remortgage whilst on maternity leave

moneyshoe

Hi Folks, I've having a bit of a panic.

We have a £200,00 fixed rate mortage with Nationwide - think our rate is about 2.9% and the 5 yr fix ends in October next year. I am the main earner and our current mortgage, although joint, was based solely on my salary. I am also pregnant - due at the end of May. We have been saving for the pregnancy and will be able to survive comfortably while I have a year of mat leave. My husband is usually a stay at home dad so his income is very variable but probably won't be much - even if he goes full time while I'm off work it will be maybe £12-14K

Our plan had been to let our mortgage go onto the standard variable rate for six months and remortgage once I was back at work. However I'm now worrying about rising interest rates. I will get 3 months of full pay so will be receiving full pay until the end of August - could we lock in a deal at this point before my earnings drop? Or will lenders be willing to look at our savings plus my contract (I'm an NHS consultant) and not be concerned about the temporary dip in our income?

Thanks for any advice.

Mark_1979

We have just remortgaged (due to complete next week) with my wife in the middle of her maternity leave. The lender, Barclays, needed a letter from her work stating her salary and when she was returning from maternity leave.

YHM

Your rate expires in October 2018? If so, its to early to look at securing a rate to roll onto. You could remortgage, but this would trigger the Early Repayment Charge.

In terms of the Maternity Leave point, this shouldn't be an issue. If you have a return to work date and savings to cover the drop in income, then I would think this wouldn't be an issue, lender dependant.

Tom99

I would also compare remortaging now whilst rates are low and paying the 1 year early redemtion charge.

dimbo61

You need to look at the terms of your current deal ?
Does the ERC ( early repayment charge ) go down each year from say 5% in the first year to 1% in year 5 ?
You are on a good deal right now
If you know your LTV (loan to Value) and have a look on the Nationwide website you might find deals which are cheaper.
However rates have not changed in a very long time and with many borrowers used to low rates I cannot see the Bank of England base rate hitting 1% before your current deal ends.
You can sign up to a new deal with Nationwide 3 months before your old deal ends.
So enjoy your pregnancy and dont call for a Paramedic when due just get down to the Maternity unit ASAP :rotfl:

dimbo61

https://www.nationwide.co.uk/products/mortgages/existing-customer-switching/what-we-can-offer

dimbo61

" Our plan had been to let our mortgage go onto the standard variable rate for six months and remortgage once I was back at work"

Now as an existing Nationwide customer you can find a new deal without any checks on Income as long as you are not changing anything!
IE same term and not borrowing any more money.
So at the end of July you can see what Nationwide has to offer existing customers and apply online without asking for ADVICE

If you wanted to pay off your existing mortgage and take a new mortgage with Nationwide or any other lender you would have to go through a full application