My sister is 7mths pregnant and buying her first house. Her SO left her yesterday. RO

*Kat*

mountainofdebt wrote: »

But now she'll have the mortgage AND the bills to cover not to mention childcare etc

The only thing I can think of is maintenance for the child.

Has she exchanged contracts?

Yes. He lives at home with his parents but earns around £17k a year.

We worked out her costs per month at £620 a month, for all bills. Her incoming is around £1000 per month. She called the tax credits office and they are going to help her. Surely there are other single parents out there with a mortgage?

northerntwo1

*Kat* wrote: »

Yes. He lives at home with his parents but earns around £17k a year.

We worked out her costs per month at £620 a month, for all bills. Her incoming is around £1000 per month. She called the tax credits office and they are going to help her. Surely there are other single parents out there with a mortgage?

Childcare will eat into that even if getting tax credits. What are her plans? What is her maternity pay? £620 is very low, £300 mortgage, plus council tax, plus water, plus buildings insurance plus electric/gas. You'd be lucky if it's under £800.

*Kat*

northerntwo1 wrote: »

Childcare will eat into that even if getting tax credits. What are her plans? What is her maternity pay? £620 is very low, £300 mortgage, plus council tax, plus water, plus buildings insurance plus electric/gas. You'd be lucky if it's under £800.

£300, council tax = £117 - including water, buildings/contents = £30, gas/electricity = £100, life+IP = £40. I've forgotten something...

Childcare is the biggest concern for me, I'm not sure how long she gets maternity though

flea72

Tv licence, BB/phone, food, travel, nappies, childcare?

Statutory maternity pay is about £500/m, so half her normal income

NYM

When does your sister exchange contracts on the house ?

The amount you can borrow is based on affordability assessment taking into account personal expenses as well as income.

The Mortgage company will undoubtedly have a clause in their offer that stipulates if circumstances change, they must be notified. Changes that might affect their decision to lend include losing your job or having a baby.

flea72

NYM wrote: »

When does your sister exchange contracts on the house ?

The amount you can borrow is based on affordability assessment taking into account personal expenses as well as income.

The Mortgage company will undoubtedly have a clause in their offer that stipulates if circumstances change, they must be notified. Changes that might affect their decision to lend include losing your job or having a baby.

I would have thought as the OPs sister is 7m, she would be visibly pregnant and id be surprised if the fact she was pregnant didnt come up in conversation during the mortgage application process.

As her SO was not part of the mortgage then his income wouldnt have been included in affordability, but he would have been classed as a dependant, so the OPs sister, will now actually be viewed as having more disposable income as she isnt supporting another adult. But in most likliehood, i doubt the OPs sister even declared another adult was going to be living with her, so the whole application would have been based on the situation she is now in, ie single and pregnant

It is possible to get a mortgage whilst pregnant and if the OPs sister only earns £1k a month, then her mortgage cant be that big anyway, so in all probability she could still afford the repayments, using her SMP, CB and TC

NYM

Lenders are expected to ask borrowers about, and to take account of, any ‘foreseeable changes’ (such as reduced income or increased expenditure) that the borrower knows may affect their ability to pay the mortgage.

Providing the OP informed her lender that she was pregnant (when she applied, which could have been months ago, her pregnancy may not have been apparent ) then in theory, her 'income', be it from benefits, would have been taken into account.

*Kat*

She only applied last month, she is using the LIFT scheme and that is why her repayments are a lot cheaper. She doesn't want TV or phone/BB. She has her mobile phone contract - £10pcm. I'm not including the food etc, because we're just trying to work out her disposable income after, and what benefits she can get, if any.

I wonder what her SO is required to pay, but I guess she'll find that out soon.

RAS

Assuming her significant other is the parent of the baby I believe CMS is 12% of gross salary (less any pension contributions).