Loan whilst on maternity leave

leon103

My wife and I are looking at changing our car and she is looking for a loan in her name. She is currently on maternity leave until November. Up until this month her wages have been 100% but now just standard maternity pay. Would she have any issues because we was on maternity leave?

jonesMUFCforever

Yes - how would she repay the loan and continue to live with present costs?
Is there a reason the loan needs to be in her name and not a joint loan or one in your name?

leon103

Payment would be out of the joint account. Not sure why she wanted it in her name, just thought I would check. Haven't filled in a loan application fr a number of years, would she disclose she is on maternity leave on a form?

jonesMUFCforever

leon103 wrote: »

Payment would be out of the joint account. Not sure why she wanted it in her name, just thought I would check. Haven't filled in a loan application fr a number of years, would she disclose she is on maternity leave on a form?

Yes she would - anything else would be fraudelent would it not?
With a reduced salary - the bank would make a full affordability check and I don't see it coming back as a YES do you?

leon103

I don't know that's why I ask. I thought they would ask for salary which the last 3 months payslips show full pay.

jonesMUFCforever

...........But you know that this will not be the case in future - so please tell me how the repayments would be made on statutory sick pay?
The fact the repayments would come out of a joint account is irrelevent unless it was a joint application.

SnowTiger

leon103 wrote: »

I don't know that's why I ask. I thought they would ask for salary which the last 3 months payslips show full pay.

You'd probably get away with it, but it's deceitful to hide things like that from a lender.

Whichever way you look at it, you will have less disposable household income from now on.

poppasmurf_bewdley

leon103 wrote: »

My wife and I are looking at changing our car and she is looking for a loan in her name. She is currently on maternity leave until November. Up until this month her wages have been 100% but now just standard maternity pay. Would she have any issues because we was on maternity leave?

Why not just ask the loan provider? Or do you already think you know the answer?

leon103

WOW. You lot are friendly bunch aren't you


I know I have been away from the board for sometime but I didn't realise it has been overrun by rude idiots. I was only asking a simple question.


OK I guess I should have worded the question better. When applying for a loan online is there a function for declaring maternity pay?


It wasn't a question about affordability.


Never mind. I think I will find out the information elsewhere.

Money_maker

I think the consensus on this board is to steer those away from loans, particularly if there was a question over affordability. All adds up to good money sense.

leon103

I agree.


I guess most on here have !!!!ed up financially before and think loans are evil.


Getting this smallish loan now actually means I could make money. Bit of a long story to explain though.