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A mortgage with a gap in employment

Written By:
Myles Robinson - Expert Finance Advisor

Posted: Feb 15, 2023

Mortgage with a gap in employment

If you have a gap in your employment history, especially if it is recent, it may be a concern that it could cause problems when applying for a mortgage. However, this does not always have to be true.

Speak with our mortgage brokers, we can then introduce you to mortgage lenders who will work with an employment gap.

You can read our guide to learn if it is possible to obtain a mortgage with a gaping in your employment history.

We also explain how non-continuous employment can be explained to a mortgage lender. This could have an impact on your application for a mortgage.

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Is it possible to get a mortgage if you have a gap in employment?

Yes, it’s possible. When a mortgage lender reviews a loan application, they are looking for your ability to pay the monthly mortgage repayments over the loan term.

Consistency is a key factor for mortgage lenders. A person who has been with the same employer for ten years will be considered less risk than someone who has had a gap in employment. However, they won’t automatically consider employment gaps a problem in every case.

All mortgage lenders uses their own guidelines and internal measures to evaluate an application. It doesn’t necessarily mean that the same bank will reject you if you have gaps in your employment.

If you have gaps in your records, it can be difficult to determine which banks will be more favourable to you.

An experienced mortgage broker can help you navigate this tricky terrain. You will save time and effort by having an experienced mortgage broker on your side. They will also know which mortgage providers are more favourable to such applications.


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What is considered a gap in employment?

A gap in employment can be defined as any time you are absent from your job. These are not usually considered to be a problem from the perspective of a mortgage lender if they are frequent, long-lasting or unexplained. Below shows how mortgage lenders view employment gaps according to length.

Your employment history must be at least three years old. If there are gaps between these periods, lenders may not consider them. They want older consistency.

Many of us will experience a gap in our employment history. This is normal.

  • Maternity leave
  • Time off because of an accident, injury, or illness
  • Caring for a relative who is ill
  • Return to school / full-time study
  • Only one-time chance to travel
  • Redundancy

These are all very common life events. For example, if you return to school, your qualifications could make you more desirable to employers and give lenders confidence that you will have a consistent track record of employment.

What could a gap in your employment mean for a mortgage application?

A gap in employment may be a red flag for lenders, and they might decline your application depending on the circumstances. This is the worst-case scenario.

A prospective lender may want to look deeper in many cases, like the ones above, to determine why the gap exists and how it compares to your work history before making a decision.

One of our advisors will review your employment history and identify any gaps. They’ll also find out why lenders aren’t doing the same. You’ll be more likely to get the mortgage you want.


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How can you explain the gap between employment and mortgage payments?

It is best to document the events and include supporting evidence to clarify any gaps in your employment record. “Be prepared” is the Scout motto.

To use the same example of returning to full-time education, provide a copy of any certificates or qualifications you received after the course is over. You can also provide any hospital notes or doctor’s notes detailing what happened if you were absent from work because of an injury.

Your application will be more successful if you provide proof bank statements, good credit score etc. During this time, you must pay all financial obligations.

It would be much more beneficial if you met with a mortgage broker to discuss any gaps in your employment instead of going directly to a lender.

Gap in employment caused by COVID.

Although lenders love consistency, many people couldn’t do so during the coronavirus crisis. Understandably, you may be concerned about your mortgage application if there has been a loss of employment due to the COVID pandemic.

You’re still considered employed even if an employer has furloughed you. However, some lenders may be cautious about your mortgage application.

These are valid reasons your record has a gap if you are self-employed or were previously employed and made redundant.

We will match you with a broker who has a good understanding of the best lenders in the current climate. They can also help you to document all aspects of your mortgage application to show your ability to pay the monthly mortgage payment.

Match you with a mortgage expert

Don’t worry if you have gaps in your employment history and are concerned about how it might affect your mortgage application. It doesn’t mean that your application will be rejected. There are many valid scenarios that lenders consider every day.

There are several steps you can take. Document the reasons for the gaps and provide as much documentation evidence as possible.

However, we recognise how important it is that you seek guidance from a mortgage broker with experience in applications with gaps in employment history.

They will know which lenders to approach and how to go about it. They will help with the mortgage process and ensure you have the option to the best mortgage loans available.

Our unique advisor-matching service helps you find the right professional to help you prepare your application. This will give you the best chance to get approval.

Submit an enquiry to arrange a no-obligation-free call with a mortgage specialist.


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Employment Gap Mortgage Lenders FAQs

Are there any gaps in employment that could affect joint mortgage applications

A joint application is more likely to be approved if one applicant has gaps in their employment records but the other has a stronger and more consistent employment history.

What happens if there are frequent employment gaps for contractors?

Most contractors will be deemed self-employed by mortgage lenders, and their work history will also be considered.

Lenders will consider applications that have regular gaps if they can provide evidence of previous and current contracts.

Contact us now for expert advice. We have specialist lenders with different lending criteria, our day to day aim is mortgage approval.


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