stressed re: maternity and mortgage

missma

Hi all

We have had a complete saga selling our home, journey of 2 years due to time wasters and people pulling out last minute. Fifth time agreed!!!! Anyway we are sale agreed hopefully completing in next couple weeks.

We are hoping to buy a new build we have a deposit on, though think builders getting Fed up as we can not sign building contract until ours complete; so they can not do inside of house.

We had a three year fixed agreed with Nationwide rate was 2.94%, runs out in July and they can not extend more than 2 weeks. As house won't be ready until early sept, if we sign soon; we now have to reapply for mortgage. I am on maternity, how much will this complicate things????

We earn around 28k each full time Probably slightly more with extras, though I may reduce hours to 32 on return. Also have to factor some childcare. House we hoping to buy is £201000 with 20 % deposit. Hoping to fix.

Mortgage advisor has discussed some companies being more difficult around maternity.

Any advice, be welcome.
Thanks

Paully232000

I seem to remember when we got our mortgage, when partner was on mat leave we had to give information as to;
when partner would go back to work, and on what salary/hours,
what salary would be paid during mat leave
what our childcare arrangements would be on return to work.

They based our mortgage on this.

Also, our broker said that if anything materially changes that could affect our finances we should tell her, and this could change the amounts the morttage co would lend.
I would imagine (although someone more knowledgeable may come along and disagree), that you have some significant material changes,
less wages on mat leave i assume
less wages on return to work
less disposable income, ie childcare, on return to work.

kingstreet

The broker needs to establish lender policy and how to present the case, performing several affordability calculations to ensure the lender will still lend the amount required, regardless of the letter/reference from the employer.

missma

Thanks, we have savings set aside to cover payments. So a company would see this from bank statements. At this stage I do not know my plans exactly suppose some of that will be dependant on childcare availability.