Mortgage - Borrowing Additional Funds - Maternity Leave

[sagarich]

Currently have a mortgage with Halifax and looking to borrow an additional £40k to fund an extension.

My wife is currently on maternity leave and due to go back to work part time in July.

On paper we can easily afford to repay additional funds based on just my income, but from experience that's not always the case when it comes to mortgage providers and their affordability calculators.

How to providers review income for someone on maternity leave. Are they classed as £0 when on statutory or is it based on past full salary or future PT salary?

Thanks in advance,.

[Sarnie]

sagarich said:

Currently have a mortgage with Halifax and looking to borrow an additional £40k to fund an extension.

My wife is currently on maternity leave and due to go back to work part time in July.

On paper we can easily afford to repay additional funds based on just my income, but from experience that's not always the case when it comes to mortgage providers and their affordability calculators.

How to providers review income for someone on maternity leave. Are they classed as £0 when on statutory or is it based on past full salary or future PT salary?

Thanks in advance,.

It will be based on the PF salary your wife will go back on and will usually need to be confirmed in writing by the employer........

[sagarich]

Sarnie said:

It will be based on the PF salary your wife will go back on and will usually need to be confirmed in writing by the employer........

Thank you, she has a meeting with them this afternoon to confirm everything. I've asked her get written confirmation.

Will Halifax need to revalue our house as part of the process? Or will they use the valuation from 14 months ago?

Finally, I assume I have to stick with my current provider? I can't shop around for a better rate for the additional borrowing?

[Sarnie]

sagarich said:

Thank you, she has a meeting with them this afternoon to confirm everything. I've asked her get written confirmation.

Will Halifax need to revalue our house as part of the process? Or will they use the valuation from 14 months ago?

Finally, I assume I have to stick with my current provider? I can't shop around for a better rate for the additional borrowing?

If you are not tied into your current deal then you can shop around, no reason to stay with Halifax if another provider can give you the same lending, for less................as you are applying for further lending you will pretty much have to go through a full application anyway so you may as well, especially as Halifax's retention and further lending rates are usually pretty poor......with regards to the valuation Halifax will use the previous valuation figure +/- whatever the HPI is adding or taking away from property in your postcode....which may or may not accurately reflect your individual property......

[sagarich]

Sarnie said:

sagarich said:

Thank you, she has a meeting with them this afternoon to confirm everything. I've asked her get written confirmation.

Will Halifax need to revalue our house as part of the process? Or will they use the valuation from 14 months ago?

Finally, I assume I have to stick with my current provider? I can't shop around for a better rate for the additional borrowing?

If you are not tied into your current deal then you can shop around, no reason to stay with Halifax if another provider can give you the same lending, for less................as you are applying for further lending you will pretty much have to go through a full application anyway so you may as well, especially as Halifax's retention and further lending rates are usually pretty poor......with regards to the valuation Halifax will use the previous valuation figure +/- whatever the HPI is adding or taking away from property in your postcode....which may or may not accurately reflect your individual property......

Thanks Sarnie, we're 14 months into a 5 year fix. So I assume that's a no on borrowing elsewhere unless it says otherwise in the small print?

[Sarnie]

sagarich said:

Thanks Sarnie, we're 14 months into a 5 year fix. So I assume that's a no on borrowing elsewhere unless it says otherwise in the small print?

Then you are at the mercy of their HPI valuation and lending criteria.....