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Mortgage and new baby, I need your advice!
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LauraFox
Posts: 48 Forumite
Hi Money Savers, I need your advice urgently!
I was made redundant last Xmas, then had my baby in June this year, and I m currently getting £500 pm maternity allowance. We visited the bank late on my pregnancy asking for a mortgage, we said we were looking for property around 110K with deposit around 35K, my husb earning 15K. They said ok, but made term of the (tracker) mortgage long which we didnt like. We asked how we could improve this, they said 'bigger deposit'. But we did not get an offer in principle thingy, we just discussed and she gave us some printouts.
We just had our offer accepted for a house we love at 107K. Today we went back to the bank with 57K deposit (tracker mortgage requesting at least 40% deposit), but now they re saying they cannot lend us 50K because I m unemployed, which did not seem to be an issue before. I plan to find a job or even go self-employed once I stop getting my maternity allowance, which is in December, but if I go back to work now (IF I find a job), it will only be 3hrs every evening, so I wont be earning as much as the maternity allowance. So why is bank making a big deal about it now and say they can only lend us a shocking 25K?
The other solution, they said, is for my husband only to get the mortgage out and that means the house will be on his name only, which isn’t ideal, since I contributed on the deposit, but I m willing to go down that road just to get the finance. They say with this option they can lend 41K which is still not enough. We managed to collect 57K begging from relatives and I just cannot grasp why with a deposit 50%+ we are being denied the mortgage?
We are meant to see the bank’s manager on mortgages again this week to re-discuss, I just want some advice on how to convince them, we have excellent credit and I since we are currently paying rent 550pm, surely we can cope with 350pm mortgage repayments.
I think I ve put all info, please ask if u want any clarification.
Your thoughts, please, thank you all. :A
I was made redundant last Xmas, then had my baby in June this year, and I m currently getting £500 pm maternity allowance. We visited the bank late on my pregnancy asking for a mortgage, we said we were looking for property around 110K with deposit around 35K, my husb earning 15K. They said ok, but made term of the (tracker) mortgage long which we didnt like. We asked how we could improve this, they said 'bigger deposit'. But we did not get an offer in principle thingy, we just discussed and she gave us some printouts.
We just had our offer accepted for a house we love at 107K. Today we went back to the bank with 57K deposit (tracker mortgage requesting at least 40% deposit), but now they re saying they cannot lend us 50K because I m unemployed, which did not seem to be an issue before. I plan to find a job or even go self-employed once I stop getting my maternity allowance, which is in December, but if I go back to work now (IF I find a job), it will only be 3hrs every evening, so I wont be earning as much as the maternity allowance. So why is bank making a big deal about it now and say they can only lend us a shocking 25K?
The other solution, they said, is for my husband only to get the mortgage out and that means the house will be on his name only, which isn’t ideal, since I contributed on the deposit, but I m willing to go down that road just to get the finance. They say with this option they can lend 41K which is still not enough. We managed to collect 57K begging from relatives and I just cannot grasp why with a deposit 50%+ we are being denied the mortgage?
We are meant to see the bank’s manager on mortgages again this week to re-discuss, I just want some advice on how to convince them, we have excellent credit and I since we are currently paying rent 550pm, surely we can cope with 350pm mortgage repayments.
I think I ve put all info, please ask if u want any clarification.
Your thoughts, please, thank you all. :A
0
Comments
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Hi,
Welcome to the forum. Firstly can i say that you made mistake number 1! you went to the bank. go and see a mortgage broker. I have just ran the figures quickly through some affordability calcs and (depending on any existing debt) many lenders will allow you to use and income support as an income, this takes by my reckoning that you can borrow up to £68,700 add this to your £57k deposit (well done on getting that by the way!) takes us to a maximum purchase price of £125700.
Get your self booked in with a mortgage advisor!! repayments on 68k would be buttons!
Good luck0 -
steveM1978 wrote: »Hi,
Welcome to the forum. Firstly can i say that you made mistake number 1! you went to the bank. go and see a mortgage broker. I have just ran the figures quickly through some affordability calcs and (depending on any existing debt) many lenders will allow you to use and income support as an income, this takes by my reckoning that you can borrow up to £68,700 add this to your £57k deposit (well done on getting that by the way!) takes us to a maximum purchase price of £125700.
Get your self booked in with a mortgage advisor!! repayments on 68k would be buttons!
Good luck
Hi there, We were indeed planning to go to brokers but they admited they do not have access to the whole of the market, but only to the whole of the market available to brokers.. So we looked around using internet comparison websites and we believe we have found the best product for us, with the bank we bank with.. Lifetime Tracker Mortgage at 2.09%, no fees, free valuation, etc etc...0 -
Im not sure why they say just your husband go on the mortgage.. and then they can lend 41k... I went on the mortgage when I didn;t have a job, but my husbands wage covered it... For all they know you could be putting the whole 57k deposit in!? Did they say why?
Agree with Steve M on the broker.. even if you know which mortgage you want, they can help smooth the way...(especially if they are whole of the market attached to the estate agents selling the property!!!)0 -
One word affordability is why the amount you will be advanced is so low.
Banks are acting responsibly after a decade of allowing people to over extend themselves.
Suggest you wait until you are back in employment before applying.0
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