Mortgage and maternity(21 Posts)
Hi all, am trying to get a mortgage at the moment and I'm currently on maternity leave returning in April. We've made an offer that has been excepted on a house and are able to pay a 20% deposit.
We've approached a mortgage broker and they have said that companies are not interested because I am on maternity leave. The building societies are basing mortgage offers on statory maternity pay and the broker has advised us that the best deal we can get is for a 15% deposit as the 20% deposit doesn't make much difference to rate of interest on the mortgage.
Am a bit worried that as it is a commision based broker they are doing the best for themselves rather than us.
Has anyone else experienced this sort of problem getting a mortgage when on maternity leave?
Can anyone recomend lenders that have given them good deals despite being on maternity leave?
Watching with interest. I hope someone can give advice
Give L&C mortgages a call. I asked a similar question a few weeks ago - not looking to remortgage yet but will be when on maternity. The will be able to find some places that will work with you on it I think.
Yes, talk to a different broker. There are definitely lenders that will give a reasonable multiple of your pre-maternity salary - I think it was Santander that did a friend's; they just needed a letter from employer confirming the mom was expecting to go back full-time.
We went with ING who were a bit more difficult (I was on 6 months paternity leave at the time) - we just about got the mortgage just based on my wife's earnings as they were reluctant to believe I'd go back!
I've heard that a lot of mortgage companies are extreme reluctant to use a woman's normal salary as a basis for the mortgage if she is on maternity leave. Some will do it with the most ridiculous demands of
worthless letters from employers saying start dates etc.
We were in a similar position in 2010 - I was on maternity leave. We didn't use a broker but I spoke to quite alot of mortgage companies. My experience was diifferent to a previous poster - I think it was actually any of the banks in the Santander group (which included some building societies) which refused to offer whilst I was on maternity leave even though I was going back in 3 months time.
We got a mortgage with Nationwide but i did have to provide a letter from my employer confirming that I was going back.
I agree you should speak to London and Country. (Independent, no fee mortgage brokers. I've used them for the last three mortgages / remortgages. They're often recommended by the Guardian / Observer).
We're just starting remortgaging and I'm on maternity leave at present and have also been dealing with London and Country. It's early days but they seem to have found a few possibilities that aren't too badly affected by me being on maternity leave.
If you've already got a mortgage, it's worth asking if they do mortgage holidays for maternity leave. Mine did (although I found out about it by accident).
We took the maximum 6 months - not paying any mortgage at all for 6 months made our lives so much easier!
THanks for the replies will give L&C a call but I did think they got their commision from the mortgage companies.
Have spoke to co-op and they didn't see me being on maternity leave as a problem and their deal was not to bad - as good as the original broker mananged to find.
Most mortgage advisers will get commission from the lenders. The only way I can see around this is to specifically look for an IFA who charges you separately, so will cost you in fees, or go directly to every single potential lender personally. The advantage of the adviser is that they know the different lenders already so which are likely to lend in your circumstances or not.
Depending on your income and whether you would get increased tax credits etc I'd consider nationwide as they were the only ones who took tax credits into consideration when we applied.. I'm currently on maternity leave. Might be worth a ring.
When do you expect to complete? It sounds like a fuss about nothing given you'll probably be back by the time you actually move in!
I was in your circs just a few months ago, and I got my work to write a letter confirming my normal pay and my return date.
I was doing a buy to let with Coventry (where I needed a certain income as well as the flat's value) and getting a residential mortgage with HSBC and both were fine.
That's the anoying thing we would not complete till I'm back at work! It all seems very silly.
Will add nationwide and Coventry to the list to look at.
Thanks for the replies
Hi, we did this and I managed to convince the lender (nationwide) to lend on my normal salary by taking along a letter from my HR dept stating I would be returning to work on x date and earning xx per month.
I had to bend the truth sligtly about how much we would be paying fir childcare, as they wanted to knock 80k off our mortage offer based on this, but that's anoyher matter...
karron yes L&C do get their commission from the lenders, but they trade on being independent and giving advice which benefits you, not going for what makes them the most profit. It's free to speak to them so can't hurt!
I've found them to be great over the years.
I will promise, they've had a lot of recomandations on this page it turns out that BIL has used them in the past and found them to be very good too.
Now the big decision in 2 or 5 year tie in, if we can't get the best rates while I'm on maternity leave...
2 or 5 year? Depends also on what you think the economy's going to do, and how big your appetite for risk is, and whether you plan to move.
Also, do you think you might have another child? Might be worth asking if can take a mortgage holiday for maternity if this might be a useful option (and if you actually have a choice of provider!)
I got my mortgage with HSBC I heard they were changing their policy on this due to fear of impending equalities litigation.
It is ridiculous really. You have a job which is legally required to be kept open for you at a given salary. Of course you might choose not to go back, but then anyone with a job with a given salary at the time a mortgage offer is made could walk out of it tomorrow and have no income, new mother or not - but people don't because they have a mortgage to pay!
We've just got our mortgage with HSBC while I'm on maternity leave with no problems. If you do go with them, do NOT use Countrywide (their recommended slicitors), use your own. Good deal though
I had to get a letter from my employer saying I was going back to work, date, still had a job etc - that was 2009, Nationwide (ie lender) requirement - nothing to do with the broker, although he had mentioned was likely to be an issue
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