Mortgage rejected due to pregnancy...ground for appeal?

Camie85

Hi all,

I'm a newbie here so please go easy on me.

My mortgage advisor has advised me that my mortgage application has been rejected...not on ground of affordability...but because they do not believe I will go back to work after maternity leave and have asked me to reapply once I'm back at work following maternity leave.

Summary of my situation
*35 years old

*Worked for NHS for 12 years

*Salary £55k (plus a mortgage free apartment that is rented for £750pcm)

*30 weeks pregnant (single/no partner)
*Planned 6 months maternity leave (NHS full pay+SMP)
* When I return to work I will be working from home as I'm not in a patient facing role / my mother retired teacher will be providing child care for the first year.
*£5k in savings (saved as a buffer, not for the house buying process)
*Mortgage required £198,000
* Deposit 10percent

I feel that I'm being penalised for being a single mother going on maternity leave in this day and age. We have provided a letter from my work with all information required to prove date that I will be going back to work.

Is there ground for appeal and how do I go about it, losing trust with my mortgage broker.

Brie

I understand completely but as you know doubt know there's lot's of women (& some men) that don't return to work after the birth of a child even though they state they fully intend to. 

To a bank I would think this is little different than me saying "yes I have credit cards with a massive amount of available credit but I swear I won't use it once you have given me a mortgage." 

I would think that the only way you will get a mortgage is if there is someone else's name on it with you - like your mom perhaps assuming she would tick the affordability boxes.

kingstreet

Which lender? Most would not take this stance.

K_S

@camie85 As kingstreet said, this is definitely not normal at all and (at first glance) your numbers look fine even if you assumed a cost for child care. I can't think of a case of mine that's been rejected for this reason by a mainstream lender.

Are there any other complications you can think of in the background that limit your lender choices? Is this a specialist/small lender?

And what is the broker suggesting as a next step with regard to alternate lenders?

michael1234

A quick search seems to suggest they might have acted unlawfully:

https://www.citizensadvice.org.uk/law-and-courts/discrimination/what-are-the-different-types-of-discrimination/pregnancy-and-maternity-discrimination/

What’s meant by pregnancy and maternity discrimination?

The law which says you mustn’t be discriminated against is called the Equality Act 2010. Discrimination which is against the Equality Act is unlawful. This means you can take action in the civil courts.

Pregnancy and maternity discrimination is when you’re treated unfairly because you’re pregnant, breastfeeding or because you’ve recently given birth. You must suffer a disadvantage as a result of the unfair treatment. The law says you’ve been treated unfavourably.

Thrugelmir

Camie85 said:

 We have provided a letter from my work with all information required to prove date that I will be going back to work.

It's the employee that determines when, whether and in what capacity they will return to work. Employer abides and accomodates the employees wishes. A letter proves nothing as such. People are known to change their minds. 

Camie85

Brie said:

I understand completely but as you know doubt know there's lot's of women (& some men) that don't return to work after the birth of a child even though they state they fully intend to. 

To a bank I would think this is little different than me saying "yes I have credit cards with a massive amount of available credit but I swear I won't use it once you have given me a mortgage." 

I would think that the only way you will get a mortgage is if there is someone else's name on it with you - like your mom perhaps assuming she would tick the affordability boxes.

Thanks Brie,

If that is the case it will be a bitter pill to swallow, I find it difficult that they would think I would leave a well paying job to do what exactly?? Claim benefits?? If anything the pressure is greater to return to work as I don't have anyone else to relie on (my mother has the means to support me financially if I asked but I never would ... I prefer to ask her to help with childcare instead LOL)

Camie85

kingstreet said:

Which lender? Most would not take this stance.

Santander

Camie85

K_S said:

@camie85 As kingstreet said, this is definitely not normal at all and (at first glance) your numbers look fine even if you assumed a cost for child care. I can't think of a case of mine that's been rejected for this reason by a mainstream lender.

Are there any other complications you can think of in the background that limit your lender choices? Is this a specialist/small lender?

And what is the broker suggesting as a next step with regard to alternate lenders?

That why I'm so confused as they actually said they have no concerns in terms of affordability just that they can't be sure o will return to work following maternity leave....
I can't think of anything else in the background and neither can the mortgage advisor.

Mortgage advisor has gone back to speak to the 'business case manager' to appeal and has not told me anything else? 

Can we approach other lenders? Will they take the same stance as Santander given their decision?

kingstreet

Santander criteria;-

Income during parental leave (maternity and paternity)

Latest payslip;

and Last payslip prior to parental leave showing the full salary;

and details of lowest income expected during parental leave and if this is insufficient, alternative source of funds to support payments and living costs may be required (e.g. savings).

Where an applicant intends to return to work on the same terms as before the start of parental leave, we will need confirmation of this in the ‘General Notes’ section on Introducer Internet.

Where an applicant (or either applicant if joint application) will be changing their working pattern following parental leave, we will need a letter from the applicant’s employer confirming their return to work conditions.

Please make sure that you have included any anticipated childcare costs in non-regular expenditure. Where there will be no childcare costs please provide an explanation including details of alternative arrangements in the ‘General Notes’ section on Introducer Internet.

K_S

Camie85 said:

K_S said:

@camie85 As kingstreet said, this is definitely not normal at all and (at first glance) your numbers look fine even if you assumed a cost for child care. I can't think of a case of mine that's been rejected for this reason by a mainstream lender.

Are there any other complications you can think of in the background that limit your lender choices? Is this a specialist/small lender?

And what is the broker suggesting as a next step with regard to alternate lenders?

That why I'm so confused as they actually said they have no concerns in terms of affordability just that they can't be sure o will return to work following maternity leave....
I can't think of anything else in the background and neither can the mortgage advisor.

Mortgage advisor has gone back to speak to the 'business case manager' to appeal and has not told me anything else? 

Can we approach other lenders? Will they take the same stance as Santander given their decision?

@camie85 Yes you can approach other lenders but whether they will take the same stance or not will depend on what exactly Santander is worried about. And tbh it's your mortgage adviser (I'm assuming you mean a whole of market broker rather than the Santander mortgage advisor) who should be best placed to answer that question.

I haven't used Santander for a resi purchase app recently but during covid, based on my experience and what I saw on broker forums, their underwriters were very finicky and would often exceed criteria requirements. Not saying that is necessarily the case here, just thinking of something that it could be, as it is very unusual for a lender to say this.