Getting a mortgage when pregnant

RACH83_2

We have been looking for a while and we have seen mortgage advisors but haven't found anything we like. We really want to start trying for a family but we were wondering what kind of effect this will have on how much we can borrow or if we could get a mortgage at all with the new rules. Could anyone give me an idea of the effect?

Thanks in advance.

suse*

I think it comes under the new mmr rules as with no kids you have more disposable income so can get a bigger mortgage. As soon as you have kids you have childcare costs etc which reduce your income, and in turn what the mortgage companies thing you can afford in repayments if the interest rates rise.

suse*

I think there was something on bbc radio 4 moneybox a couple of months ago actually where they wouldn't count the womans income as well, as they couldn't be sure she'd return to work. If you look you can probably find the podcast.

RACH83_2

Thanks, I thought the amount we could borrow would reduce but the question is by how much?

Ive also heard that if you are pregnant or on maternity leave they won't lend at all to you, is this correct?

Thanks.

Thrugelmir

My opinion. You need to be realistic with your budgeting. Wanting it all is a recipe for disaster. Affordability rules are not only to stop lenders advancing too much but to protect people from themselves. With interest rates low everything looks so manageable. As interest rates rise the picture will change.

Decide your priority. Property or family.

kiddakidda

Totally agree with Thrug

In my opinion, get property first, then go at it like Rabbits when you have the keys are you are in.

Childcare fees destroy affordability because they are like a mortgage in themselves

And guess what, even if you try and reason with lenders about the fact that you'll only have the costs for a couple of years they will not take that into account as you might have more kids :rotfl:

Thrugelmir wrote: »

My opinion. You need to be realistic with your budgeting. Wanting it all is a recipe for disaster. Affordability rules are not only to stop lenders advancing too much but to protect people from themselves. With interest rates low everything looks so manageable. As interest rates rise the picture will change.

Decide your priority. Property or family.

antispam246

Just be honest. Write a full budget showing expenses and effect on income if you were to have a child. We did this whilst OH was pregnant through mmr, just by showing we could coukd still reasonably afford the mortgage even with potential future interest rate hikes worked in our favour.

OH will be returning to work eventually but we still worked everything out based on partial maternity pay, statutory pay and my pay, i corporating all this into a standard budget and running it against hypothetical rate changes. If nothing else you'll be being honest with yourself and see where you really stand.

dimbo61

If you do apply for a mortgage look at long term fixed rate deals and offset fixed.
5 years !
If you do have a little one then he/she will be 3/4 when mortgage deal finishes and at nursery or even school.
Good timing !!!!
Much depends if wife is main breadwinner ? Wants to return to work full/part time, family nearby to help with child care, etc
I love offset mortgages and think they are a good way to save/overpay mortgage.
If you buy a property could you put all of your wife,s income into offset account every month until she stops work to have kid/kids ?

kingstreet

Use different lenders' affordability calculators on a "before and after" basis;-

No dependents

One dependent

One dependent plus childcare.

Then you'll see the exact difference for that particular lender.