Can anyone advise on a first mortgage and maternity leave?

[Ameo]

I’m due to go on maternity leave soon, hoping to go back to work next year on a part time basis but have not discussed with employer yet.

We have come into the very fortunate of being given some money for a deposit. There is a local development we are particularly interested in.

Problem is I don’t think we would get a mortgage to cover the cost on my part time salary, but would on my current full time salary. The repayments are the same as our current rent PCM which we have paid without default for the last 9 years (this calculated on an online calculator). I have heard that some lenders will agree a mortgage with a letter from my employer confirming employment, salary etc but I am reluctant at this point to discuss part time return request with my employer. I could continue to work full time on my return but I had hoped not to as have really struggled to cope with 1DC let alone 2. No guarantee I’d even be granted part time hours.

If you’ve got through the waffle thank you. Options in my head seem to be:

1. Leave deposit money in an ISA for now and look at moving in a few years time.
2. Apply for a mortgage now asking employer for a letter which assumes I’ll return on my current salary and hours.
3. Discuss part time return now and do mortgage based on that - likely have to forget the new development (unless rent payments prove we have sustained this outgoing thus far?)
4. Other MN words of wisdom?!

Bumping for evening crowd!

I may be misunderstanding so please correct me but surely you just get your mortgage based on what you earn now, full time? Oh give your last 3 months pay slips and p60 and your mortgage offer is worked out from there? I'm sorry if I have the wrong end of the stick!

Yeah I thought it was based on your current pay and I had to provide three payslips and three month's worth of bank statements.

And I'd not mention anything to your employer about going part time yet. Wait until nearer the time of your return and request in writing.

From experience... they will ask.

I’ve just been through this as a first time buyer whilst on mat leave. I had to provide 3 months bank statements and my maternity leave schedule which was provided to me by HR when I went on mat leave. This states how long I’m expected to be off which parts of my leave are enhanced, statutory and additional unpaid leave and that I’m entitled to return to work on existing terms and conditions. I was also asked if I was planning to go part time but that decision hasn’t been made yet so I just said no; although it’s likely I will request it if I decide to go back to that job at all.

You do it based on facts as they currently stand, so:
Your current f/t wage
Last three payslips

Possibly need to also provide:
Maternity pay
May needs letter of continues employment from work

You don’t apply based on a possible but not guaranteed p/t salary in up to a years time

I did this last year. I was actually on mat leave at the time. They asked for 3 months pay slips at my normal rate and a copy of my contract to see it was permanent. They asked if I was going back full time and I assured them I was (this was a big, fat lie...).

I say do it now. We'd never have got a mortgage on my part time salery. But we knew, like you, that repayments wouldn't be an issue.

I think the problem the OP has is that she is just about to go on maternity leave and hasn't yet applied for a mortgage.

Yes, sorry, going on mat leave in 6 weeks! Had we been in this position 6 months ago I might feel a bit more at ease.

Half feel we’re better off leaving money to grow and re-consider in a few years time using help to buy or lifetime ISA to have a government bonus. Buying now we would have to buy a house that definitely needs work, or do help to buy equity loan, in London, with huge house prices that scare me. We are tied to being here by the jobs we have.

We bought a new house while I was on mat leave (admittedly 4 years ago now). At the time I had agreed to go back ft, and I’m pretty sure the mortgage company requested a letter from my employer to state I was going back ft and what my salary would be. I went back ft for a month then dropped to PT...

Will you pass the affordability tests though when you are paying out for childcare?

Yes, we already pay childcare for DC1 who will start school and then pay childcare for new baby

I think you'll be ok. What's your maternity package like?

I think you usually just need to confirm you're returning to work afterwards. No need to mention anything about going part time to lender or employer at the point. They should calculate on your current salary on the basis you'll be going back to that. There are loads of people that buy a house and then have a baby soon afterwards, lender can't account for this.

I would go for the mortgage now (as long as you can afford it) as this may well be your highest salary for a while if you do go part time in the future. So you'll not be able to borrow as much in the future if you apply, which is something to consider knowing what sort of house prices you're looking at.

Get the mortgage now whilst you are still technically a full time employee on a full time salary, albeit on mat leave. You have no legal obligation to tell your employer what your plans are for returning at this stage. If you then decide to go part time, you already have your mortgage. We moved house towards the end of my mat leave and I had already decided to become a FTM but hadn't yet told employer I was leaving. The mortgage company wanted a letter from my company confirming what I would be earning and my arrangements for childcare. I obviously couldn't lie so we were only able to get a further mortgage based on DH's earnings and for a lot less than we wanted.

Anyone got a rough figure of moving costs? I’ve accounted for stamp duty, but what about other fees and costs? Hoping to move 20 mins away. How long do mortgages take to arrange?
Clueless pregnant woman with sieve brain is not helping!

You possibly need to factor in solicitor/EA fees and moving company? Also, possibly storage? We were 'homeless' for 2.5 weeks and all our stuff was in 2 large containers!! It was a good few hundred to keep it all there.

To answer your last question, mortgages can take a while! We're in Scotland so could be different but the seller's home report expired and we had to wait for a new one to be done. It was honestly one of the most stressful times of my life!

You can get a mortgage in principal, it’s valid for 6 months or so

Worth chatting to a Moorgate broker

Thanks all - best get a move on.

If you can afford repayments with part time hours. Just apply based on full time now.

But dont leave yourself short of your going to go part time then not be able to afford the repayments. It is, afterall based on affordability.

Our mortgage was offered as no chain.

We still got messed around, could never get hold of both solicitor and sales agent dealing with our case. It took 7 months start to finish. I was fuming by the end of it and sent a hefty email threatening to pull out if they didnt drop the price for the trouble.

Was cutting my nose off to spite my face but it worked, lived here for just over a year now.

Can you def not hide the pregnancy?