Mortgage & Pregnancy

sg0102

Hi all,

My wife and I are expecting our 2nd child, and so the time has come to look for a bit more space and a new house!

Before we speak with any brokers/banks, does anyone have any advice on arranging a mortgage with impending maternity leave? My wife plans on taking a year off, and then going back 3 days a week.

We can afford the mortgage repayments we want on my salary alone, but not sure they would lend the required amount just based on mine...

Any thoughts or advice would be greatly appreciated...

Also - it's been a while since we moved house - are fee free brokers still easy to come by??

Thanks in advance
Steve

Dave_Ham

Hi Steve,

It is pretty standard now to achieve income to be used whilst on maternity so do not worry at all.

Obviously the said lenders will factor childcare or potential childcare costs into their affordability calculators and this will vary depending upon the specific lender.

In terms of fee free brokers, there are some notable brokers "of size and no doubt marketing budget" that are well marketed across here and other mediums.

They should be able to source you an appropriate solution, although I personally feel you cannot beat a personal recommendation from friends/family and you are likely to pickup a smaller and more flexible outfit..

Good luck though..

sg0102

Great - thanks for the (swift) reply Dave, sounds good.

I have had a recommendation, since i posted, for a fees free, whole of market broker which sounds good. Only other question i had, is i'm still slightly confused by the difference between this, and an independent broker? Do you have a view of which is "better"?

Thanks
Steve

Dave_Ham

Depends on some variables to be honest..

Say yours is a straightforward case, which a broker may charge £595 for on an independent basis..

If you then save £2,000 vs a whole of market option over 2 years - which do you believe is a better option?

Some clients to be honest prefer to pay nothing upfront and would rather it all being packaged, but really depends upon you...

Hope that makes sense, feel free to ask any questions...

sg0102

yeah ok - makes sense.

worth checking both then essentially?

Cheers
Steve

Dave_Ham

Yeah - I would think so.

Most brokers can offer both, but whether they do is a different ball game as some brokers I know cannot understand why you would not get paid on completion with a proc fee.

That aside, I view my role as being remunerated based upon advice and specifically the impact that advice has on the monetary saving of my clients.

If clients think I get paid to submit the application and photocopy the documents, I would be appalled.

Aside from advice on product, solicitors, Estate Agents etc. all require support and advice and largely in the evenings and weekends so for me it would be essential.

Although that said, not every clients has the same needs and expectations and that is why it is unique and personal to you.