Will maternity leave and fixed term contract affect mortgage offer?

[trrk]

Due to a delay in the chain we now have to reapply for our mortgage. When we first applied I had normal payslips but I will be down to the last 3 months of maternity leave and on no pay. How will this affect our mortgage offer? I can get a letter saying I will go back to work but it will probably state my contract us only until Oct this year. It will most likely be extended but I’m not sure when.

[Thingsthatgo]

I would think it is likely to affect the offer. Is it with the same bank? Presumably they knew you were pregnant when you applied.
Are you using a broker? Ours was brilliant with this kind of thing.

[Persipan]

What will your childcare situation be? They are very hot on asking about that.

[Sanch1]

My employer wrote to say that I'd be retunring to work on x date at X salary on a permanent contract, not sure how fixed term would go? And as another poster says they will want to know what you'll be paying for childcare.

[trrk]

Thanks for the responses! I was already on maternity leave when we applied the first time (but still on full pay) so our baby has been declared as a dependent. I don't remember being asked about childcare costs but baby will be in nursery when I go back to work. They only really asked for payslips and evidence we had the deposit I think. We did go through a broker who knows all the details of our personal circumstances. I guess it will be through the same provider unless the broker advises otherwise.

[ISaidDontLickTheBin]

I've done a mortgage application in the last 3 months of mat leave - the no payslips wasn't a problem, the asked for 1 payslip pre mat leave and my most recent one from being on mat leave.
I was going back to a permanent job though - I think you need pt ask your hr for a return to work letter and see what the wording is when you get it. If your OH has a decent permanent job then I doubt you'd get turned down, just might decrease the top amount you can borrow.

[peaceandpotato]

It's the fixed term that will be the main issue

[trrk]

Thanks again all! I just have to hope my contract has been extended by the time we need to apply then. I have worked for the same employer for 12 years but always on a fixed term contract due to the nature of the position (funded by research grants). OH has a permanent job and is the higher earner.

[PotKettel]

My experience with Nationwide was that my maternity + baby made them withdraw my offer of a mortgage with my DH completely.


Nationwide said, even though I had a permanent job with 3 months notice and enhanced maternity pay for 6 months.

Even though we had demonstrated the mortgage was affordable on DH income even if I wasn’t working.

And even though the childcare I had signed up to had a 1 month notice period whereas my job was 3 months notice (so I said, if I lost my job and couldn’t get another then I would have time to exit the nursery contract so I wouldn’t be tied into fees at nursery with no income).

so yes - lost our mortgage offer because I had a baby I could easily afford. They wanked around asking more an more obtuse questions for ages until we realised their affordability model is a piece of poo. (DH and are both work in finance and really don’t struggle to manage a simple cash flow model, unlike Nationwide apparently).

i wouldn’t go near NATIONWIDE again with a barge pole ever again as we nearly lost our house because of it.

DH applied to HSBC for a mortgage in his name only, and we put the house in his name. Got the offer online and couldn’t have been simpler - only took a week to have it all nailed down.

[peaceandpotato]

@trrk

Thanks again all! I just have to hope my contract has been extended by the time we need to apply then. I have worked for the same employer for 12 years but always on a fixed term contract due to the nature of the position (funded by research grants). OH has a permanent job and is the higher earner.

Ah yes. Ask your colleagues who they are with if they got a mortgage?

[CastleTower]

Halifax are very good about academics on repeated fixed term contracts, in case that's of any interest to you.