changing mortgage whilst pregnant/SAHM

Morty_007

Hi all,
I wonder if you can help put my mind at rest? We have just bought our 1st house on a 2 year fixed rate repayment mortgage with Abby.

We are planning to start a family ASAP (I.E as soon as it happens) but I have had a terrifying thought. I am the major earner so how do we go about getting a new mortgage deal at the end of the 2 year fixed term once I am pregnant/on mat leave and eventually a SAHM (Oh go on, let me dream!). I am worried that no bank will touch us once my salary isn't coming in and we will have to stick with the standard rate at Abbey instead of being able to change the mortgage to a new scheme/lower fixed interest rate.

Is this likely to be a problem? Very stressed and well, just stressed! LOL!

Thanks for any advice in advance.

Rachel

biblee

Hi Rachel
I am sure that others with more knowledge will be able to give you a clearer response, but from a personal note, we have just brought our first house, the mortgage is in my name only as I am the main earner, and I am now 26 weeks pregnant and it didnt affect my application. I assume that if it didnt affect our application for first mortgage it would be unlikely to affect remortgage. But I am no expert.

Have fun trying to start your family!

Martinslovechild

I think it really comes down to whether you do decide to go back to work or not...

If you're not working, the banks will realistically look at just your OH's salary, but some banks do now look at affordability rather than standard salary multiples; however, it's unlikely that affordability would offer much higher borrowing levels given that your OH would be supporting 3 people on the one wage.

I'm assuming by your level of stress that the payments will increase substantially once the discount period ends. Have you received details of the increase? Depending on the size of your mortgage (and whether you are interest-only or repayment), the difference in payments may not be as great as you fear.

chinagirl

Yes, I am interested to know, how much is your mortgage for, and what rate are you paying at the moment?

looneyleo

Hi Morty...

can only tell you my experience...we remortgaged when i was on unpaid maternity leave and had no problems at all. The bank just asked me to confirm my current salary and they took that into account during the application. Would suggest that you don't tell them you may not go back to work and get all this sorted out before you maternity period ends (i.e. one year from when you leave work) because then you won't be "unemployed" just on maternity leave. Good luck in all respects...mortgage...baby making...and taking care of bundle if it arrives for you...

moneysavvysue909

Hello,
My partner and I are looking to put the jumble of mortgage products together into one package with our lender, as we embark on the rocky road to a loft conversion.
We are in a 10-year product at a reasonable rate and I have found that we could potentially benefit from pulling everything into one package with a new rate.
However, the lender wants to charge £2,500 for "ending the mortgage" and another £500 arrangement fee. So, this causes us some concern, as we have to come up with a tidy sum of money in order to save money. Chicken and egg, eh?
Any suggestions on how to beat the lender's game of making money from old rope?

Cheers,

Sue

Gingham_Ribbon

You may get more answers over on the mortgage board so I'll move it for you.

Good luck with your stay home mum dream.

lex

I had a similar problem, after the birth of my daughter, I was doing some contract work from home, and had a very much reduced income (was the higher earner too). I didn't think we stood a chance of getting a mortgage elsewhere, seeing as Nationwide were the only people that would lend us enough in the first place based on affordability.

When our deal ran out, mortgage went up massively, so phoned Nationwide and asked for a better deal, which they did immediately for me. No real questions. So if you can't go with another company, you might be able to renegotiate with the same company. Did have to pay the £250 arrangement fee, but that was significantly less than the increase so well worth it.

HTH

lex