Adoption financial assessment - how does mortgage affect it?

[iamkate]

Hi all

My partner and I are considering adoption, or at least starting the process to see it we’re accepted, at some point in the not too distant future.

I may well be overthinking it, but at the moment we’re moving house, and we need to decide what kind of mortgage we will get! I understand that there will be a financial assessment as part of the adoption process and I am wondering if our choice of mortgage will have an impact on it or not..

The plan is for my partner to give up work and to be able to afford this we will need to live off our savings for 1-2 years.

Our mortgage is a significant part of our outgoings and I am basically wondering if it would be looked on more favourably if we had a longer term fixed mortgage rather than a short term fix that may well expire during the period my partner is out of work (and therefore introducing instability into our finances). Even if the short term fix expired as I mentioned and interest rates had increased then we would not have a problem paying a higher mortgage, and can demonstrate that.

So, having written this down, I am thinking that perhaps I am over-obsessing about the detail! But still any advice would be much appreciated

(note – I’m an accountant, so obsessing about money comes with the territory!)

Our financial assessment was a cursory glance at our outgoings vs income, that's literally it. I know others have been asked for bank statements, but we never were. I don't know any adopter who has been asked about their mortgage prospects, but i guess others may have a different experience from around the country?

Thanks mcdog.. I did rather suspect I was overthinking it!

I had to supply bank statements inc savings, and a copy of annual mortgage statement (plus filling in an income/outgoings form). They are checking things look stable, and that you could cope if something changed such as the child's needs preventing one parent from working etc.

I did put a long-term fix on the mortgage just because I didn't want to have to think about it while on adoption leave!

JamHoneyMarmite your comment about the long term fix has just made me realise that if we did the short term fix I'm considering (2 years) it could expire when we have one of us on adoption leave (depending on when we start the process, and how fast it all goes). And I have NO idea how one would apply for a mortgage when there's only one working party - given our mortgage is super high that's probably best avoided..

To be honest I don't think we could afford for one parent to just stop working long term. But I suppose that is something that will be considered when we're assessed..

My finance check was me providing a couple of months bank statements so they could see my salary and a list of my direct debits. All they are concerned about is can you cover your bills. I put my savings account statement in as well but they weren't that bothered as happy wages covered bills with a bit to spare. Actually.....finance check was the easiest bit of the whole bloomin process! Best of luck x

I have read blogs and posts that say others were scrutinized even if your able to live off one job and saving they were asking why etc. I would ask a social worker from you LA or VA

Accountant here too. To be honest you'll run rings around the sw when it comes ot the financial bit.

Make the right decision financially for you and the rest will follow naturally enough.

You will need to think through one of you giving up work in the long term (depending on what you mean by long term) but really it doesn't need more than a discussion between you about what the options might be if it came to that - there's always an option.

I am single and had to give up work for about 2-3 years which I couldn't afford to do... but when push came to shove I sold my house, downsized and took on lower paid more flexible work that could be fitted in around school hours.

You may never have to do it but a contingency plan shows that you're thinking ahead and that you are prepared to put the childs needs first. I think the majority of adopters are able to go back to work at some point or to work part-time.

Just wanted to thank everyone for your comments, they've been really useful

Kewcumber, yes fair points about the giving up work. It is always an option. I suppose I was thinking it's not an option if we want to maintain our current (new) house and lifestyle. But I am more than aware (as a step mum already, which adds extra layers of complexity I'm not wanting to discuss here at the moment) that children change everything - and that once you have them you need, and are happy, to make all sorts of changes :-) :-)

I suppose thats the point really - they want you to show that you want to address the needs of your child more than you want to maintain your lifestyle.

Of course most decent parents would hopefully make that choice when push comes to shove but with an adoption you have to think these things though in advance.