Remortgaging and Maternity leave?

orangebloss

Our mortgage comes up for renewal next August after a 5 year fixed deal and we're already nervous about it.... we're thinking about having child number 2 but if we're lucky it will mean I'm on maternity leave when we are trying to sort out our mortgage.

My employer has a reducing maternity pay scheme so I'll get 90% for 6 weeks, then 60% for 20 weeks and 40% for the remaining 26 weeks which means I'll be on about 13k in real terms and hub will be on around 40k - bearing in mind this will only be for a year until I go back to work (or earlier depending on finances and childcare costs) - how big an impact would this have on a 155k mortgage application (house is currently worth around 230k but I imagine this will drop over the next 12 months) and will our current provider (Halifax) withdraw our mortgage with the change in circumstance (albeit temporary?)

Any thoughts/advice welcomed!

sarkin

If you dont tell your current provider they will not ask, if you need to switch lenders than you may have a problem. I have heard of people not mentioning they are on maternity leave when remortgaging to a new lender. But as this is an open forum I would say it can't be done. Best phone your current lender aske them what rates are avaliable and take it from there.

fraggle8

i recently applied to remortgage with first direct whilst on maternity they asked for 3 months of wage slips which obviously showed maternity pay so i just included a letter from employer showing my annual wage and everything went through fine did not effect it at all

tinkerbell84

sarkin wrote: »

If you dont tell your current provider they will not ask, if you need to switch lenders than you may have a problem. I have heard of people not mentioning they are on maternity leave when remortgaging to a new lender. But as this is an open forum I would say it can't be done. Best phone your current lender aske them what rates are avaliable and take it from there.

As the OP is 'thinking about having child no 2' I don't think they're looking at this August for the remortgage

surreysaver

At the end of the day, you still have a job, a salary. You are just temporarily earning a reduced amount of money. I wouldn't have thought it would affect a mortgage application, although it may depend upon how far through your maternity leave you are.

happybroker

what most people seem to be missing is the detail you kindly entered on the OP regarding income.....I don't see too much of an issue at all.

to answer your 2nd question re Halifax withdrawing your mortgage, that's a no, they won't and they may still offer you a new rate.

Good Luck, sounds like exciting times ahead and it's nice to hear some good news!