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

[Unsure05]

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 🙏🏼

Things can get delayed especially with new builds, you might need a new mortgage offer.. And you're not going back just to break even. Pension, career progression. Half the childcare cost is your husband's - I bet he isn't thinking about giving up work. can you both drop a day or two? Definitely don't give up until you've completed on the property.

new builds are often late, if you don't complete on time you'll need a new mortgage.

You need to check the expiry date on your mortgage offer.. in Winter it’s not uncommon for houses to take months more than the original date you are given. If your offer expires, then you’ll need another mortgage offer and then they’ll check your eligibility again.

Something similar happened to a friends sister. She was moving a hot few miles away to a new house and during the process decided to apply for a new job, closer to the new house. She got the job, left the old role for a break while packing etc and then when something went wrong in the conveyancing the competition was delayed and basically she had to resubmit all of her paper work after a an extra 7 week delay. But she was no longer actually employed at that point as she was waiting to start her new job, had officially left the old one and and so her income was zero. In short she lost the house and had to go beg for her old job back while staying with family.

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.

All of this, and all everyone has said about the whole house possibly falling through if there are delays and you have to get another mortgage offer. Also, the fact you will presumably be wanting another offer in 2 yrs time.

I really wouldn't give up work in this circumstance.
'Managing' for the next year or two reaps so much back in terms of careers, pensions, keeping skillset, etc.

I can't help with mortgage but have you booked childcare for your return to work. Childcare in my area required loads of advance warning - I think it's as baby is made for the nursery I use!

I think they will check your financials shortly before completion. So if your timings don’t work out then you may have to go back to work for a couple of months.

But you should not be using your earnings on childcare!
Your DH should be paying half of it if you are both working.

Please tell us that you have joint finances (all income/wages into a joint account) and you are not going to be at the mercy of asking DH for money to buy dummies etc. like my silly older sister did to herself.

It's a material change of your circumstances OP and the onus is on you to inform the lender. If you don't and they found out, they could withdraw the offer and you would lose the house. They could also put a CIFAS marker on your credit report. It's mortgage fraud at the end of the day.

Okay lots of great advice thank you! So to answer some questions, the offer is valid for 8 months and we got it through last month. My job right now is 3 days and not something I trained in, I’m normally self employed teaching yoga and Pilates with gp referrals so made a decent amount but we had a stint living in another country so to be able to buy since coming back I got a “proper” part time role that once we’ve settled I would like to leave and go back to self employment so I’d still be earning but be able to work less hours and earn more at the same time. DH and I absolutely share finances, I just meant what I’d earn would just be going straight back out on childcare. We both put fair amounts into a joint account based on what we earn and that pays all our outgoings! I could basically go back to my part time job or back to self employment as I don’t think I’d do well as a full time SAHM for long! I’d do it until DD1 goes into reception then look at what classes and clients I can filter in to my week and go from there. I hope that makes sense!

ignore everyone who says they won’t know unless you tell them. This is only good advice for after you’ve got the mortgage and have moved in (at which point it only matters for renewal).

Between applying for mortgage and actually starting the mortgage you will have signed an agreement saying you will let them know of any material changes. If you do not tell them and quit your job before the mortgage starts they find out they might cancel your mortgage offer and put a marker next to your name for potential mortgage fraud.

it’s a pain but I would just stick it out a few months till you’re in the house.

We got a mortgage offer in November 2020, so pre the rate rises and I can't imagine things are less thorough now.

I had to give my most recent payslips just before completion, and DP (self employed) had another years worth of books that he had to show as we completed in late April. Don't leave your job (if that's what you decide to do!) until you've completed the purchase.

Have you not read the OP? This person is contemplating quitting her job and not returning to work at all because of the familiar old thing about woman-job-doesn’t-cover-childcare.

@Abergale ah amazing thank you! This is what I needed to hear basically to decide. Much appreciated! I want to do it right but with being able to end up working and living the way we prefer!

@Combusting ah sorry it does read that way but I do part time now in a job I don’t really love because it’s more secure for paying out for childcare and for getting a mortgage. I would still want to work but doing what I did pre kids that made me more money through less hours but through self employment which mortgage lenders won’t accept as we haven’t been back in the country for 2 years yet so they wouldn’t accept any form of self employment from me

Well our chain collapsed because someone else in the chain quit their job before completing the move. They weren’t able to get a new offer and it’s a new buyer. It’s added 3 months (and counting) to the process (and royally fucked everything up).

I would also add that short term, you might not see any financial benefit but long term you have your continued pension contributions and earning potential to increase over that time. I would just weather the storm for a few years.

A lender can withdraw their offer at any time, not just before completion. Sometimes they even do post completion checks. Ask your broker and they will tell you the same. Perhaps ask your broker the question and see what they’d suggest.

Sorry was supposed to say even just before completion.

yes - go back, complete on the house then quit.

if you leave now its fraud if you dont tell them!

i would also not tell them else they will possibly have to "redo" the mortgage offer which willl delay

Your mortgage offer will have an expiry date and your may run into issues if your new build overruns.

I would try and keep your job until you complete. Or look for a new mortgage based on your partners salary only?

Also OP not sure if it's the same but if you quit when MAT leave is up you may need to pay your MAT leave back. I'm sure when I was on MAT I had to remain for 12 weeks after returning or I'd have to pay it back xx

I got a mortgage while on Mat leave. As you did I got a letter from my employer as you did stating my intention to return to work full time.

Then I went back part time 😬

Nothing ever came of it x

So I’ve just double checked and ours is a 5 year fixed term so I’m going to keep the job until we’re in the house, then quit and go back to self employment to fit it around us and childcare and then I’ve got a few years to get my tax returns sorted! I won’t owe any mat leave as it was just 90% of my wage for the first 6 weeks then statutory. Thanks all! Needed this advice to make sure I was doing it all right!

As long as your mortgage offer doesn’t expire before the build is ready (as we all know these things can drag on) then you won’t need to go back to work

I would imagine all mortgage offers stipulate advising of any change in financial circumstances before completion takes place.

Outgoings will have been taking into consideration at the time of the mortgage offer, assuming you didn't have any childcare costs at the time of the offer, your income may have been the deciding factor in lending the money.

I would not recommend trying to stay under the radar, I say this as I work in fraud and the last thing you would want against you is a CIFAS loading indicating mortgage fraud.

If completion happens before you hand in your notice and you can comfortably repay the mortgage then I would expect you would not have to advise them of this. It only may affect you if you need to remortgage.

what did u end up doing, are you moved in now 🫶🏻