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Old Feb 21st, 2011, 07:15 AM   1
excitedgal
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Getting a Mortgage while on Mat Leave


Im thinking about applying for a mortgage, have got exactly 12 wks til I'm due. Just wondered if I should mention in my application that I'll be going on Mat leave soon as it might not help my chances. Currently renting but need to find somewhere to live asap! Landlord has said we can give him a months notice anytime but we're on 4th floor in a 1 bed and I really struggle with the stairs already.

Think we might try and do it through one of the Shared equity schemes as we live in London and everythings so expensive! Just worried as once i go on Mat leave i will get full pay for 18 wks then it drops to SMP for the remainder. My husband has really bad credit so it needs to be in my name only. My salary will drop by anout 8k once I go back to work (next May) and I worry we wont be able to get any mortgage by then!

Any advice would be muchly appreciated!



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Old Feb 21st, 2011, 07:41 AM   2
blue_kat
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I wouldnt mention it myself if at all possible - I am not 100% sure but think its done on affordability now plus incomes so having dependant would bring that down....plus your income will technically be lower while on mat leave.

When I got my mortgage I was literally told I was being made redundant on the same day *unlucky* - it was actually done through the bank I worked for but I managed to get paperwork through and approved before it was common knowledge about the redundancys - meant I could borrow more while I was on a good income.

Probably makes no sense but I am basically trying to say : get as much as you can while you can!



 
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Old Feb 21st, 2011, 07:42 AM   3
Angela49uk
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If you mention you are on maternity leave, many companies will not lend the money to you.

However, will you be able to afford the mortgage whilst you are on maternity leave? Not being able to pay the mortgage can be very stressful! Also, will you be able to get a property on just your income, some lenders will give you 4 x a single income.

Do you have a deposit, as a lot of mortgage lenders will not lend on shared equity schemes.

xx



 
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Old Feb 21st, 2011, 08:28 AM   4
excitedgal
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Quote:
Originally Posted by blue_kat View Post
I wouldnt mention it myself if at all possible - I am not 100% sure but think its done on affordability now plus incomes so having dependant would bring that down....plus your income will technically be lower while on mat leave.

When I got my mortgage I was literally told I was being made redundant on the same day *unlucky* - it was actually done through the bank I worked for but I managed to get paperwork through and approved before it was common knowledge about the redundancys - meant I could borrow more while I was on a good income.

Probably makes no sense but I am basically trying to say : get as much as you can while you can!
I know what you mean thats kinda what I was thinking myself. Just not tell them and get as much as I can. Fingers crossed it all works out. Feel stressed thinking about how much I have still to do!



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Old Feb 21st, 2011, 08:35 AM   5
excitedgal
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Quote:
Originally Posted by Angela49uk View Post
If you mention you are on maternity leave, many companies will not lend the money to you.

However, will you be able to afford the mortgage whilst you are on maternity leave? Not being able to pay the mortgage can be very stressful! Also, will you be able to get a property on just your income, some lenders will give you 4 x a single income.

Do you have a deposit, as a lot of mortgage lenders will not lend on shared equity schemes.

xx
Yeah i thought that myself. I probably wont mention the mat leave. I should be able to afford the mortgage as it's only small, its basically a 25-30% share in a property. My husbands income will go towards the payments but I just cant put him on the application or it will get automatically rejected. He's just finished a 3 yr Trust Deed (similar to an IVA/bankruptcy)

We have a small deposit but not much. It's just that Im thinking if I dont get a mortgage now while im on full time wages we probably will need to wait about 3-5 yrs before we can get one (so husband can rebuild his credit rating) as when I go back to work part time it will be even harder.

Why dont the mortgage lenders lend on shared equity schemes? It's a bit of a minefield all this! Need a cuppa



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Old Feb 21st, 2011, 08:48 AM   6
Angela49uk
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Quote:
Why dont the mortgage lenders lend on shared equity schemes? It's a bit of a minefield all this! Need a cuppa
I have absolutely no idea to be honest with you. But before we purchased our house, we were looking at shared equity and suddenly the amount of mortgages available to us was reduced dramatically.

If you can afford it whilst on maternity leave, I say go for it and don't mention anything! Good luck xx



 
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