile for more specialist lenders (or would be a high interest rate), so it would be necessary to return to work before any mortgage application would be made, but would be grateful for any more informed views. Thank you.

Thrugelmir

Seems somewhat vague to say that you won't have a return to work date agreed before purchasing a property. Under your employers long term unpaid leave policy presumably there are defined conditions and terms as to whether your employment rights are guaranteed. 

MWT

There are lenders who will approve based on a signed contract and confirmed start date so for a relatively modest amount and a low LTV I would hope you'd be OK, but it is certainly one for a good broker to handle at the time...

hugheskevi

Thrugelmir said:

Seems somewhat vague to say that you won't have a return to work date agreed before purchasing a property. Under your employers long term unpaid leave policy presumably there are defined conditions and terms as to whether your employment rights are guaranteed. 

Terms would be return at some point within 2 years of unpaid leave starting, else employment is automatically terminated.

K_S

@hugheskevi At the very least, in the circumstances described, I would expect that the lender will need sight of an employer letter confirming a firm return to work date and salary upon return.

Once you've rejoined and have one payslip, there should be plenty of mainstream choices.