Applying for Mortgage When Pregnant

kittykatkat

We have sold our property and looking to buy another more expensive one, requiring a larger mortgage. We will have 20% deposit and the mortgage will be around 3 times joint basic income. We are due to have our first child in 6 months... do we need to declare a dependent if applying before it's born? If we apply after it is born, during paternity leave, will that affect the application, e.g they see my payslips?

Also, I intend on returning to work part time, so my income will drop 50% and mortgages we are looking at now would then be nearer 4 times joint basic income. We know what we can afford but the banks would reduce our potential mortgage amount if we applied on post-paternity leave income.

Ps. We have carefully calculated all expenses in different scenarios up to 8% base rate on fixed salary, post birth. We lead a frugal lifestyle, have extra self employed incomes, and tens of thousands in the bank even after taking away the deposit. We are both near the start of our careers... please don't turn this into an affordability thread, we need advice specifically on mortgage applications just before pregnancy or during maternity leave. Anyone had experience similar to this? Thanks. :eek:

Adorabelle_2

Hi, We applied for a mortgage while I was on maternity leave and was down to very little pay. Our mortgage provider were happy for us to progress with it if I was able to provide proof that I had a job to go back to and would be getting some money again! My employers were happy to provide this and we got the mortgage ok.
I am now pregnant again but haven't told the mortgage provider yet but atm I am receiving full time pay and will be for a good few months before I start my new maternity leave. We are still waiting completion on our new property.
Not sure if all mortgage providers are the same though (we are with HSBC).
I know my situation is slightly different to yours but I hope this helps. Congratulations on the baby and good luck

SavvyStudentSaver

I think if you apply for a mortgage on the basis of you full time job, KNOWING that you wont be going back to it, then it's fraud. But I'm not sure.

Oneday77

SavvyStudentSaver wrote: »

I think if you apply for a mortgage on the basis of you full time job, KNOWING that you wont be going back to it, then it's fraud. But I'm not sure.

I doubt that as its only possible at this point. Anyway if they will still have 4 times joint income the it's probably fine.

kittykatkat

Committing fraud sounds a bit extreme! There is no question on the mortgage forms asking whether you are pregnant, whether you intend to go part time in the future, etc. It only asks about the situation as at the time of application, including any dependents. Currently we have no dependents and 2 full time incomes, so surely if we applied now, we'd not be lying, we can only answer what's in front of us?

Toto

Seeing as you don't get your MAT-B1 form until you are 20 weeks I would have thought that you aren't legally obliged to disclose a pregnancy at this stage.

Just my thoughts though, I could be wrong.

Adorabelle_2

Yeah that's what we thought kittykatkat. Situations change for whatever reason.
I planned to go back to work part time, but due to accrual of annual leave, new leave allocations and then a new maternity leave it was more logical to go back to work full time rather than part time like I had originally intended. Lucky for me that since the beginning of this year until June, when I start a new maternity leave, I will be paid full time yet actually only have to work 5 weeks full time!
As long as you can prove to your mortgage provider than you have a job and will be able to pay off your mortgage I don't think it matters to them whether you are pregnant.

pauletruth

they can't ask you that question. they would be discriminayting if they were to ask a woman if she was pregnant or planned to be. as long as you can afford the repayments and have not lied then don't tell them its none of their buissness.

sockpuppet

They will know you are on maternity leave when they request your latest three months payslips , and these then show maternity pay and not salary.

Some lenders will be fine with this if you can provide evidence you will be returning to work, and on what income. Some wont take this income until you are physically back at work.

You need a broker to check which lenders will accept your income while you are still on leave.

If you apply whilst pregnant, no they will not know and will be unlikely to ask. In reality, you shoud really inform them what will be happening - but this is entirely up to you if you are cconfident you will be able to afford it. Some people may only find out they are pregnant after they have applied.