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Mortgages and maternity leave

4 replies

MissB83 · 03/11/2018 13:10

I was hoping for some advice on mortgages and new motherhood!

I am a single mum to an 8 month old son (only child). I have a stable job with the government for the last 8 years, and am in month 9 of 12 of maternity leave (going back in February). We currently live in a shared ownership flat: I own 1/4 of the flat, which I have had for 8 years as well, so have a smallish mortgage. I have never missed a mortgage, bill or rent payment in that time so have a perfect credit score. However I am looking to go down to 4 days a week when I go back to work, so my income will be reduced whilst I will have to meet nursery fees at least 2/3 days a week.

I am looking to move to a larger house in an area near my family, probably buying a property with around the same value as my current flat but obviously a larger mortgage, although with my current equity and some help from family I should be around 50% LTV.

My question is:

  • would it be better to start looking around at houses and seeking to get a mortgage after I have already gone back to work and van demonstrate an ability to manage my finances on my new income (ie 3 months bank statements etc); or
  • with all the above factors, is it not likely to make much difference with obtaining a mortgage?
OP posts:
Rachelsholiday · 03/11/2018 13:24

Will you have childcare to pay when you go back to work, you may struggle to get a mortgage offer until you return to work I think though I may be wrong

poppyseed2 · 03/11/2018 13:26

I got a new mortgage on maternity leave, with a letter from my employer stating my return date and salary. They did factor anticipated childcare into the affordability assessment though.

Kit10 · 05/11/2018 16:49

If childcare payments are an issue NatWest completely disregard childcare payments in the affordability test, was recommended to use them by our broker for this reason.

Mumof1DS · 10/11/2018 07:45

Our broker placed us with Halifax, when I was 24 weeks pregnant on my say-so that I was having 9 months mat leave. No questions asked. Apparently Halifax is the most 'forgiving' of high street lenders. (DH also had adverse credit from a few years prior)

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