mortgage, maternity and self employment.

alm721

Hi there, can anyone help. Our current deal has come to an end with Nationwide and we can switch to another of their products no probs but we are looking to move and have just found a house that we really like. Nationwide know we are trying to sell and have said we can port the mortgage so no probs there either, but it now gets a bit tricky. We would like to bortrow more money which I believe would force us to do a proper mortage application (ie credit checks and stuff). This would not normally be an issue however, I am currently on maternity leave and so my wages are crap (about £112 per week I think). Hubby has worked as a non profit sharing salaried partner in his fathers firm for the last 20 years. Dad has no retired and hubby has gone as sole trader since Feb this year. So we have 2 problems in that my wage is currently poor and Hubby does not have 3 years accounts trading on his own. Is there any way around this?

Would Nationwide accept my last P60 as evidence of normal salary (around 30K) or would if have to be the last couple of wage slips showing £112 per week? Can we not declare hubby as having gone on his own and just use the last few years accounts for which he was a partner? or would this either not work or be illegal?

I know ideally we should wait until Im back at work or have more accounts etc but that is really not an option so if there is anyone who could offer any advice I'd be very grateful

Thanks.

PS current mortgage 83K house value approx 270K would like to borrow around £150k for a 450K property.

wv6jd

Hello there,

The deposit you will be putting down on your new house will allow you to be in a better bargaining position.

Unfortunately, Nationwide will not only want your P60 but also your last pay slip with it to prove your income. If you are not due to be on this income for a long time they may be able to take this into account.

For your husbands situation, Nationwide will require minimum two years accounts. If you say that your husband is still in partnership, they are most likely not going to question it. Although illegal is a strong word, it is still giving incorrect income and not looked upon very well.

If you have not yet applied for your new deal with Nationwide, it may e worthwhile looking into a self-certification mortgage. Although you may end up paying a slightly higher rate for the privilege on not having to provide confirmation of your income.

All the best.

Trancebabe_2

Hi there, I haven't read all the replies to this but I have just been through a similar situation myself when arranging a new mortgage whilst on maternity leave. The Halifax were happy to accept a letter from my employer stating my date of return and what my annual salary would be as proof of income going forward. At the time of application, I only had one month left on maternity leave. It may depend on how long you'll be on reduced income but it's worth asking them if that's an option. Good luck with it :0)