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Pregnancy

Talk about every stage of pregnancy, from early symptoms to preparing for birth.

Getting a mortgage whilst pregnant

21 replies

Tezbean · 09/03/2011 21:24

Hi

I'm 16 weeks and we've been trying to move house for ages. Finally found somewhere and now my bank is saying they can't take my salary into account when deciding what we can borrow as I'll be going on maternity leave. I have enough in savings to cover this but they said that because I might not ever go back to work they won't take the risk.

Just wondering if anyone else has had this issue and if you were able to get around it

Thanks

OP posts:
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LittleMissMoi · 09/03/2011 21:54

Hya,
Found this, as we might be facing similar scenario. I think all lenders seem to be making it as hard as possible for people to get mortgages now, unless you've got a wopping deposit...sign of the times! Hope this helps, although is a little out of date:
www.thisismoney.co.uk/mortgages-and-homes/ask-an-expert/article.html?in_article_id=499285&in_page_id=109

jenga079 · 09/03/2011 22:04

What? I really hope this isn't true as we've been told by at least two advisors that they will take my last three pay slips as evidence of my pay and that so long as I haven't gone on maternity leave by the time we move (and therefore my pay slips are still for full pay) that they will offer us a mortgage based on current pay. PLEASE let this be true!

We have our mortgage 'booking' appointment tomorrow so I'll update you about what they say.

SooooCynical · 09/03/2011 22:09

OMG!! Things must have changed. I was pregnant when I got my mortgage and it's just based on my salary. There was no comment whatsoever about me being pregnant. The only issue was that my mortgage runs until after my retirement age and they said there may be a problem with that and I needed to ensure I would have sufficient income and that was that.

Have you tried elsewhere??

Tezbean · 09/03/2011 22:10

I found an old thread on here and all the issues seem to be with First Direct. Guess who I bank with?! I'm going to call a broker tomorrow and see what happens.

Jenga I look forward to hearing what your lot say!

OP posts:
msbossy · 10/03/2011 06:52

I'm pretty sure this isn't fair practice. Rather than payslips do you have a letter confirming your annual salary? I used that while getting a mortgage late on in my mat leave.

SittingBull · 10/03/2011 07:16

This reply has been deleted

Message withdrawn at poster's request.

wolfcubEm83 · 10/03/2011 10:04

I was a mortgage advisor for a high street bank (yawn) until 18 months ago when i got made redundant. As far as i was concerned, as long as you can PROVE your income you should be ok, they cant discriminate as you correctly say SittingBull

I would print out your employers maternity policy, work out how much you are going to get (show how you got to that figure), take AT LEAST 3 months pay slips (the more the better) and your P60, your contract with work and a letter from your employer stating what your annual salary is and that you are entitled to maternity leave. It sounds a lot but it is totally necessary to show them.

I always just used to write a letter to the employer myself asking for confirmation of annual salary and details of maternity leave and ask the employer to fill it in and send it back but then i always used to cover my back in case things went wrong. Mabe you could ask them to do that??
Believe me, mortgage advisors are DESPERATE to lend to people as that is how they get their bonus and the restrictions are purely due to Head Office trying to follow the rules, as long as you take every piece of paper possible as evidence that you can afford the mortgage you should be ok!!

Good luck x

CrazyAlien06 · 10/03/2011 14:48

hey, I hope you can lol

I am currently 11 weeks, scan next week, if all ok will be getting mortgage as soon as house is on the market. My current job is only a contracted job (teacher) so will not be working .

as far as I know mortgage peeps just need 3 months pay slips im not even telling them im pregnant. helps that we have quite a good deposit to put down.

mummysleepy · 10/03/2011 16:19

Definitely don't tell them you are pregnant if you can avoid it. We had problems with first direct and ended up going into our local branch of Clydesdale bank and they gave us mortgage no bother although I was obviously pregnant.

happycamel · 10/03/2011 19:33

I've just done this with Santander. I had to tell them because they asked if my income would reduce in the next six months and I can't lie. Obviously it would break the conditions of the loan if I did but also I'm a qualified accountant and could effect that.

The underwriters needed a letter from my HR confirming my pay while on leave and my right to return to work on full pay. I said I'd take six months and HR confirmed this. I may take longer but for now I thought this was sensible. I then had to write the underwriters a letter and confirmed that I would be returning after six months, full time.

Then they wanted to take childcare costs in to account but I said my mother would be providing this for free.

They have now approved the mortgage.

BTW, I've worked out the affordability myself based on DH's earnings with no bonus and me earning nothing and we could still afford it with some serious belt tightening. I've also saved up for my ML, like you, so actually there should be no negative financial impact. Oddly the underwriters wouldn't take account of our savings balance.

jenga079 · 10/03/2011 20:20

After reading this I wimped out and didn't tell them I was pregnant! They just asked for last three months, current salary etc and nothing about the future so I didn't mention it either.

Uh oh, AIBU?

Tezbean · 10/03/2011 20:27

I've gone with another bank. They didn't ask so I didn't tell!

Jenga I don't think we are being at all unreasonable!

OP posts:
Feliena · 11/03/2011 23:12

dont tell them!!!!!! i moved 12 days before i gave birth...uve seen the program i didnt know i was pregnant havent u??

AlpinePony · 12/03/2011 08:57

Discrimination and legalities aside please think very carefully before taking out a large mortgage.

Many, many women feel differently about work post-partum and do not wish to return to work full-time, if at all.

It would be extremely folly to lumber your family with a debt too large to service.

limpingbint · 12/03/2011 09:03

Just get yourself a broker and do not tell them - as long as at the time of application your salary is provable you are not breaking any laws. Really lenders are finding just about any reason not to lend at the moment - we are just having the same issue because of the position of the house in relation to water - it has been there for over 100 years and has never flooded but they are quibbling.

Do not volunteer any more information than is necessary

TransatlanticCityGirl · 14/03/2011 22:15

Well hang on a second, AlpinePony, fair enough for the borrower to think carefully about taking up a mortgage - but let's be very clear that it's neither the bank's or any of our place to ASSume what the OP may or may not feel post partum. True, SOME women feel differently and decide to take longer, but not all women do. And in fact, I know several women who planned to take extended take off work and got bored after 8 months and went back.

(and can I just point out that Tezbean has not yet told any of us what her maternity package is like? and did no one else take note that she says she has sufficient savings to cover the mortgage anyway???)

I'm very much for people taking responsibility for the mortgages they apply for, and actually think we in the UK have focused too much of the blame for the credit crisis on the bankers, and not enough on the borrowers. Both played a part and I feel no sympathy for anyone who knowingly borrowed more than they could afford and ended up defaulting.

Now that said, Tezbean, why oh why did you offer that information up? At 16 weeks preggers it none of their d*mned business, unless you are actually indeed planning on giving up work and don't have an alternative source of income/savings to cover the mortgage.

It's your right to change your mind. Just as you don't have to tell your employer how long you are planning to take, you don't have to tell your bank either.

(don't lie if asked outright either - BUT - there are plenty of lenders who will not ask. I have taken out several mortgages in my lifetime and have never been asked this question)

happycamel · 14/03/2011 22:42

The problem I had was that Santander did ask. That may have happened to OP too. If you are proved to have lied (and the calls are recorded) then your contract is void, which means they can (not saying they would) demand immediate repayment of the whole of the loan.

Apparently the new FSA rules mean the underwriters need an amazingly detailed papertrail in case they get audited. They are scared of being accused of not assessing affordability properly. Banks can't lend without having the loan underwritten so they have to provide the underwriters with all the information they are asked for.

This is a new problem. This speech given by a member of the FSA outline the new thinking www.fsa.gov.uk/pages/Library/Communication/Speeches/2010/1020_lb.shtml

TCG is correct in saying that it's all pie in the sky in terms of the fact you can change your mind about going back to work etc, and she's right that any borrower must be careful not to overstretch themselves but it's not now possible to avoid the conversation entirely, at least with some banks and maybe with more in the future.

Tezbean · 15/03/2011 22:13

Yes First Direct asked me too which was the only reason I told them as I felt the same way as happycamel.

Thanks transatlanticcitygirl for sticking up for my right to decide how much debt to get myself in to!

For the record I am a chartered accountant so do know the odd thing about money (!) and have specifically kept savings out of my house calculations so I have something to cover me through maternity leave.

New provider haven't asked and it all appears to be going through, fingers crossed, so hopefully the blob will have somewhere to live come August!

OP posts:
happycamel · 15/03/2011 22:28

Hi Tezbean, I'm a Chartered Accountant too. Maybe that's why they asked us, they know we have to be honest our risk our Chartership and because they know it'll probably be fine!

BetamaxBandit · 15/03/2011 22:32

I didn't tell them I was pregnant. When I had to ask if I could use the staff loo halfway through a meeting with our mortgage advisor (to puke - I had god awful morning sickness) DH told them it was a hangover Blush

JennyPiccolo · 15/03/2011 22:45

go through an independent mortgage advisor, best £300 i ever spent. Rightly or wrongly, they do hold some sway with the banks.

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