New mortgage when pregnant

Mrsb85

Does anyone have any experience of getting a mortgage under the new guidelines when pregnant? It would be a joint mortgage with My husband who would be the primary earner.

Having done the sums we are confident we can afford the mortgage through mat leave and would continue to be able to even if interest rates increased. We have also calculated the costs of childcare after I return to work.

I've heard stories about people being turned down as soon as pregnancy is mentioned though... Is this true?

Any advice appreciated

ACG

Yes. But that does not mean you will be.
If they pass affordability with no kids but fail with 1 kid - then they are going to be declined.

Run the figures through the calculator with 1 kid and see if it still passes. If it does then you should be fine, if it doesnt find a new lender.

Alternatively speak to a broker for them to do the leg work.

Dont forget if you will be entitled to tax credits and the lender accepts them to include them on your income.

Mrsb85

So they will at least discuss it with us? We're sure we'll be able to show with our budget and projected income / expenses that we'll be able to afford it. Just worried they would reject us as soon as tell them I'm pregnant. We'd rather not lie about it.

amnblog

We have a similar query earlier this week.

If you are in the first trimester there is a long way to go and your mortgage is likely to be done and dusted whilst you are still a 'couple with no dependents'.

You just need to make sure you are confident you can pay when you do become a 'family'.

ACG

Some lenders also do not ask whether you expect any financial changes - so you would not be lying. You would just be answering the questions they ask :-)

mouthscradle

Sorry to jump on someone elses thread but this also applies to me at the moment. How did you get on, Mrsb85?

I'm currently five and a half months pregnant. We'll be going for a 95% LTV via the Help to Buy Mortgage Guarantee route. We've pretty much got the 5% deposit now. By the time we have saved a few more thousand to cover the fees and a bit of a contingency, it will be my due month.

Out of interest, at what point in the application/buying process would we be expected to give a final answer on the "do you have any dependants?" question? If we start the application in a month or two, the answer will be no. But by any completion date, almost certainly yes! We've calculated that we can still afford the mortgage through my maternity leave (I'm lucky and get full pay for most of it) and once paying childcare, including if rates should rise to 7% (although we would potentially go for a 5 yr fixed rate lower than this). But I can't help but be anxious that a pregnancy or a new baby will make lenders get cold feet seeing as we're 95% LTV and using the HTB scheme.