First home, maternity leave and possible part time job

Ameo

I’m due to go on maternity leave soon, hoping to go back to work next year on a part time basis but have not discussed with employer yet.

We have come into the very fortunate of being given some money for a deposit. There is a local development we are particularly interested in.

Problem is I don’t think we would get a mortgage to cover the cost on my part time salary, but would on my current full time salary. The repayments are the same as our current rent PCM which we have paid without default for the last 9 years (this calculated on an online calculator). I have heard that some lenders will agree a mortgage with a letter from my employer confirming employment, salary etc but I am reluctant at this point to discuss part time return request with my employer. I could continue to work full time on my return but I had hoped not to. No guarantee I’d even be granted part time hours.

If you’ve got through the waffle thank you. Options in my head seem to be:
1) Leave deposit money in an ISA for now and look at moving in a few years time.
2) Apply for a mortgage now asking employer for a letter which assumes I’ll return on my current salary and hours despite knowing I want to request flexible working.
3) Discuss part time return now and do mortgage based on that - likely have to forget the new development (unless rent payments prove we have sustained this outgoing thus far?)
4) Any other wisdom?

Cakeguts

Would you be able to pay your current rent easily while working part time?

Ameo

Yes - in fact we survived on a lot less when we first took the house on!

HanPop

Do you have to tell lender you’re pregnant? They’re not allowed to ask....you can go via a broker and you don’t even have to go into a branch. Just a thought if you will still be able to make mortgage payments on your part time wage.

Ameo

I have no idea if we have to tell them, but surely it would go against the part where you’re supposed to declare if you foresee any changes to your circumstances?

The excitement of having a deposit is fading a little - seems we’re still a bit stuck!

gettingtheresometime

I know if you apply for a credit card you have to answer a question about whether or not you expect your income to change within the next 12 months; I don't know if they ask the same question for mortgages though.

Also what are you planning to do for childcare? If family/friends are doing it for free then you won't have the extra costs added to a part time salary but if paying nursery fees you may have to declare foreseeable extra costs.

Kitten868

As said you crack on as if you weren't pregnant. They don't need to know.

Yes you are asked if your circumstances will change but you don't know of any reason why you wouldn't be able to continue paying your mortgage so that's covered.

skint_chick

As you are legally entitled to return to work on the same terms and conditions after normal maternity leave then mortgage lenders are not supposed to discriminate against you. Most accept a letter confirming you are entitled to return on to your position, although some don't even request that, just your payslips. Also you don't know how you will feel about returning to work until you are in that situation, so you can't really sort out a part-time return to work until you know how your baby is settling, what days you have childcare for etc. If your employer pays enhanced maternity pay you'll want to check if their are terms and conditions about returning to work for a certain length of time in case you end up needing to repay money if you do decide to reduce your hours or change jobs.

If you're sure you can manage the repayments on a part-time income or with childcare payments and the mortgage payments are similar to your rent then it seems reasonable to buy. Make sure you factor in an emergency fund for unexpected repairs - even with new builds - and think carefully about how much you'll need for solicitors, stamp duty, furniture, moving costs (because moving stuff is hard work even when you're not pregnant!). You should take time to consider income protection for your partner if you would be unable to pay the mortgage and bills on your income alone, and life insurance for when your child arrives so if the worst happens to either one of you the other isn't left struggling. There's a budget planner on here that you can use to do a post baby budget with the extra baby expenses added in to see if your budget will still work just to be on the safe side.

Make sure when you're looking at houses you consider things like how easy it is to get the pram in the front door and is there storage for it, separation of adult and child space so you can still have your space, and how easy it is to get to the car and get kids strapped in quickly if it's pouring with rain - ideally a hard surface. My friend bought a house with a skinny drive and was constantly stepping on the grass to get the car seat in and out, and to walk round the car to get onto the street, in winter it was really muddy.