Will a Career Gap influence my mortgage application?
Career gaps are becoming ever popular with people based in the UK and it can be a great idea for you going forward. So, why should you let it have a negative effect on your mortgage application? Read on to find out how it might affect you in your house buying process!
When you’re completing your mortgage application the main objective is to prove that you’re going to be able to sustain your mortgage repayments for the duration of your mortgage term. So, why should a career gap harm that? The truth is that is doesn’t have to, and it can actually be a real benefit for your career and personal life. Let’s find out more.
The pros of having a career gap
Career gaps can be a great way to recharge your batteries after being in the workplace for a number of years. When you’re filling out your mortgage application, a lot of mortgage lenders tend to look for whether you’ve had a career break with a purpose and a good explanation. If you’ve done this and have since returned to work with a sustainable income then you shouldn’t have too much to worry about. However, if you’re unsure that you don’t quite fit this bill, then don’t panic. There’s a way to find a deal for you that works.
‘So, I’ve just taken a career gap. What should I say to prospective lenders?’
The impact of your career gap on your mortgage application is going to be largely contextual. So, we recommend that you explain to your potential mortgage lenders why you decided to take one. Then, explain whether the job that you currently have is sustainable and can provide enough income to pay for the mortgage that you want. After all, this is going to be the deciding factor!
If you have spent your career gap at university or completing a higher education course as a means of improving your income this is likely to improve the chances of your application being accepted. This may also look better if this has followed previous spells of employment, where you had previously paid housing arrears that had in turn given you a good credit score.
Similarly, if you've been unemployed during your recent career gap and have spent your time travelling with no prior occupational experience, it should still not be looked at unfavourably on your mortgage application. As we’ve already said, when you’re completing your mortgage application the main goal is going to be to show that you can afford to buy a home & meet future payments for the term of the mortgage.
How we can help:
The truth is that the best way to convey your career gap on your mortgage application will be down to the context and your own, personal situation. If you’ve got any further questions regarding your own personal situation don’t be afraid to contact one of our mortgage experts. We can provide you with the answers to how your career gap can influence your mortgage application and which lenders will be willing to take your situation into account.
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