Mortgage Rejected by Underwriter - Grounds to Appeal? - Maternity / Relocation

Savi_123 · 15 July 2018 at 7:55PM

Hi All,

I am active reader on these forums, however please bear in mind that this is my first post. I have created this post as our circumstances is slightly complex, and have not seen any previous posts.

My Partner and I are First Time Buyers, and we have recently applied for a mortgage through our Mortgage Broker with Coventry Building Society. We have placed an offer for a £142,500 property, and are asking for a £128,000 Mortgage with a 10% deposit. The Mortgage Broker advised that based on our salaries (£28,000 & £34,000), the amount we are asking for is very much affordable and well below what we can afford, and therefore, it should be a fairly straightforward application.

We are planning to move up North, and my Partner is pregnant, and will be on Maternity Leave in September 2018. I have successfully found a new job, and will be starting in due course. Our credit history is excellent, and we have no debts, apart from car finance (£250 per month), which is paid off each month, and will end in March 2019.

Our Mortgage Broker has advised us that the Underwriter rejected our application on the grounds that it is unlikely that my Partner would return to her current employer in London, as she will be a first time Mother. We have provided evidence from her Employer who has agreed for my Partner to work 3-long, consecutive days, and also have a letter from her Friend stating that my Partner can reside in their privately owned property on the basis that she needs to return to her current employer. Please note, that it is very unlikely that my Partner will be returning to her current employer, as she is a Senior Nurse, and therefore, has transferable skills, and will be able to find a job in our new area after her Maternity Leave, fairly quickly. Her decision to not apply for a job at present was due to the fact that she is 30-weeks pregnant, and therefore, unlikely to be accepted for a September 2019 start.

We feel that the decision to reject our application is discriminatory as the Underwriter is assuming that because my Partner will be a first-time Mother, she will not return to London and return to her current employer. They have been advised that we have family (who are retired) who will be able to support with child-care, and that my Partner, who is a Senior Nurse, has transferable skills, which will mean that she will be able to find employment in the new area, without much difficulty.

I wanted to know whether we have any chances to appeal the decision by the Underwriter on the basis of discrimination, and I would appreciate your thought/advice on the matter.

Many thanks,

haras_nosirrah · 15 July 2018 at 8:15PM

Quite often lenders will look at plausibility. They have decided that it is unlikely that she would return to her current job when moving so far away (and you have admitted they are right in that decision)

This is the problem when relocating a long way away. I am not sure how you can complain and claim discrimination assuming she will not return to work but then say that she won't return to work thus confirming their assumption

ACG · 15 July 2018 at 8:17PM

They are not declining your application because your partner will be a first time mother, they are declining the application because they do not think she will return to work at the place of employment you put on the application due to the commute...and they are correct.

How cheeky can you be.

Savi_123 · 15 July 2018 at 8:21PM

Hi Haras,

Thank you for responding. Just to clarify, my Partner will be able to commute to and from her current employer if she is not able to find job (very unlikely) however, we feel that the Lender is assuming that she wouldn!!!8217;t based on her being a first time Mother which we feel is more an assumption...

Savi_123 · 15 July 2018 at 8:25PM

The commute to and from her current employer is only 2.5 hours which we feel is a reasonable comprimise, and we have evidenced that she will be able to live with a Friend without any further costs. The travel costs would be paid in advanced due to the authorisation Flexible Hours request, and therefore, would only cost £30-40 a week.

ACG · 15 July 2018 at 8:37PM

I have a 14 month old child. There is not a chance in this world I would spend 3 days a week away from her every week, the same goes for my Mrs. I went on a stag do a couple of months ago for 3-4 days and struggled with that.

Also the fact that your partner has a job which is easily transferable means it is pretty likely your partner will not be going back to that job.

They are making an assumption, which is the correct one because they know that what you are proposing is not realistic.

amnblog · 15 July 2018 at 8:51PM

I am not wildly surprised by the view from CBS.

I suspect they are not confident your partner will return to the current job not matter how plausible you make it sound.

There is no question of discrimination here.

This is one for your Broker to sort.

sal_III · 15 July 2018 at 9:28PM

Savi_123 wrote: »

The commute to and from her current employer is only 2.5 hours which we feel is a reasonable comprimise, and we have evidenced that she will be able to live with a Friend without any further costs. The travel costs would be paid in advanced due to the authorisation Flexible Hours request, and therefore, would only cost £30-40 a week.

Wait until she has had the baby. Then come back and report how reasonable is 2.5h commute and/or 3 days away from home...

You said it yourself - she is unlikely yo return to the London job. Then go on and bash the Lender for refusing the application based on the same assumption. You could have cried discrimination if you were buying in London, but the rejection is primarily based on the relocation, not the maternity.

One possible solution is to find a lender that will lend to you as a solo applicant, at 28k salary it's a bit on the edge tho.

Savi_123 · 15 July 2018 at 10:36PM

She will be on Maternity till September 2019, so baby will be 1-years-old if she did return to her current employer. It could be argued that this is would appear to be against the !!!8216;norm!!!8217;, but we believe that this is a reasonable compromise. As previously mentioned, we have free child care support, and she is employed by the NHS and therefore, would need to return to the NHS 3-months after the end of her Maternity otherwise she risks paying back the Statutory Materity Pay/Allowance...

amnblog · 15 July 2018 at 11:00PM

The simple truth is that does not matter what your view is. The Lenders underwriter has taken a different one.

You need to explore elsewhere.

I must admit a two and half hour trip for Mum to stay three days away from new baby is not a story I would think will run with Lenders.

haras_nosirrah · 16 July 2018 at 6:37AM

It is easy to say she will live with a friend 3 days a week when baby is not here. I have two children and there is no way I would live 3 days a week away from them and I can't imagine many mothers would say differently. A 2.5 hour commute on top of an NHS shift (which going from what my nurse friends say is what 14 hour shifts) is also highly unrealistic. I doubt she will do the 3 months to be honest.

I would delay the move until after the 3 months post maternity leave and then apply for a job near where you wish to move to. If you need to start a new job you could lodge with friends Mon to Fri or tackle the 2 and a half hour commute.

The lenders look at plausibility and this case is failing based on that. The lenders don't have to lend their money and even the fos can't make them do so.

Mortgage Rejected by Underwriter - Grounds to Appeal? - Maternity / Relocation

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