re-mortgage and pregnancy

yoblack

Dear All,

I have hit an unexpected problem whilst looking to re-mortgage. We are coming off from a nice Halifax fixed rate on January 09 and on to their SVR, which is rip off at 7%. So I though it's time to look to re-mortgage.

I'm keen now to move to a tracker mortgage. Best deals First Direct. We have sound finances, joint income of 78k, no other loans, savings.

Talked to them, but me honest fool, told them that my wife is off to maternity leave from January for 6 months. That was it, they refused my application as too risky. My sole income x 3.5 won't match the required sum. Obviously in the meantime they've performed a check on my credit history (which was absolutely spotless)

Now I have three questions:

1. Should I keep on trying with other lenders or I will get the same treatment everywhere ?

2. Should I keep my mouth shut about my wife being pregnant and hope they won't find it out?

3. Will my credit history show a refused mortgage/loan?

Thanks for your answers and I will also appreciate any suggestions of lenders who have good tracker deals to re-mortgage.

Regards,
O

opinions4u

Okay, first of all Halifax svr reduces to 6.5% on 1st November and they also have tracker deals for existing customers. Ask them what's on offer.

Also, ask First Direct to be specific about why they have declined you.

The mortgage lender is not allowed to turn down your application on the grounds of pregnancy. This is sex discrimination and it is against the law. Get advice from an experienced adviser about what to do. I don't see a need to disclose the pregnancy to other lenders where the intention is to return to work after the maternity leave period. Merely state current incomes.

http://www.adviceguide.org.uk/index/family_parent/housing/buying_a_home.htm

Your credit history will show a credit search. Nothing wrong with shopping around, although I'd not recommend excessive searches.

Hope this helps.

yoblack

Hi Opinions4u,

Thanks for your answer. Yes in the meantime I've noticed that Halifax reduced the SVR to 6.5. I guess it is in anticipation of a rate cut next week, so they won't have to do it Last time they haven't followed suit with the rate cut.

I will check with Halifax their current tracker offers but they don't seem to advertise them on their web-site. Just some very poor fixed rates.

Anyway I will get back to FD as well and complain. And keep on searching as todays' mortgage market is quite "poor" on offer for people with LTV between 80% to 90%. Or at least I couldn't find too many competitive offers.

Regards,
O

herbiesjp

Thanks for your answer. Yes in the meantime I've noticed that Halifax reduced the SVR to 6.5. I guess it is in anticipation of a rate cut next week, so they won't have to do it Last time they haven't followed suit with the rate cut.

No - it's in reaction to the rate cut earlier this month.


You are right to disclose the fact your wife is going on maternity leave - all you then have to do is state when your wife is going back to work.

There are other lenders that go higher tham 3.5 times a sole income, so they may be a better choice of lender, however most lenders will use the joint income if it is her intention to go back to work.

Before letting lenders carry out credit searches, they should be able to tell you if you fit criteria and what income they will take into account when agreeing a mortgage amount. If it does not fit criteria, then no need for them to carry out a credit search.

Alternatively, go via a broker and they will be able to come back to you very quickly with some options

You are right about the deals on offer - those LTV levels are now considered higher risk in light of falling house prices, and the higher rates reflect that fact

pokey128

Hi
I am on Maternity leave just now and am just sorting out our remortgage to First Direct. The woman I spoke to (Sue) was very helpful and said I just needed to send a letter in with my application from my employer stating that I was returning to work on a specific date and my salary was x.

Not heard back from them that there is a problem with this so hopefully all will be ok!
Good luck

looster

We just remortgaged and i am on maternity leave - we went through Nationwide who required a letter from me confirming I was going back to work, letter from employer confirming I had told them I was goinng back to work and standard employers reference.