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Original poster

Mortgage advice, do I have to go back to work?

60 replies

Unsure05 · 22/09/2023 16:20

Hi all! We’re in a bit of a dilemma! So we’ve managed to buy a house while I’ve been on mat leave. It’s a new build due to be ready between December and Feb. My mat leave ends in December and I’m due to go back at the start of January. But we’ve been doing the numbers and (FYI we have a 3 yo and a 6 month old) it’s just not going to be worth it financially, especially while both will have to be in nursery before the eldest starts school. I would be using basically all my earnings on childcare and I’d rather be the one looking after them if that’s the case! But our mortgage offer is based on my income also and I got a return to work letter and everything. Now we would be fine paying the repayments on DHs salary, we wouldn’t struggle, but would the mortgage offer get taken back if I don’t go back to work? WWYD? My baby also won’t take a bottle of any kind and is ebf so I’m also worried about that side of nursery too. Just not sure how to work it for the best! TIA for any knowledge and advice 🙏🏼

OP posts:
OhComeOnFFS · 22/09/2023 16:22

How would they know?

It's the same as taking out a mortgage and then losing your job - as long as the payments are made each month, they wouldn't know.

SoundsLikeFun · 22/09/2023 16:23

I would imagine you’d need to go back to work. They would look at it as if only one job, and it’s lost, you can’t afford the payments. With two jobs, it would less likely for you both to lose them, so mortgage could still be paid.

OhComeOnFFS · 22/09/2023 16:23

There will be certain things which would break the contract - maybe something like renting your house out while you're not living there yourself, that sort of thing - but not going to work wouldn't be one of those things.

Spotnessmonster · 22/09/2023 16:24

Youl have to go back until you complete. Are you owed any holiday you could take??

SoundsLikeFun · 22/09/2023 16:25

Oh sorry, have you already accepted the mortgage offer? If it’s in place then no, they can’t really do anything. If it’s not yet in place, then that’s when you may have an issue.

Windmill34 · 22/09/2023 16:27

They wouldn’t know unless you told them, only thing you might stumble on is

if your on a fixed rate and it comes to an end and you see cheaper fixed rate with another mortgage company you will have to supply
income details from both of your jobs
other than that they won’t know anything

SphincterSaysWhat · 22/09/2023 16:29

Whatever you do, do not tell your solicitor if you decide to make the change - your solicitor acts for the lender and will be obliged to tell them. They might then withdraw your offer.

Illegallyblonder · 22/09/2023 16:30

Why is all the childcare coming out of your salary? It's not just worth it for the immediate cash, it's also about maintaining your career and earnings.

Original poster
Unsure05 · 22/09/2023 16:30

Yes we’ve accepted. Just waiting for completion and for the house to be ready! Would there be any way they could find out if I didn’t go back? I know they run some checks before completion but as far as I’m aware it’s only on credit but does that show my employment? I’m so nervous about doing anything quite as risky as not going back when they think I will be!

OP posts:
Philosopherstone · 22/09/2023 16:32

Could your husband not use holidays to cover whilst you go back to work temporarily just to bring it over the finish line then leave.

Nam3chang384 · 22/09/2023 16:33

Windmill34 · 22/09/2023 16:27

They wouldn’t know unless you told them, only thing you might stumble on is

if your on a fixed rate and it comes to an end and you see cheaper fixed rate with another mortgage company you will have to supply
income details from both of your jobs
other than that they won’t know anything

yeah - this is the case for us, we can't change lenders as we wouldn't get the mortgage again (my OH has gone part time to spend more time with our LB). Given we knew that was likely to be the case we made sure we got a mortgage from one of the 'big UK banks' who we envisaged would always be reasonably competitive, even if not the out-and-out cheapest at the time.

Eddyraisins · 22/09/2023 16:33

I would wait until completion. Also does depend on the numbers.

How much is husband's salary compared to amount you are borrowing and how much deposit. Then you can figure out of he could pass checks on one salary.

Calmdown14 · 22/09/2023 16:37

Did you receive any enhanced maternity pay? If so you normally have to pay this back if you don't return.

Don't forget the pension benefits, national insurance stamps, keeping on the career ladder that come with working.

You still have time to sort the EBF and presumably milk will make up less of her diet by then anyway.

Original poster
Unsure05 · 22/09/2023 16:39

Also to add my holidays left take me to January and my partner will have to use his holidays for the actual move. We’re hoping completion will be around Jan but there’s just nothing set yet. We’re on a 2 year fixed and I would probably go back working once the eldest DD is settled in school. I’m only part time now as it is but I don’t know if we would be able to borrow as much just on DHs salary I wouldn’t want to risk it!

OP posts:
Calmdown14 · 22/09/2023 16:43

Will your three year old not qualify for free hours?

I understand the appeal to stay at home. I felt like that too but glad I didn't because I've been able to continue part time and intend to right through their schooling.

I couldn't get the job I have now part time. So if it's a position you like think carefully about giving it up as choice in part time work can be a lot more limited.

Personally in your position I'd go back for a few months to get through the mortgage and then reassess.

JustforAlice · 22/09/2023 16:44

We have bought this year did the whole financials stuff with the mortgage company in Jan. Completed in July but 3 weeks prior to completion we had to re-submit financials for approval. I can only assume because of the gap so they wanted to check finances still the same as they were when we were approved.

ActDottie · 22/09/2023 16:49

They won’t know unless you tell them. But if the offer expires because the sale is delayed then you may be stuck.

PegasusReturns · 22/09/2023 16:52

it won’t matter now but might when you go to remortgage in 2 yrs when your fixed rate ends.

We had a situation where we had a mortgage and I’d stopped work. Fixed rate came to an end and we couldn’t get a new mortgage for the same amount without my former earnings in consideration, so we were stuck on the standard variable rate. It took about 18mth to resolve and during that time we were paying almost £1k more than we would if we had been on one of the discount rates.

This was years ago though so hopefully the situation is less absurd.

ConfessionsOfAMumDramaQueen · 22/09/2023 16:57

You'll need to go back to work until it's completed. What form of maternity leave did you get? If it was topped up from statutory you often have to work for a period of time after leave or they claim it back from you. Take maximum maternity leave, use holidays. If you need to return to work to not pay maternity leave back then do that, by that point you'll have completed and you can resign.

I'd personally encourage you to try find a balance though. Free hours will be coming in and going out to work helps you mentally and financially for your future earning potential. Could you look at going part time instead? Yes the days you work will only just pay for childcare - but it's good for mental health and you'll get NI credits and build your pension if it comes out of gross pay build your private pension. You'll also still be in the workforce getting experience and could be eligible for promotion etc.

AutumnDragon · 22/09/2023 17:16

Your offer will be subject to you notifying them of any changes to your situation. Some Mortgage companies are now asking for extra documents prior to completion to confirm you are still in the same situation - it appears to be a random sample rather than specific companies.

They can pull the mortgage offer anytime before completion.

Sorry to be the bearer of bad news but it's better you know now than at the last minute.

GingembreThe · 22/09/2023 17:19

I think the question is whether your DH's income alone is enough for the same mortgage offer?

For example, if you were borrowing £300k and your DH's income is £110k, you would probably be fine, they wouldn't withdraw the offer. If you were borrowing £300k and your DH's income is £70k, possibly not. Usually you can borrow 4-4.5 times income, so it depends on how the mortgage company decides - 4 x £70k wouldn't be enough. If you were borrowing £300k and your DH's income is £60k, definitely not.

RunAwayTurnAwayRunAwayTurnAway · 22/09/2023 17:42

A few PPs have advocated returning to work to continue receiving NI stamp. This is received through child benefit until the child is 12. If the family do not qualify for child benefit a parent can still apply for the stamp without payment of benefit.

ChessieFL · 22/09/2023 17:50

Bear in mind as well that new builds are notorious for delays - it’s possible that completion could be delayed until February or March. We bought a new build last year and we’re originally told it would be ready in July but we didn’t complete and move until mid September.

GyozaGirl · 22/09/2023 17:52

Don’t give up work and not just because of the mortgage these are the lean years because nursery fees take so much.

Now in my fifties two friends of mine have ended up divorced, one was a SAHM for about 14 years and she is absolutely fucked. She may have got 50/50 assets but it’s a bleak future as she starts back near the bottom of the ladder. The other only took a short break and is in a better position. Then me, I became seriously ill and was retired early on the grounds of ill health. I get my pension it’s not as much as my pay obviously but still a few thousand a year. If DH was suddenly not around for whatever reason I would still have an income.

It’s not even about being a pessimist or optimist it’s about being a realist.

Spirallingdownwards · 22/09/2023 17:55

When does the mortgage offer expire? You may have issues if you need to extend it and confirm that all the info remains correct.