For the first blog I thought we would choose a subject I’m regularly asked about and possibly the most relevant topic for a mum’s group.
Is it possible to move house or remortgage when I’m on maternity leave?
The short answer is yes! However it does add an extra layer to an already complicated process.
Different lenders will take different views on the situation, it should however be possible to find a lender who will do their affordability calculations based on pre-maternity income as long as you can provide proof of this as well as details of your return to work plans.
They may require a letter from you or your employer detailing your return to work, including date, pay and conditions
As lenders must now go to greater lengths to satisfy themselves that the mortgage will be affordable, they may ask for further proof of how the mortgage will be paid during the maternity leave. They will also factor in what your likely childcare costs will be upon return to work. So calculating what they will be is an important step. However if you’re lucky enough to have grandparents who will be helping out, a letter explaining that should suffice.
Many borrowers, who have moved onto their lender’s standard variable rate and seen monthly payments go up, should not feel that being on maternity has left them with no alternative. If you’d like any more information on this or any other mortgage – related topics please feel free to get in touch.
As a thank you for all the recommendations I have received through Harrogate Mumbler, I will continue to provide advice without charging my usual broker fee. I’m always happy to have a quick chat on the phone and can arrange meetings at times to suit young families. Stewart Amos
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
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