Re-mortgage, but Im now on Maternity Allowance

NannyV

Hi, our mortgage is up for renewal in January, we are currently with the Abbey at 5.4% so we are going to have to pay more - but I am now on maternity pay, and before this I was newly self-employed. So surely we are going to have to just stick to Abbeys variable rate as my income is now so low we wouldnt be able to borrow the remaining 174k.
Am I right in thinking we will have to stay with the Abbey? Would we even be able to change to one of their fixed rate deals rather than the variable?

Locoblade

If I don't say it someone else will, but probably not enough info for the experts to go on there. If you post up all the figures (mortgage amount, years left, both your incomes etc) people will be able to help advise.

beecher

You should get a new deal with the Abbey, as it won't be counted as a remortgage and so they shouldn't look at your salary.

NannyV

Sorry for lack of info.
The remaining mortgage is around 174k, house value around 200k, oh on 27k, and i am on maternity pay so not a lot, and was only self-employed for 10 months before, but that years gross wage was roughly 18k.
I think we have around 33 years left to pay off.

Oddgy

NannyV wrote: »

Sorry for lack of info.
The remaining mortgage is around 174k, house value around 200k, oh on 27k, and i am on maternity pay so not a lot, and was only self-employed for 10 months before, but that years gross wage was roughly 18k.
I think we have around 33 years left to pay off.

Hi NannyV. We are in the same position. Our mortgage deal runs out in December, so on 1st January we too will go onto the Standard Variable Rate at 7% with C+G, (Currently on fixed at 5.09%) so a hell of a jump! My Fiancee is also on Maternity leave now, so i posted a question a few days ago with the same concern, as now we only have one wage to go on.

Basically the advice i was given by the guys on here was to go back to my current mortgage provider and get another fixed deal with them as they wont need to see payslips etc, as they already did this the first time round.

So lets hope C&G has good deals, and in your case Abbey too otherwise we'll be snookered!

Good luck!

2latenow

I'm in a similar position as Oddgy -- wife on maternity (just) and borrowing with C&G. I went to see their "adviser" (salesperson) this week and she didn't ask about changes in circumstances -- despite having left a message on my wifes phone that she is now on maternity leave. I'd also asked a friend (that works in a related finance role) who also thought that such "temporary" changes wouldn't be taken into account.

I guess the OP's position may be seen as different at she would be returning to a self employed position.

Of course regardless of getting the mortage loan, we need to be able to pay the monthly !

Ian_Griffiths_Halifax

Lenders take a different view on Maternity Pay depending one whether you are Employed or Self Employed.

If you are Employed, then A&L for example, would use the normal salary but would want confirmation that you would be returning to your original position and on the same salary or use the new salary.

If you are Self Employed, then Maternity Pay wouldn't effect the amount loaned by a company as you would use the last years (or last 3 years depending on the lender) accounts as this is the Annual Earnings.

In the cases of NannV and Oddgy I believe both were newly Self Employed and so wouldn't have the Accounts necessary to use for mortgage purposes.

NannyV

Well I suppose even if i tell the abbey about the change of income, they are not going to say we cant keep our mortgage with them, just seems we will be limited to their deals, so cant shop around for a lower rate. Fingers crossed our mortgage companies do some good rates

Killmydebt_2

Hi,

Not sure if I'm posting in the right thread here but I'm sure someone'll tell me if I'm not!

I'm employed and my wife is self-employed. We just about get by every month without going over the overdraft limit. We spend virtually nothing other than essentials and have got a lot of our outgoings down as low as we can. My wife's income is variable by up to £50 a week so it's harder to budget.

Main problem is we're trying for children and I'm going mad worrying what we're going to do when my wife needs maternity leave. I would like my wife and I to be able to adapt to new life post baby without the worry of how/when my wife can get back to pre-baby earnings.

I guess its just a case of getting in touch with cccs or the like but just wondered if anyone else has been through similar and has any advice? Many thanks.

happybroker

Killmydebt, it's a tricky one to give a "nice to hear" answer to is that as children, like mortgages, cost money and, at the risk of sounding completely off the wall, need budgeting for if they are being planned.

you may qualify for tax credits which could help but other than that there isn't too much help as pregancy tends to self inflicted if you know what I mean.

A friend of mine who is self employed went back to work just 2 weeks after having the baby, she did the same with the first one also. Some people can manage that kind of thing but it's not for every one. I'm sure any self respecting "agony aunt" would say you need to talk about your worries.....but then I'm just a mortgage broker!

All the best, my post is with the best of inentions

Ian_Griffiths_Halifax

Killmydebt wrote: »

Hi,

Not sure if I'm posting in the right thread here but I'm sure someone'll tell me if I'm not!

I'm employed and my wife is self-employed. We just about get by every month without going over the overdraft limit. We spend virtually nothing other than essentials and have got a lot of our outgoings down as low as we can. My wife's income is variable by up to £50 a week so it's harder to budget.

Main problem is we're trying for children and I'm going mad worrying what we're going to do when my wife needs maternity leave. I would like my wife and I to be able to adapt to new life post baby without the worry of how/when my wife can get back to pre-baby earnings.

I guess its just a case of getting in touch with cccs or the like but just wondered if anyone else has been through similar and has any advice? Many thanks.

I'm sorry if this isn't the answer you wanted, but here goes......

Why are you even considering having kids when you are struggling without one?

Why are you considering you wife giving up her Self Employment to have a kid when you are struggling while she is earning?

It doesn't make sense to increase your outgoings when you expect a reduction in income.

If you must increase your family consider buying a dog!