Mortgage Term Ending - Trying for a baby complications?

IvyFlood

I wonder if I could have some advice;

So after waiting an extra 18 months to get married due to the pandemic, me and my husband are finally trying for a baby.

However next September, we come to the end of our fixed term deal on our mortgage (Nationwide).

What happens when you reach the end of your fixed term? I know you can re-mortgage/look elsewhere but can it just ‘renew’? I’ve tried to read up on it but can’t really find a specific answer!

I’m concerned that as the breadwinner, my income will drop considerably and I feel like we won’t be able to re-mortgage. Some might advise delaying the baby but I am 35 and so feel like time isn’t on my side! I only plan to take six months and we do have savings. My parents can also help with childcare.

I know it’s illegal for lenders to discriminate but can’t help but feel they do anyway!

I should also add, our current monthly repayment is quite high – a lot higher than its needs to be. We wanted it this way as it fit with our budget and we wanted to pay off as much as we could/shorter term to start with, whether that counts for anything!

Thanks!

penners324

You can do a product transfer with your current provider. They contact you about 3 months in advance with your options, you pick one of those

london21

Staying with the same lender for re-mortgage is straight forward especially if you are not releasing equity. 

MXMike

Please don't worry or delay your plans as lenders are highly flexible and considerate to this to the extent that you are not disadvantaged if you are on parental leave.

Most lenders will want either verbal or written confirmation on your plans to return to work. If you are going back to the same job, on the same terms and income you may only need to provide up to 3 payslips prior to leave starting to demonstrate your income and they will assess this on good faith.

If you are returning on different income you will need a letter from your employer written to you confirming the date of return and more importantly your gross annual income upon return. Affordability will be based on your return to work income only.

Do not forget although lenders do not make it difficult for someone taking parental leave they always have to assess affordability so the only likely impact will be that childcare costs have to factored into making this the only thing that may make remortgaging difficult.

That said regardless of any change in personal circumstances your current lender is not allowed to disadvantage you so you will always be offer a product transfer option with the current lender and will not face any affordability assesment at all.