Skipton Mortgage application - can they really do this?

garsij1

Hi all,

looking for some advice.

We had a mortgage approved in principle for a LTV of less than 75% with the skipton on a 5 year fixed rate.

The mortgage was then declined. The reason they have given for this is that my Wife is on Maternity leave for more than 3 months! (Even though my wife gets 100% pay for the 9 months that she is on leave)

Is this actually something they can do? is this some for of discrimination?

Really really upset about this, just wondered if there were any grounds for a complaint?

any advice would be greatly appreciated

Kind regards and TIA

CloudCuckooLand

The criteria they choose to apply to lend out their own money, is their affair. Some lenders don't consider maternity leave, at all.

Perhaps they have stats which demonstrate a lower likelihood of returning to work, above 3 months or somesuch. Which implies a lower likelihood of you continuing to be able to service your mortgage. They may feel this increases the risk they would be taking if they approved the mortgage.

With a massive shortage of mortgage funds, they will natually wish to give their limited funds to the applicants most likely to be a low risk.

They probably have multitude of applicants and can therefore afford to pick the nearest to 100% perfection, as they see it.

originalmiscellany

It depends on what their criteria are for lending. If it says in the paperwork what the lending criteria is that should bring some light on the situation.
I can see why you're annoyed, but can also see it from the providers, your income isn't guaranteed long term, which will affect the chance of you defaulting
Check your paperwork to see what they say, and best of luck

Thrugelmir

garsij1 wrote: »

Is this actually something they can do? is this some for of discrimination?

Really really upset about this, just wondered if there were any grounds for a complaint?

Your wife does not have to return to work, or may do so on a reduced income ( part time hours). So the lender has no guarantee as to future income. Thats the point at issue. Not the next 9 months.

magpiecottage

The Financial Ombudsman Service discussed this way back in 2004 in Ombudsman News.(Appearing in Have I Got News For You any week now!)

Case study 37/3 says "The firm refused to give Ms Y a mortgage, because she was pregnant. Nowadays all women have the right to return to work after maternity leave, and many do. So the firm’s practice was discriminatory on the grounds of sex."

Cite this in your complaint.

anselld

Would certainly seem to be discrimination based on ...
http://www.direct.gov.uk/en/Governmentcitizensandrights/Yourrightsandresponsibilities/DG_10014458