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Advice - want to move, port mortgage, but on mat leave

16 replies

theoptimist · 17/09/2009 12:49

Hi there,
I'm wondering has anyone any experience in this... I have an offer on my house and have found a house. I want to move to have a bedroom for my baby. I simply want to port my existing mortgage (same lender) and keep it the same amount. But I'm 5 months into my maternity leave, so I have no proof of my income (that the mortgage is based on). They mention doing affordability calculations and I was told I can't afford it - even though I've got it and pay it! Problem is my partner's income can't be considered as he is busy rebuilding his credit record, so to them we can't afford it, but in reality, of course we can. I've been told I will need to return to work full time, on same salary to port my mortgage. So I'd have to return now, while my baby's only 4 months old. I was planning on returning Part time after 9 or 12 months leave. Anyone any experience of this? Any ideas? Thanks.

OP posts:
preggersplayspop · 17/09/2009 12:55

I made the 'mistake' of telling my bank I was about to go on mat leave when we were thinking of moving and they also said similar things. They said they didn't want me to be put under pressure to return to work which is why they wouldn't consider my income for an application. I was a bit cross at the time, but actually think they did the right thing in retrospect given the irresponsible lending they have done in the past.

However in my case I would have been looking to increase the mortgage. If you are simply wanting to port it to another property I don't see why it would be an issue. They would have the same problem if you stopped paying the mortgage whatever property it was secured on.

Have you tried escalating it within the bank to see if someone will see reason?

holdingittogether · 17/09/2009 12:57

No advice but we would like to move but can't for the similar reasons. I have recently gone self employed so my income can't be taken into consideration yet. We can comfortably pay our mortgage but would not be allowed to borrow as much as we have now again just on dh's salary. I think banks are being very cautious which is a good thing. Isn't maternity leave classed as continued employment though?

BigGitDad · 17/09/2009 13:02

Can you say what lender you have and how much equity will you have in the new property percentage wise? 25% or more or less?

BigGitDad · 17/09/2009 13:04

Also, how much longer before you go back to work and will you go back full time?
I can understand about the DH thing, if he's not on the mortgage they cannot take him into consideration.
As for the others I would see a good mortgage broker or IFA who might be able to help you out. Sometimes there are ways round these things.

theoptimist · 17/09/2009 14:16

Thanks for your responses. I was planning on going back in 4 months time part time, so I wouldn't earn what I did. But my partner and I share mortgage. I guess I have to go back full time then?
Deposit will be about 28%.
It's Nationwide. I understand about careful borrowing, etc., but it's a mortgage I have, pay, etc. Silly they have no process to deal with these situations (well so it seems). They'll effectively own a house that their own calculators state is 65k more than my mortgage, whereas their calculators state my house is only £10k more than my mortgage. Makes business sense for them to do it! If I can't pay (which they want to guard against), they get to re-possess a much better house. I guess it's because everything runs on inflexible computers now.

When you're self-employed you have to have 3 yrs of accounts. I had that situation a while back too.

OP posts:
theoptimist · 17/09/2009 14:17

Also, I saw a mortgage broker who told me he could do nothing. Maybe I need to write to someone higher up.

OP posts:
girlsyearapart · 17/09/2009 14:36

we have a fab fab financial man. He lives in Windsor if you're anywhere near he could help?

BigGitDad · 17/09/2009 16:21

The valuation side of it is a problem at the moment. I have had clients get their properties re valued as the computer mdels used by the lenders are not accurate at all.
Being self employed, lenders like Woolwich who have competitive rates at the moment and Abbey will accept two years accounts. I think Cheltenham and Gloucester will accept one years accounts and a projection from the accountant.(They used to anyway)
Thats why you should see a broker/IFA or two and see what they say. Even phone a couple and chat over the phone and see what they say.

Zone2mum · 29/10/2009 11:38

I am about to be in similar boat and would be grateful for any advice.
We have just received an offer on our home, and are about to be making an offer on another (more space needed due to baby's arrival).
However, I am worried about porting while on maternity leave as I have received conflicting advice from my bank (fixed rate) as to whether I need to effectively re-apply for it, even though it was sold to me as portable.
When I took out the mortgage (I was remortgaging) I specifically told the bank that I was on maternity leave & that it was important to be able to port as we plan to move.
A further complication is that the mortgage is currently in my sole name, but when we move it will be in both our names. My husband shouldn't have a problem meeting any affordability criteria, but I may drag him down while I am on leave.
I do not plan to go back to work until I absolutely must, our son is only 5 months old.
We will not be borrowing more to move, just porting. LTV will be better, so I can't see why bank would refuse but am aware the banks are being ultra-cautious and box-ticky.
Should I get my husband on the current mortgage and deeds now, or should we simply do that paperwork for the new property? Would speaking directly to the underwriters help? I don't want us to apply and then be turned down, I don't want to lose our buyer by causing any delays either. Nor do I want to pay a redemption penalty if we switch lenders.
It doesn't make sense to me when we are already paying this mortgage, the bank was on notice about my situation and plans to move, and the property we intend to move to would offer them better security...
Any thoughts greatly appreciated!

nothappywithhome · 18/10/2010 15:37

Hi, has anyone managed to move mortgage successfully during maternity leave? I am in the same position, just gone on maternity leave, will go back to full-time in about 6-8 months. It would be a great time to move as we are less busy with works. I am with Woolwich and my mortgage is portable, and it won't increase (probably even go down). Positive experiences needed!

soniaweir · 18/10/2010 17:17

We recently moved house when i was on mat leave and my DH has a new business and we wanted to port our mortgage so what we did was....lie. we were lucky as they never asked for any payslips. DH asked before what we needed and they said nothing! and i never told them that i was on Mat leave and not planning on going back! like you on paper it looks like we can't afford the payments but in reality we can unless DH's business stops doing well.

good luck!

Vine · 18/10/2010 17:41

I am on maternity leave and have an agreement in principle. The mortgage company wanted wage slips (you still get these but it reads as mat pay), old wage slips stating salary and a letter confirming my return to work date. Ask if your mortgage company will accept a letter.

Vine · 18/10/2010 17:42

Sorry the letter is from your employer to you not from you to the mortgage provider!

Tootlesmummy · 19/10/2010 08:12

I am with the Nationwide and I was able to move whilst I was on maternity leave based on my previous salary and the equity I had in the house.

Do you have your bank account with them as well? I know sometimes this can make a difference as they can see the spending on the account which can sometimes swing it in your favour.

nothappywithhome · 19/10/2010 11:40

I am with Woolwich and the news they told don't satisfy me :( They would be taking into consideration my maternity pay and would assess it as a new application but on the same interest rate. That means, I would be paying new application fee as well Angry and I wouldn't be able to move mortgage until I go full time. I told the guy it sound as discrimination, but he stuck to his point.
I guess it will be easier (and possibly cheaper) to pay early exit fee and get mortgage with someone else while on maternity leave, whilst considering my full salary!

idrilis · 20/10/2010 14:46

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Message withdrawn at poster's request.

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