Re Mortgage

Hello all,

Some advise if possible. We are nearly due to review our mortgage which is currently with Abbey.

Our finances are also about to change with the addition of our 1st child!!

Currently we earn more then enough to cover our mortgage of 160k, this naturally will change albeit only for a short period as the wife is obviously going to take a period of maternity leave prior to returning to work

We are due to re mortgage around October, 3 months after wife goes on maternity leave. My question is as follows

1. What / where are our best options currently
2. What sort of questions are likely to be asked re our finances?
3. Our LTV is below 75%

Sorry bout so many questions, any advise is appreciated


Best Regards

Merc

Replies

  • Fairdo_2Fairdo_2 Forumite
    442 Posts
    This might be a bit of a tester. (Which could be why there have been 20 viewers and no reply yet!)

    I suppose it depends on what your incomes are going to be whilst on Maternity leave and what they will be after.

    If you could specify them for each, that might help. Also whether there is any other borrowing or any credit card balance in the background.

    If you would struggle to meet any new lenders criteria during the Maternity leave, an option would be to get a new deal with Abbey.

    However, I would say that there should be options for you elsewhere.

    As you are stating that the loan is below 75% LTV, then you sound savvy enough to be aware that you can "fast track" your application with several lenders. That would be all well and good, as you can state the income you are both on now and apply for it now with a view to completing in October.

    You would not be lying and I know several lenders would tell me that they do not need to know about the Maternity leave.

    The only concern I have with that, (and its a biggy) is that before completion, you are obliged to let the Lender know of any change in circumstances, which this obviously is.

    I would say that honesty is the best policy and you should seek a broker who will put the whole case favourably and truthfully to the Lenders and that the ones that show a common sense approach (that you are borrowing on a debt for bebt basis, to ensure that your outgoings are kept as low as possible) and show responsible lending without shutting up shop, should be deserving of your business.

    I can see the attraction of the little white lie, as Lenders have often encouraged me to miss out certain facts in the past, BUT this leaves YOU and the ADVISER open to committing fraud and the Lender would not be in the dock for that.

    Another consideration to take very carefully, would be whether to put the payments on an Interest Only basis for a short period of time, but I'd use that option as a last resort.

    Another possibility could be to take a repayment holiday with Abbey if they allow it, again as a very last resort, because you don't get it for free, you WOULD pay for it later.

    I reckon there would be Lenders out there that would take a view on it.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • vale_2vale_2 Forumite
    56 Posts
    sound advice from fairdo.
    how about sticking with abbey (see what they will offer) for now and review in 12 months- if you do this make sure the rate has no tie ins...they have some available.
    ;)
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