Pregnancy between application and exchange

elvenlomadia

Hi all

Hope someone can help as I'm getting rather stressed! We applied for a mortgage back in February, thought sale would go through in April as we're in rented and the seller of our house is moving into a new build that's already built but is proving not to be the case.

When we applied, I was asked if my circumstances may be changing in the next 5 years (length of mortgage fix). I said that having children in the next 5 years would be likely, however it is now looking possible that I am now pregnant and we have not yet exchanged.

Just wondered if anyone could tell me what my obligations are with the lender in this case, would they have included potential children in our affordability based on the information I gave? At what stage would they need to be updated (if any)?

kingstreet

Any change in circumstances prior to completion should be reported to the lender.

Unless you actually discussed the impact on your income and any future childcare cost, it hasn't been taken into account yet.

Red-Squirrel_2

If its only 'looking possible that you might be' pregnant, that's very very far from a definite change in your circumstances.

How soon till you exchange?

Paully232000

When are you likely to move in now, anytime soon? When is the baby due?

I would be asking myself can I realistically afford the new house now as things could substantially alter financially, especially if you were close to your limit on mortgage affordability already. It may not of course.

I would imagine that, in an ideal world, you should tell the mortgage company. When my OH was pregnant on our first mortgage application they asked us when OH would be going on mat leave and for how long, what pay would be during this time, what pay would be when back at work and what costs would be involved for childcare.

You might find it makes no difference, although it may make a substantial difference, depending on a) if you tell mortgage company, and b) what your answers are.

elvenlomadia

Nothing confirmed by a dr pregnancy-wise, so yes would be super early days, would be interested in what point people would class a pregnancy as a change in circumstance, I imagine that's hugely open to interpretation.

Exchange is looking imminent, but it has for the last month! There are queries from our seller's solicitors to the new build solicitors and no one seems to have a clue what they are or why they are taking so long.

We are very far away from our max borrowing, our affordability was c200k and we are taking out a mortgage for 135k.

Paully232000

elvenlomadia wrote: »

Nothing confirmed by a dr pregnancy-wise, so yes would be super early days, would be interested in what point people would class a pregnancy as a change in circumstance, I imagine that's hugely open to interpretation.

Exchange is looking imminent, but it has for the last month! There are queries from our seller's solicitors to the new build solicitors and no one seems to have a clue what they are or why they are taking so long.

We are very far away from our max borrowing, our affordability was c200k and we are taking out a mortgage for 135k.

I guess so yes.

We couldn't hide the fact from our broker, as we went for the appointment in about March and baby due in June:)

benjus

Personally, I wouldn't think you would need to disclose anything until a viable pregnancy has been confirmed at the 12 week scan. But I'm not an expert.

duchy

A change of circumstance is when you have a baby- anything before that isn't a certainty (sorry I know that sounds horrible) so there is no need to say anything -at least I wouldn't. It is like not telling work you aren't going back to work after mat leave-most companies know it's a possibility but until the baby is born safely they won't and can't ask you to decide or even give an indication.


Obviously you'd need to be sure in your own mind it was still affordable -and not be on maternity leave before completion but you are months away at this point

Red-Squirrel_2

benjus wrote: »

Personally, I wouldn't think you would need to disclose anything until a viable pregnancy has been confirmed at the 12 week scan. But I'm not an expert.

I think the 12 week scan is generally the time that most people consider the pregnancy to be more of a 'sure thing'. That tends to be the point when they tell family/friends and start planning ahead for a baby. Before 12 weeks, most people know better than to assume a pregnancy will definitely mean a baby.

Whether mortgage lenders agree with that though...

I know that a pregnancy doesn't have to be disclosed to an employer until about the 25th week (roughly).

elvenlomadia

Thanks all, really appreciate your thoughts. Puts my mind at ease on the mortgage front for the moment, will go back to wondering if this purchase will actually get anywhere and nagging anyone who will listen!

silvercar

I wouldn't have thought any change of circumstances that isn't financial would need to be reported. So until you have given your employer official notification that you will be taking maternity leave, there is nothing to report.