Porting mortgage while on maternity leave

bigbaby

I’m hoping someone can help or has been through this before. 

I found a new house and agreed to buy but I was just waiting for my current home to sell which it just has. So now we can proceed. 

I want to port my mortgage from the current house to the new house- keeping the loan amount the same, but the new house is much bigger and more expense. So the LTV will be less. I have savings set aside to cover the difference in price. 

However I just started maternity leave at the end of January. Will this affect porting the mortgage over ? 

It’s on my last pay slip so I can’t hide it. 

Any ideas on what to do? I really need to move to the bigger house for space for the new baby. 

Any thoughts or help appreciated! Bit nervous that the bank could turn around and say no to porting the mortgage. 

(I have saved up over years worth of mortgage payments to cover time whilst I’m on Mat leave so I can definitely pay. It’s more that they will look at affordability and my income on May leave is next to nothing! I’m worried they will say I can’t afford mortgage and say no to porting it. ! 

amnblog

This is comes up on this Forum regularly.

The porting facility applies to the product, not the mortgage.

This means you can take the rate with you to the new property and only potentially pay early redemption charges on the product if the new loan is lower than the original (in which case you pay the charges on the difference).

You still have to apply for a new mortgage on the new property and clear the old mortgage as you take the new mortgage. If your Lender will not lend on the new mortgage, you cannot port the product.

If you are on maternity leave the Lender will typically:

Want to confirm when you are due back to work, and on what terms (hours etc) [via your employer]
Want to understand childcare costs when you return to work
Sometime will want to evidence you have funds saved to bridge any gaps in income/outgoings whilst you are on maternity leave (which you clearly have covered).

If your income/outgoings fit for affordability on your intended return to work, the Lender is happy.

It sounds like you are OK.

I hope that all makes sense?

bigbaby

Thank you so much for your reply. 

I will look for other posts to see if there’s any examples. (I’m new to this platform)
my partner has lots of savings too to help over the next year onwards. 
 the new house is in my name only as the previous house was in my name only too. 

I think I will go through a mortgage broker to see if they know any tips with this situation. 

amnblog

Yes, a Broker is a good idea. 

silvercar

bigbaby said:

Thank you so much for your reply. 

I will look for other posts to see if there’s any examples. (I’m new to this platform)
my partner has lots of savings too to help over the next year onwards. 
 the new house is in my name only as the previous house was in my name only too. 

I think I will go through a mortgage broker to see if they know any tips with this situation. 

If the home is in your name only, that suggests that the mortgage is based on your income only. Would adding your partner to the purchase mean that you would meet the salary multiples easily?

Hoenir

bigbaby said:

 the new house is in my name only as the previous house was in my name only too. 

Why not add your partner?  As matters stand you'll be assessed as being a single applicant with a dependent.