Mortgage portal on maternity leave refused

Elsie14

just wondering if you have any advice for me.
We had bought a house for £161,000 and sold it for £200,000. We wanted to port our mortgage to a house which we bought for £184,000. All was going well until our mortgage company found out I was on maternity leave, to which they said unless I was going back to work in three months they would not port it, based on the fact that they could not be sure I would return to work. In order to get the house we have had to remortgage with another company, but the original company are charging us a £4100 ERC.
We were already paying the mortgage of £600 with no problems, we had a £40,000 profit, and our argument was whether they knew about my mat leave or not, whether we moved or not, it would have easily have been paid. I feel that I have been discriminated against as a woman, why would they assume I would not return to work.? I am still employed why not consider my wage before mat leave and my mat leave pay?

I have contacted the ombudsman and equality commission, is there anything else I could do? I really don't see why we have to pay that ERC.
Many thanks.

kingstreet

Many lenders take a more enlightened view, basing affordability on the last pre-leave payslip, provided the applicant supplies the return to work letter and confirmation of their return date.

You appear to have chosen a lender which does not take that view and as being able to port the rate from the old mortgage to a new one is based on you being able to meet the lender's criteria for a new one, your application and your port couldn't proceed.

If there was to be no increase in the amount you were borrowing, or if the mortgage amount was being reduced, you may be able to base your complaint on the lender not applying the FSA's October 2012 transitional arrangements which allow lenders to suspend affordability calculations in such circumstances. Many appear to not want to do this and it's becoming an issue which concerns the new regulator the FCA and many of us who work in the industry.

You may end up having to take this to the Financial Ombudsman Service (FOS) when the lender rejects your complaint and I would very much welcome your updates to this thread, if you go this route.

amnblog

Timing can often shoot borrowers in the foot when it conflicts with lending criteria.

I too would be interested in the result of your complaint.

Thrugelmir

Elsie14 wrote: »

I really don't see why we have to pay that ERC.
Many thanks.

As it's a contractual term. There's no right to be offered a mortgage. A lender will set it's own lending policy as it thinks fit.

jacobtheamish

It is in my view discrimination along with many lenders, yes would be good to see the outcome of a complaint of this nature. Who is your current lender?

Thrugelmir

jacobtheamish wrote: »

It is in my view discrimination along with many lenders,

No business has an obligation to sell a customer something if it doesn't wish to. There's no law in existance to my knowledge.

There's always another lender that might.

jacobtheamish

Thrugelmir wrote: »

No business has an obligation to sell a customer something if it doesn't wish to. There's no law in existance to my knowledge.

There's always another lender that might.

I would agree but treating someone differently purely because they are on maternity is in my view discrimination also the view of a certain large high street building society (I'm going to stop naming lenders) Providing the applicant is still in employment and a contract exists with a clear return date, I cannot see the risk. I do appreciate there are many new mothers who decide not to return once maternity leave ends but anyone can resign a job.

jacobtheamish

oh and TCF?

kingstreet

... and if the existing lender is already carrying the risk and by moving the mortgage amount will be lower, it makes no sense to prevent someone moving house.

Yorkie1

jacobtheamish wrote: »

oh and TCF?

Treating Customers Fairly

jacobtheamish

Yorkie1 wrote: »

Treating Customers Fairly

Correct, gold star for you my boy ;-)