Motgages and pregnany - what are banks allowed to ask?

[piesey]

Hi

I'm 20 weeks pregnant and we are in the process of buying a flat (or were). Our banks had approved us for the mortgage and there were no problems. It came to the proper application and I went alone as my DH was not able to come. I had all the necessary paperwork.

We are both in full time work, no debts and can easily afford the mortgage and were not borrowing as much as 3.5x our salaries. The mortgage manager said all was fine. When it got to the question about dependents I said 'None' as we don't have children yet. He turned and said, 'but you will do soon I presume?' and looked at my bump (which is noticable). I said 'yes but it's early days yet' and thought that would be the end of it.

However, our mortgage application has come back as a 'maybe' and the underwriters are looking at it. Again - I relaise this can be normal as we are first time buyers etc. But I got an email asking all about my prgnany - wht my maternity pay will be, how long I plan to take off, and 'have I thought about how much childcare will cost me?'. I

I've answered these questions but I'm really worried that they are even being asked - they are not part of the formal application form and I'm angry that what passed in conversation has gone on to the underwriters. I'm worried we will now be refused on the basis I'm preganant (which I know is illegal).

Can anyone give me any advice about this or what we should do if they do refuse us based on this?

Sorry title should say Mortgages!

no advice I'm afraid but I wouldn't have thought they'd be able to ask those type of questions? are morgage is due for renewal in the month our first child is born, and I had no intention of saying I was/had been pregnant didn't know I had to

We had this when we moved house last year, I had a 6mth old and was on maternity leave. As long as you have proof that you are definitely returning to work (if mortgage is being worked out on the basis on both salaries) and other aspects of pay then it should be fine. I never had this when we moved when DD was also 5mths but the market what was a lot more bouyant and lenders were far less cautious then they are now - rightly so.

As you are aware, the lender is not allowed to turn you down simply because you are pregnant. However, this is a complex area. The birth of your child will increase your spending. It may also reduce your income. The lender needs to be reasonably confident that you will be able to afford the mortgage.

If you are refused you should get advice from CAB.

Thanks for all the replies - I'm going to see what they say tomorrow and if they refuse us I will contact CAB.

I don't think it's unreasonable that they asked. After all you will need to keep the payments up. I would be expecting them to ask about your rates of pay during maternity leave etc.

Normal to tell the bank about childcare & work - we needed to declare school fees.

They can still decline you and it not be discrimination. CAB will confirm this.

They borrow you money based on your finances and ability to repay. They can ask for details of your maternity pay, how long you plan to be off or if you plan to return and pay chidlcare costs as it affects your household income. The same as many ask for details of company sick pay etc.

The decision has nothing to do with you actually being pregnant but will be based on you meeting the criteria.

If we had zero children we would have been allowed to borrow £20k of additional lending on our home but as we have 4 dc it was reduced to only £5k so I think legally they can ask about the number of dependents and childcare costs.

Would you qualify for it based on your dh's income . How much of a deposit do you have ?Surely in this day and age they have to be cautious and borrowing 3.5 joint income isn't that low a multiple. I'm not sure it is even illegal to refuse, ultimately they have discretion as to who to lend to, sorry.

Why not go through a mortgage broker who you don't actually meet with, like London and Country. Then they won't even know you are pregnant unless they ask.

They are lending you hundreds of thousands of pounds - they can ask you whatever they like! You don't have to answer the questions, but they won't lend you the money. They do not have the right to turn you down because you are pregnant, they do have the right to turn you down because you did not give them all the information/because you won't be able to afford the mortgage when the baby arrives.

If you had disclosed all the information at the initial interview (i.e., I will be going on mat leave in 4 months time, mat pay is X, childcare when I go back is X) they probably wouldn't have been too fussed, but not disclosing is the equivalent of lying. If you were lending someone money who hid the truth, would you not want to ask extra questions?

Mortgage applications are you entering into a contract with the lender - if you lie/do not fully disclose on the application and they found out further down the line they would be within their rights to withdraw their lending, forcing you to sell your house or go onto the SVR.

Hopefully they will approve it anyway, but in future (particularly if you are taking out life/home insurance) make sure you answer all questions fully, as otherwise if you try to claim they can cancel your policy and not pay out!