to think maternity leave should be an exception!

[bubbleymummy]

DH and I are trying to buy our first home. We've been shopping around for different mortgages but the one with the best rate won't give us the full amount we need because it won't take my new job into consideration or my materity allowance for last year.

I'm self employed, went on maternity leave last feb. I received maternity allowance until November and then just got a new part time job at the start of this month. (in addition to my self employment.) The bank won't accept my income from my new job because I haven't been working there for six months AND they only took my earnings for last year up to feb and didn't include mat allowance so it really isn't an accurate representation of my earnings.

So, is it unreasonable for them to stick to this 'six-month' rule when the person has been on maternity leave?

[SpicedGerkin]

They can do what they like they are lending you money.

If they want to offer it with the condition you roam the high street in a chicken suit, they can.

You on the other hand don't have to say yes.

[feedtheyakandhewillscore]

They did the same to me. Wanted me to say I didn't work rather than take into account my self employment and maternity leave. They even sent a form for me to sign that ' I am entirely dependant on husband for income!'

needless to say we went somewhere else!

[IsItMeOr]

With all the dubious lending decisions that mortgage-lenders have made in the past few years, effectively encouraging people to get themselves into worrying financial predicaments, I would honestly say you should think carefully about why the bank is doing this, as it could mean you would be wise to wait a few months before taking the plunge.

[Bunnyjo]

I can see why you're annoyed bubbleymummy, but I agree with SpicedGerkin.

At the end of the day the bank/ mortgage company are lending you money and they can set their lending criteria to what they see as being minimal risk.

Good luck, I can imagine home buying in this climate is more stressful than usual.

[bubbleymummy]

ok - I know they can do what they want but I'm just asking if you think it is unreasonable/fair. We've been accepted elsewhere so its not the end of the world but I would prefer the lower rate and just seems a bit U to just deduct 2 months of income from last year without taking into consideration that the only reason I wasn't working was because I was on maternity leave.

ISITME - we pass no problem on the affordability criteria but this particular bank also do multiples of income and that is where we fall short by just a bit. I means literally if I had one month extra income last year counted then we would be OVER the amount we want to borrow so there really is very little in it.

[SpicedGerkin]

Of course it's fair, they don't have to lend you money!

[ilovemydogandmrobama]

Of course it's unreasonable, but seems to me that the criteria would also apply to men who haven't had stable employment, but as you say, the reason for the lack of income is directly due to maternity leave.

Banks have now gone the other extreme since some have been bailed out by the tax payer.

I'd ask them to reconsider the circumstances. Politely ask if you could speak to the branch manager or someone who can make these decision and say that the reason for your income needs to be explained and they have discretion to make exceptions.

[IsItMeOr]

Fair enough bubbleymummy - I didn't read your OP properly and missed the part where you had lots of other offers, just wanted this cheaper one (who wouldn't!). I worry about some of the mortgages families have themselves tied into. Will take my soap box elsewhere!

Good luck buying your house - it is very exciting and confusing at the same time!

[OtterInaSkoda]

I think they're being reasonable, I'm afraid. You've not proven yourself to them yet, incomewise. YANBU to be pissed off though.

[bubbleymummy]

no problem ISITME - we have friends who bought houses at the peak and are tied into ridiculous mortgages with negative equity . Very scary and something we definitely want to avoid!

Otter, I could understand that if I was only producing one year of records but they have all my previous year's records of self employment - they can see what I was earning in the years without maternity leave AND I now have additional income on top of that!

ILOVEMYDOG, I may actually do that. It would be a shame to miss out on a good rate just because I'm less than one month's earnings off...

[minipie]

Actually I have a friend whose mortgage lender is being even more unreasonable.

She's been in the same job for 5+ years. Tried to remortgage with the same lender, while pregnant. (She is planning 6 months off then return to work, same pay etc).

She got told she couldn't have a remortgage because she might choose to leave work after having the baby.

Yes of course she might. But so might every other person in the world choose to leave their job. Surely they can't say it's more likely just cos she's having a baby - when she herself says she's going back?

[bubbleymummy]

That's awful minipie. Really unfair!

[OtterInaSkoda]

bubbley - do you have a mortgage broker? We used one when buying our first home four years ago. She was bloody brilliant and (ahem) creative without being dishonest about our finances.

[MillyMollyMoo]

The problem is everything has tightened up dramatically over the past 24 months and rightly so, they could be doing you a massive favor making you wait.

[bubbleymummy]

Not really MollyMoo - we know we can afford it - the mortgage will actually be the same as our current rate which we've been paying for the last 3 years!

[bubbleymummy]

oops - current rent.