Mortgage application when on maternity leave?

[Cyrli]

It looks likely that the company we are trying to get a mortgage with them are going to refuse to take my income into consideration because I'm currently on maternity leave. I had no idea they could do this, I'm currently on 6 months full pay so nothing has changed and I will be going back on the same salary as before and I have a permanent contract.

Has anyone managed to get their income considered whilst on maternity leave? Which lenders should I approach?

I spoke to a broker who suggested that it could be considered sexual discrimination if they do refuse you.

I went through London and Country fee-free brokers - brilliant, they search loads of lenders and do all the work for you (and harass remind you when you need to send forms etc ). I strongly recommend giving them a ring first.

Adair - I spoke to the Equality and Human Rights Commission who confirmed that it was sexual discrimination but I want to buy the house and not be a test case!

I'll give London and Country a ring in the morning to see if they can help. I can't believe we've lost the arrangement and valuation fee.

We arranged our mortgage through Barclays / Woolwich and they were ok about it - they did ask though for payslips from before my maternity leave PLUS a letter from my HR department confirming my salary for when I returned and the return date. It may have helped that a) I only had approx 2 months left of my leave (so presumably was viewed as a safer bet) and b) I've been banking with Barclays for ages -- though am quite cynical as to whether that means anything to the banks.

We got our mortgage from First Direct last year when I was still on maternity leave - we bank with them, so they could see my monthly income from my employer (until it shuddered to a halt after five months on maternity leave) but all they wanted was a letter from HR confirming the date that I was returning to work, and the salary I would be on.

I'd change provider if I were you - it shouldn't be this difficult to get a mortgage!

London and Country are very good, should be able to help you but I wouldn't think of the valuation and application fee as "lost": start harassing the Head Office of the original company and point out there was nothing in small print about the mortgage not being available to those on maternity leave. Point out that it is sexual discrimination and that you are willing to be a test case .

lalalonglegs - I did tell them I would be willing to be a test case and that I had spoken to the Equality and Human Rights Commission. I don't know if this helped at all but we have been offered a mortgage "even though you are on maternity leave" (this is ING Direct by the way). I think it's probably more to do with the fact that we have equity in another property. Their policy is usually to take the lowest salary when you are on maternity leave - so £535 (smp) x 12 would be £6000 or if a mother is planning on taking 12 months ML as I am then they don't take the mother's salary into account at all. I will be writing to them to complain about their policy and passing this on to the Equality and HR Commission. I'll start another thread when I do this to encourage others to name and shame.

THank you for all your support.

I am now trying to get a mortgage through ING having problems though as they are saying that I need a payslip when I return to work ( won't get a payslip until the end of may) but we are hoping to move end of march!!!!! I don't know what to do as ING did say that they accepted maternity pay as part of your calculation!!! any advice or help would be great of any one that has been offered a mortgage? x

We had a similar thing when I was on maternity leave - I think we were refused a mortgage by quite alot of the high street banks on this basis - Abbey, Bradford & Bingley etc. They wouldn't take my income into account. We eventually went with Nationwide - although as others have said, its the bank that we have our joint account with so we were "existing customers" which helped but even so, I had to provide my last 3 pay slips before going on maternity leave and a letter from my employer confirming the date I was going back to work and my salary.

Hope that helps
Mandy

I think you need to realistically decide whether you are actually going to return to work - lots of women choose not to - and the financial implications for your family if you increase your debt but decrease your wages.

I was able to prove to ING direct that we would be able to pay the mortgage until I went back to work - bank statements etc and I provided a letter from my employer. Good luck and give the Equality and Human Rights Commission a call to see if there has been a test case yet.