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getting a mortgage on mat leave

(9 Posts)
unimaginativename13 Sun 21-Feb-16 20:47:26

So my DP and I have decided that we would like to apply for a smallish mortgage with the savings that we have.

My DP earns enough for us to live on - tight - but possible to pay all the bills and a little left over.

I've been on SMP since Nov and didn't have any plans to return to work as would maybe just have some extra time off on DPs wages.

I realise however this probably won't wash when we apply for a mortgage so happy to lie about going back to work.

Anyone else been in this situation? In theory we are only applying for a mortgage that would be accepted on DPs wages anyway but don't want to take that risk and would like to use mine aswell.

I'm guessing they want proof from my current employer?

FishWithABicycle Sun 21-Feb-16 21:13:26

Can you borrow enough with just your partner's income?

If you say you'll be going back to work they will deduct projected childcare costs from your salary so it may not make much difference to what you can borrow.

Even if you use a letter from your employer instead of payslips they may want to see bank statements so I'm not sure that you'll be able to hide that you are on ML either.

Rainshowers Sun 21-Feb-16 21:58:28

I applied for a mortgage on mat leave. We were looking to move to a bigger place so were asking to increase our borrowing quite a bit. I told them I was on maternity leave, they asked if I was going back, I said yes, and they asked for a letter from work with my salary and return to work date. I told them our parents would be providing childcare, and wasn't asked any more questions.

As it was the sale fell through due to some survey issues, but the mortgage approval went through just fine.

unimaginativename13 Sun 21-Feb-16 22:14:48

I wouldn't be lying about being on mat leave but would be lying about returning to work.

I'm rather anxious about the letter from my employer.

LillyBugg Sun 21-Feb-16 22:17:22

I did this. Lied about my intention to return (said full time, also said family would take care of baby so no childcare costs). It all went through no problem. They based our calculations on DH's salary and what I was earning projected over the next year including mat pay. It was surprisingly easy.

Zampa Sun 21-Feb-16 22:21:35

I've recently been sorting out my mortgages whilst on maternity leave. I had to provide the normal financial info such as budget planners, bank statements and pay slips but also had to get a signed letter from work starting return to work date, hours and salary. Had to jump through a lot of hoops but finally sorted.

Apologies in advance for sounding a bit preachy but lending criteria are there to make sure you can afford to repay your mortgage. I personally wouldn't want to judge affordability on a salary I wasn't going to get.

Rainshowers Sun 21-Feb-16 22:39:38

I never had any intention of going back full time, nor would we let our parents do all the child care. However of course we worked out the affordability ourselves and knew that we could accommodate an increase in mortgage payments, even without me having any salary (although I always intended to work part-time). We couldn't get enough to move without using both our salaries, but there were affordability factors we knew about that the bank wouldn't take into account-for example the house we were buying was much closer to the station, so we would no longer need to run two cars, nor would we be paying out over £150 a month on parking. Those two savings alone almost covered the increase in mortgage (along with the fact we had a much better interest rate), so we were quite comfortable with stretching the truth.

unimaginativename13 Mon 22-Feb-16 07:16:52

As I said Zampa we can live off DPs wages. We already rent at more than the cost of our mortgage. I just don't want to take the risk of being declined .

I'm nervous as I work for a small company and don't want to have a detailed talk with my boss about returning. Although I may return part time, he's understanding enough to give me the letter that bends the truth a bit. I just wasnt ready to tell them as its a long way off.

Wishfulmakeupping Mon 22-Feb-16 07:25:32

Well I've been in this situation twice so...
When I actually was going back to work I needed a letter from my work to confirm my return to work was within 3 months and conforming my hours per week and salary.
This time I'm on mat leave and not returning to work as i was made redundant so I live off that money if you see what I mean. Even though I have my own money I'm classed as a 'dependant' which changes the amount my husband can borrow significantly - about 30k.
We're hopefully still doing it but had to rethink our budget a little.
If you're baby is here you can count child benefits as income but they wouldn't take my mat pay into account.
Go to a broker and see what your options are.

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