Mortgage & Return to Work After Mat Leave Dilema

edr2008

Hi,

I would appreciate your thoughts...

I am due to return to work soon following maternity leave. Financially we could afford for me not to return, however the problem would be the mortgage and remortgaging next year.

The mortgage is in my name, and due to a few poor financial decisions made by my partner in the past (culminating in a DMP - ending in 4/5 years) a joint mortgage or mortgage in his name is out of the question for the next few years at least.

As I see it, the only option would be for me to stay with my current lender and see what they offer me when my current deal comes to an end (summer next year), or go onto the variable rate after. I assume a mortgage/deal with the same lender and no additional borrowing would not require re-underwriting? I obviously would not be able to shop around as I would not have any proof of income as I wouldn't be working.

Also - Am I obliged to inform my mortgage provider if my working circumstances change?

I could always just return to work...!!

I look forward to your views.

c0c0nuts

Hi edr!

If you do a new rate with your current lender, you won't need to provide any further information about your circumstances, neither will you undergo any credit checks etc.
As long as your mortgage payments are up to date then there is no reason for you to inform them either.
You are entirely right about being limited to shop around due to lack of income records.

We had this dilemma a few months ago when I came to return after my maternity leave, in the end I did a new rate with my existing lender and went back to work part time to leave us a bit better off.

We also had a few financial troubles occur inbetween moving house and getting a new rate after our business went belly up, so decided to stick also to build up our credit rating.
Its worthwhile noting that if your partner has had credit problems and you live together you may linked by other financial products? and this will be taken into account on a new credit score for a new mortgage whether in joint names or not.
Personally we managed to get a new rate on a par with what we were paying so we didn't end up any worse off.
I must admit that going back part time hasn't been as bad as expected-its nice to get some adult conversation and company if you know what I mean.
Best of luck in your decision.

Claire x