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Original poster

DP told mortgage advisor I was pregnant

70 replies

ForeveronEtsy · 05/05/2021 10:50

I don’t know the ‘rules’ on this but I have read that I do not need to disclose? I am 6 months pregnant and we are applying for a mortgage. We had a mortgage in principle for £320,000. DP mentioned we had another child on the way and after updating our form they are only offering £215,880!
Obviously I know there would be a change but this seems like such a massive difference??!
Apologies if I am being ignorant as I am a first time buyer and this is all knew to me.
Any advice/experience much appreciated! What do we do now?

OP posts:
Brokenpencilsarepointless · 05/05/2021 12:33

If you've got your eye in a house already, and the sellers are guaranteed to move fast, then go to another bank or broker.

You know whether or not you can afford this mortgage with 2 kids. You've got a kid; you know the costs. And, honest, your mortgage is probably going to be cheaper than rent you're paying at the moment and you managed to save a deposit up whilst doing that. You'll be able to afford the mortgage.

Go somewhere else and move fast.

denverRegina · 05/05/2021 12:49

"This is ridiculous. Affordability checks are there for a reason."

Yeah, and they err on the side of caution for the lender massively (understandably). That doesn't mean they're accurate in terms of actual affordability on the borrowers part.

Bluntness100 · 05/05/2021 14:54

@denverRegina

"This is ridiculous. Affordability checks are there for a reason."

Yeah, and they err on the side of caution for the lender massively (understandably). That doesn't mean they're accurate in terms of actual affordability on the borrowers part.

They are there so that if interest rates increase the lender can ensure the borrower won’t end up having their home repossessed. It’s not about can they afford it now. It’s can they afford it in a year, or five years.
denverRegina · 05/05/2021 15:09

"They are there so that if interest rates increase the lender can ensure the borrower won’t end up having their home repossessed. It’s not about can they afford it now. It’s can they afford it in a year, or five years."

Yes everyone is aware of that, however their algorithms aren't reflective of any real common sense or calculation.

The moment a second dependant was inputted their affordability calculation dropped by a third. Thats not representative of reality, it's just a case of "computer says no".

Original poster
ForeveronEtsy · 05/05/2021 16:24

Thanks so much everyone for your help and comments! I have been crazy busy at work.
Some made me laugh about taping his mouth shut Grin he is far too honest and it’s hard to be annoyed at (although I am). But advisor didn’t even ask the question - DP just offered up the infoBlush
But totally understand what people are saying re affordability. We are not concerned in that respect. My wage pretty much stays the same whilst I am on leave and I plan to return on the same hours.
It was an in l-house advisor and DP was going to port his existing mortgage over. That is out the window now so best start hunting for a broker.
I think the general consensus is not to disclose? If we know we can afford. 100k is such a massive difference and completely rules out staying in our area.
Failing that, I have put the lottery on for tonight!!
Any recommendations of online brokers much appreciated x

OP posts:
Original poster
ForeveronEtsy · 05/05/2021 16:24

in-house

OP posts:
Bluntness100 · 05/05/2021 16:47

@denverRegina

"They are there so that if interest rates increase the lender can ensure the borrower won’t end up having their home repossessed. It’s not about can they afford it now. It’s can they afford it in a year, or five years."

Yes everyone is aware of that, however their algorithms aren't reflective of any real common sense or calculation.

The moment a second dependant was inputted their affordability calculation dropped by a third. Thats not representative of reality, it's just a case of "computer says no".

It’s representative of reality if you have double child care costs, it’s reflective of reality on many levels. If interest rates go up they need to take into account if the op and her husband would still be able to afford the property.

Honestly you’re getting more upset about this than the op is.

BluebellsGreenbells · 05/05/2021 16:58

This is ridiculous. Affordability checks are there for a reason. Children are expensive, it’s terrible advice encouraging someone to lie to get a bigger mortgage Than they may ultimately be able to afford

Rubbish. Rents are higher than mortgages and always have been, the money they save on rent alone with off sett he cost of a child in first few years.

Mortgages are long terms and reduce over time. Rent does not.

TakeYourFinalPosition · 05/05/2021 17:14

@ForeveronEtsy You’ll have to go through the full affordability process for a new provider, which is why Maternity Action recommend sticking to the bank you’re using... It’s your call, but you’ll have to either declare, or lie when they ask if you’re aware of any changes of circumstance that will affect your income.

MA do recommend reassuring the bank that you’ll go back to work etc, where relevant, but it says they’ll likely ask for a letter of intent from your company to verify that... which seems stupid, as your company can’t legally ask you 🤷‍♀️

But that’s where you are. You’re unlikely to be prosecuted but it is technically fraud and it’s not risk-free.

You’ll also need to look into any charges for repaying the mortgage early if you can’t port it, that’s usually done as a way to avoid early redemption fees which may now apply if you’re in a fixed term.

Can you tell that I’m also pregnant and have been reading the laws and legislation?! Grin Sadly not much seems to have changed since I worked in finance.

denverRegina · 05/05/2021 17:15

"It’s representative of reality if you have double child care costs, it’s reflective of reality on many levels. If interest rates go up they need to take into account if the op and her husband would still be able to afford the property.

Honestly you’re getting more upset about this than the op is."

😂 you're the one who finds it "ridiculous" and completely feasible that a few years of childcare might reasonably cost the OP over 100k. Have a word will ya.

Bluntness100 · 05/05/2021 17:20

Rubbish. Rents are higher than mortgages and always have been, the money they save on rent alone with off sett he cost of a child in first few years.

I’m guessing you don’t have a mortgage or don’t remember the financial crash when interest rates went through the roof and many people lost their homes?

BarbaraofSeville · 05/05/2021 17:27

@Bluntness100

Rubbish. Rents are higher than mortgages and always have been, the money they save on rent alone with off sett he cost of a child in first few years.

I’m guessing you don’t have a mortgage or don’t remember the financial crash when interest rates went through the roof and many people lost their homes?

That's 30 years ago now and very very unlikely to happen again in the short to medium term.

There's an awful lot of government, business and personal debt around now, the economy has been propped up by record low interest rates for over a decade now.

If interest rates went up even a few percentage points, it would utterly destroy the economy, even more than the challenges that we all face over the next few years anyway with the downturn in retail and the whole COVID fallout to overcome.

Babyroobs · 05/05/2021 17:27

@Bluntness100

Um some of these comments are just weird.

Op you’re having a baby in three months, it’s very likely yout sale won’t even have concluded at this stage. So he will have two depenendents and clearly child benefit of 20 odd quid a week isn’t going to make any difference

Do you Intend to keep working? Do you have enhanced maternity pay? This is not about getting as much as you can but getting what you can afford.

Yes exactly this.
Original poster
ForeveronEtsy · 05/05/2021 18:31

@TakeYourFinalPosition Grin thank you, I need someone in the know!!
Will check out maternity action x

OP posts:
Egghead81 · 05/05/2021 18:33

Op - I sense you’re in a real grump with your DH

Not his fault!!

Egghead81 · 05/05/2021 18:35

And completely correct of the bank

Egghead81 · 05/05/2021 18:36

* Lenders are not allowed to ask whether you are pregnant or on maternity leave when you apply for a mortgage. ... If you answer yes because you are expecting a child, the underwriter will usually assess whether you can afford the mortgage as though you already have an additional dependent,*

Original poster
ForeveronEtsy · 05/05/2021 19:04

@Egghead81Hmm

OP posts:
ThisIsStartingToBoreMe · 05/05/2021 19:09

My first thought on reading your OP was that your DP didn't want you on the mortgage at all. I was even more suspicious when you said that he was porting his existing mortgage over. Are you going from a mortgage in his name only to a joint one? If so i'd bet anything he's trying to stop you being on the mortgage.

andivfmakes3 · 05/05/2021 19:10

Just beware though if you go with an existing bank they are nosy buggers and ask about direct debits, regular payments etc as they can see it in their screens - I have a loan for IVF and they asked about it. I had to give an Oscar worthy performance down the phone about it not working (I was pregnant with twins 😬)

ThisIsStartingToBoreMe · 05/05/2021 19:10

Anyway, like the others said, you'll have to go through another broker now. Be interesting to see if it happens again.

Marmite27 · 05/05/2021 19:11

It’s about affordability. With a new baby you potentially have lower earnings due to maternity/paternity pay and childcare fees for the next 5 or so years.

I’d have gone crazy with DH!

andivfmakes3 · 05/05/2021 19:12

@ThisIsStartingToBoreMe

That's a bit of a stretch to suddenly infer that he is now financially abusive rather than just an idiot

DaenarysStormborn · 05/05/2021 19:19

We used VirginMoney. Everything online/over the phone. Try them? That way if they can't ask, you won't be showing up pregnant to a meeting.