Do I need a job to get a mortgage?

Q I am currently not working, having taking a few months gap to travel and recharge, but have now been offered a good job in another part of the country. I need to relocate to take up the job. I have found a house to buy, made an offer and hope to move in a week before starting the job. I have approximately 60% of the house cost as capital and require a mortgage for the balance.

However, every mortgage lender that I approach says no. They have all said that the amount I wish to borrow is adequately covered by my new salary, all are happy that I will retain £20,000 in savings after buying the house, but because I am currently without a job they cannot give me a mortgage despite the fact that the first payment will not be due until after I have started work. There must be some way around this trap that penalises those who are currently not working.

RB

A Mortgage lenders are a cautious bunch so I'm not entirely surprised that those you have approached have been put off by the absence of a regular income. Nor am I surprised that they are not satisfied by the promise of a future ability to repay.

Indeed, you will probably find that even starting work is not enough to convince them to give you a mortgage since lenders typically want to know that you have successfully completed any probationary period and so are confirmed in your new job.

So unless you have the resources to buy a property without a mortgage - by ploughing all your savings into the purchase, for example - renting somewhere until you are in a position to get a mortgage is likely to be the only answer.