Getting a mortgage....

becominganobsessivesaver

I'm waiting for a developer to get back to me with an offer on part ex/new build. It's their year end in July and they seem more desperate to sell the property than we are to move. I'm just trying to get straight in my head whether we would be able to get a mortgage, if they come back with figures acceptable to us:

Mortgage outstanding £99k (currently on 1.48% - Woolwich)
additional borrowing £61k

deposit £40k (so 80% LTV)

My salary is normally £47k, but I am currently on maternity leave, full pay ends on 25 May (so my recent payslips show full salary). I am planning to go back to work in October full time, so there would potentially be the first 3 months of the mortgage when I would only be taking home about £600 per month. We would, however, have an additional £20k of savings to cover living expenses in this time (not that I'm going to need the £20k to live, but it's there if we need it!!!)
My husband is self employed, so we can't use his income (only 1 year accounts) and we have 2 dependents (childcare is covered in addition to my salary). We have no other debts, have never had late payments or defaults, and I would be very surprised if we didn't have an excellent credit file.

So anyway my ideal scenario would be to port my current mortgage and take additional borrowing with the Woolwich - is this likely to happen?

If this doesn't happen any idea of lenders which may look at our scenario favourably, I expect we would need to go through a broker, but it would be interesting to know if there are any lenders more flexible than others in this type of situation.

I just want to make sure I am as prepared as possible, as there's little point in negotiating hard when I can't get the loan!!!

Thanks in advance

kingstreet

Ask Barclays about its maternity leave policy.

Porting the current rate to the first part of your new mortgage is a good idea, so they have to be your first call.

The_J

Woolwich can be a bit funny if you aren't returning from maternity leave within a couple of months so you might struggle. Only way to find out is to ask.

If they OK it then you should be fine based on all the other figures.

becominganobsessivesaver

I did call and ask (didn't give them my details). At first they said no chance, then when I asked for reasons why/how it worked they said I would be ok if I applied while on full pay, as it was based on income at the time of applying. To be honest I'm not sure she had a clue!!!

Simon_gloster

They will take the lowest wage you are eithed

A) on now or
will be within the next 2 months.

They will say their offer is subject to no changes in your circumstances....in reality your not eligable to port without underwriting, but what you tell them is up to you.

The way barclays will view it is you say you will return to work in October...and you may.....also you may not, they have to look aslt worse case.

If your partners work went t*ts up and you fell into arrears with no income and a mortgage to pay. Extreme I know, but I see it every day.

becominganobsessivesaver

Simon_gloster wrote: »

They will take the lowest wage you are eithed

A) on now or
will be within the next 2 months.

They will say their offer is subject to no changes in your circumstances....in reality your not eligable to port without underwriting, but what you tell them is up to you.

The way barclays will view it is you say you will return to work in October...and you may.....also you may not, they have to look aslt worse case.

If your partners work went t*ts up and you fell into arrears with no income and a mortgage to pay. Extreme I know, but I see it every day.

The thing is we are prepared for my husbands income to be zero - that is why we have a chunk (£20k) of savings which won't be used towards a deposit (we're currently saving £1,500 to £2k per month in order to deal with this). I don't want to lie, but I can get confirmation from work that I will be returning on a full time basis (as my husband's work is never certain). The thing which is more annoying is that someone could get a mortgage and then give up work, surely there is less risk if someone with a good credit history and salary gives a guarantee of their return to work.

Anyway - does anyone have any idea of any lenders who may be a bit more flexible to the circumstances. I definitely don't want to be committing mortgage fraud! If I didn't get an AIP from Woolwich, would this impact other credit searches with other providers? I currently bank with First Direct if that makes a difference.

The_J

No problem with getting a mortgage elsewhere.

becominganobsessivesaver

Just to update in case anyone else is in a similar situation. I have spoken with the Post Office and they would lend based on my normal income, provided I can demonstrate that I have sufficient savings to cover the low paid months, and have evidence of a return to work date and hours provided by my employer.

Just need to see what the developer comes back with now (and if necessary give it another year or so!)