Lender does not accept I am employed enough to give me a mortgage!

HousewifeFromHell

This is my first post, so please be gentle with me!

Last year my husband and I checked with out mortgage lender to see if we could borrow a bit more to extend our home. My husband is self employed and I am a highly paid professional with a 12 year employment record with my employer. Our mortgage provider said yes, and told us how much we could borrow. Fast forward 5 months, and I have been busy. I have got planning permission, found a builder - and had a baby. We went back to our provider and asked for them to process the mortgage extension we had been offered, and they have cut the amount they will lend. The reason they have given is that I am on maternity leave and may decide not to return to work after they have lent us the money. The new loan has been based solely on my husband's income, and for the purposes of the bank's paperwork the bank has described me as a housewife.

Now I have no problem at all with the term or connotations of 'housewife,' if I was one. But I am an employee with current contract of employment, a payroll number, an income, a return-to-work date and fully intend to continue working once I have finished breastfeeding. I have made a huge investment in my career, and intend to carry on working in the next few months.

Notwithstanding the fact that a lender can decide who they lend to and who they won't, are they within their rights to ignore solid financial evidence that I can provide them with and ignore my contract of employment?

The Equality Act 2010 guidance for businesses has this to say:

People who access your goods, facilities and services are protected from direct discrimination on the basis of a ‘protected characteristic’. The relevant characteristics are:
• disability (definition changed)
• � gender reassignment (definition changed)
• � pregnancy and maternity
• � race – this includes ethnic or national origins, colour and nationality
• � religion or belief • � sex, and • � sexual orientation.

So clearly they cannot directly refuse to lend the money based on the fact that I am on maternity leave. Where it gets a little unclear is whether I can argue that I being discriminated against due to being on maternity leave or whether it is because I am currently on SMP (although I can provide recent payslips and a letter of usual salary from my company.) The lender has refused to discuss this further, just saying they will put me down on the paperwork as a housewife as I am not at work at this very minute in time.

Am I being discriminated against, or can they do this?

Thrugelmir

As you intend returning to work. Why not wait until you have done so then reapply.

As the application is for additional funds to extend as opposed to a mortgage for purchase. Then the lender could decline without reason in any event. You would have no grounds for complaint if they took this route.

AnnaV

I would agree with you, you are not a housewife.

AnnaV

Try asking Equality Human Rights for advice:

http://www.equalityhumanrights.com/uploadedfiles/sd74questionnaire.doc

EHR helpline on 0845 604 6610


Interested as we are hoping to buy this year, and yep, I'm pregnant. In fact I would guess a significant number of applicants are, it's a good time to get a bigger place really isn't it?

Let_Us_See

A lender can decide whether or not they wish to lend. However, in this case the lender has agreed to lend but only based on husband's income. I believe you are facing positive discrimination and should make a formal complaint. From my previous experience in similar circumstances the lender has always caved in.

Thrugelmir

AnnaV wrote: »

Interested as we are hoping to buy this year, and yep, I'm pregnant. In fact I would guess a significant number of applicants are, it's a good time to get a bigger place really isn't it?

OP is looking to extend not purchase.

HousewifeFromHell

Thrugelmir wrote: »

As you intend returning to work. Why not wait until you have done so then reapply.

I work abroad a lot. Last time I had major building work done I was away for 5 days and came back to find work had not been carried out as I wanted it. The light switches in the wrong place still bug me! It seemed logical to build the extension while I was around to supervise it.

AnnaV

Also Banking Ombudsman: http://www.financial-ombudsman.org.uk/publications/ombudsman-news/37/banking-equal-access.htm - there's a test case at the bottom which says it is discrimatory to refuse a mortgage on the grounds of pregnancy, so I can't see why it would be any different for maternity leave.

AnnaV

Thrugelmir wrote: »

OP is looking to extend not purchase.

Same issues apply though…

AnnaV

Let_Us_See wrote: »

A lender can decide whether or not they wish to lend.

True, but they do not have absolute discretion- they cannot refuse to provide a service based on someone's race, for example. They have entered the market and have to play by the rules. Just like the Christian B&B owners…

HousewifeFromHell

Thanks Anna! A little bit of ammo to be going on with.