Mortgages following maternity leave
Discussion
I will be messaging closer to the time Sarnie, but thought I'd post up a thread as any replies may help others.
TL:DR - mortgage fix ends just after mat leave, wondering if we'd get a mortgage if wife goes back part time
Our mortgage fix is coming to an end in March, wife is due to return to work following maternity leave in Jan so her boss is asking for a meeting to ask what plans are. I'm part way through an FTC (end date Oct '21) but will be looking for a perm role given the current climate.
Outstanding mortgage is 300k on a 500k property (maybe 550 but given the LTV don't think it changes things too much?), current combined income 100k (wife on 35k). Nursery fees are extortionate (1300/m with childcare vouchers), and would have pre/post school clubs (150/m) so wife may go back part time. Income would drop 750/m, childcare 450/m so purely on the numbers doesn't stack up, but would allow for more family time. Would lenders be willing to lend whilst I'm on FTC with the other half on a much reduced salary?
What have others done in this situation, and were you able to remortgage without problems?
TL:DR - mortgage fix ends just after mat leave, wondering if we'd get a mortgage if wife goes back part time
Our mortgage fix is coming to an end in March, wife is due to return to work following maternity leave in Jan so her boss is asking for a meeting to ask what plans are. I'm part way through an FTC (end date Oct '21) but will be looking for a perm role given the current climate.
Outstanding mortgage is 300k on a 500k property (maybe 550 but given the LTV don't think it changes things too much?), current combined income 100k (wife on 35k). Nursery fees are extortionate (1300/m with childcare vouchers), and would have pre/post school clubs (150/m) so wife may go back part time. Income would drop 750/m, childcare 450/m so purely on the numbers doesn't stack up, but would allow for more family time. Would lenders be willing to lend whilst I'm on FTC with the other half on a much reduced salary?
What have others done in this situation, and were you able to remortgage without problems?
If you apply while she is on maternity leave the lender will possibly ask for a letter from the employer to confirm she will be returning to work and details of her income/hours when she returns.
Looking at your income and child care, it might fit affordability on your income and 1/2 her income, even with the child care.
I have quickly tried it on a lender affordability calculator and it fits. But depends on the overall term you want or are able to get. Have a play with some lender affordability calulators, that will probably give you some peace of mind.
Looking at your income and child care, it might fit affordability on your income and 1/2 her income, even with the child care.
I have quickly tried it on a lender affordability calculator and it fits. But depends on the overall term you want or are able to get. Have a play with some lender affordability calulators, that will probably give you some peace of mind.
Edited by Mortgage_tom on Saturday 27th June 12:44
Do you actually need to remortgage, or would a product switch (a new fixed rate term) with your current lender be an option?
Provided you’re not changing the amount borrowed or the term and your payment history is in order most lenders will do you a product switch without any status checks.
I’ve just done ours with Nationwide and it took about 2 minutes on their website.
Provided you’re not changing the amount borrowed or the term and your payment history is in order most lenders will do you a product switch without any status checks.
I’ve just done ours with Nationwide and it took about 2 minutes on their website.
Was in simular situation recently, fixed expirying I just switched to new product with same lender they didn't do any affordability checks I just logged into portal selected product, got some paperwork to sign and that was it, I didn't change the terms though like amount borrowed /length etc.
Edited by PostHeads123 on Monday 29th June 11:43
Edited by PostHeads123 on Monday 29th June 11:45
If you’re currently with Nationwide it is so simple.
They don’t even ask about status, income, or expenditure - my OH has just gone back to work part time after maternity too.
You just log in, it shows you the available rates and terms, choose which you want, select how you want to pay the fee or add to the loan, and click finish. Job done in less than 2 minutes.
You can set up the switch 5 months before your current fixed rate ends, but you can only start it up to 3 months before. Ours finishes in September but I switched in May and it starts from July, you can set the start date as part of the process. Our rate reduced over 1% so I wanted to start it ASAP, if your rate was going up you can run your existing term to the end.
You don’t need an online account to switch, just your mortgage account number and some basic personal details. You can have a look at rates without completing the process.
They don’t even ask about status, income, or expenditure - my OH has just gone back to work part time after maternity too.
You just log in, it shows you the available rates and terms, choose which you want, select how you want to pay the fee or add to the loan, and click finish. Job done in less than 2 minutes.
You can set up the switch 5 months before your current fixed rate ends, but you can only start it up to 3 months before. Ours finishes in September but I switched in May and it starts from July, you can set the start date as part of the process. Our rate reduced over 1% so I wanted to start it ASAP, if your rate was going up you can run your existing term to the end.
You don’t need an online account to switch, just your mortgage account number and some basic personal details. You can have a look at rates without completing the process.
Almost exactly the same mortgage figures as us.
300k on property 600k.
Our new re mortgage rate cuts in this month 1.16% with HSBC fixed 2 years.
I didn’t tell HSBC anything, just had to pick what rate we wanted online and sign. No questions asked. I got made redundant in March, wife has just given birth to second baby so on mat leave. Her company are quite good. Full pay for 6 months then tapers off until 12 months. I don’t think I ever told them our child care costs. Pretty similar to yours. (1600 a month) London or SE by any chance? Our friends In Cornwall moan and they pay half why we do. Anyway that’s enough moaning about that.
If you stay with the same lender should be easier to be approved.
300k on property 600k.
Our new re mortgage rate cuts in this month 1.16% with HSBC fixed 2 years.
I didn’t tell HSBC anything, just had to pick what rate we wanted online and sign. No questions asked. I got made redundant in March, wife has just given birth to second baby so on mat leave. Her company are quite good. Full pay for 6 months then tapers off until 12 months. I don’t think I ever told them our child care costs. Pretty similar to yours. (1600 a month) London or SE by any chance? Our friends In Cornwall moan and they pay half why we do. Anyway that’s enough moaning about that.
If you stay with the same lender should be easier to be approved.
Gassing Station | Finance | Top of Page | What's New | My Stuff