Mortgage on maternity leave

Hi ,I just have a query about getting a mortgage on maternity leave.

Our situation is I work in civil service, salary 49000
Husband private sector salary 63000 ,total net approx €5800
We are currently living in husbands fathers old house. (No rent) left to my husband so house is in his name,however it is not suitable for our growing family however we are v grateful to live in it rent free.House worth <100000 and husbands has siblings whom he would like to split with if ever sold
Have 3 kids and want to buy house closer to my family ASAP .
Currently saving 1200 /month
Childcare expenses 1000/month
Loan 450 ,15000 left , hoping maybe to use current house to get small remortgage and clear this loan
Car loan 300 ( 2 years left)
We both have significant commute , fuel cost approx 500/month
Am due 4th baby in July, hoping to have approx 23000 savings by this time. I will be on full pay when on maternity leave . I think we will require approx 230000-260000 mortgage , does anyone have advice on how banks may consider our situation .also if we did get chance to move my child care costs will reduce significantly as we will be closer to family.
I plan to return to work after 8 months or so , do you think the banks will insist that I wait until I return to work before considering us for mortgage.
We are both 38, so are aware age may factor also.

I would appreciate any advice , reading back I'm almost embarrassed as I feel we should have more saved etc however we have had significant other expenses that are thankfully gone,and would be delighted to move onto the next stage of our lives with our ever growing family

Thanks in advance z

Hi- your best advice will come from a mortgage advisor. You don't need to apply for a mortgage but if you pick 1/2 banks and meet with them they will be honest.

I'm in a similar situation and we met with the bank last year. They were up front, said what they would expect as a deposit and how much we should be saving each month based on our earnings, etc.

My advice - you will need a bigger deposit. Most banks will look for your 10% deposit saved plus legal and stamp costs. On top of this, the banks we met with both factor in that you should have savings of approx €6k for what they call "move-in costs". So at the top end, if you want a mortgage of 260,000 (house purchase price approx. 290k based on 10% deposit) then you will need €29k plus €6k legal and stamp costs plus €6k move in so a total deposit of €41k.

Again - best advice would be to just meet with a real mortgage advisor. The terms are changing all the time and there could be factors you haven't mentioned that are in your favour.
Good luck!

If you're willing to postpone your plans for a few months, then you can arrange your finances now so as to give you a better chance later. Use your savings now to clear both loans as they will count against you on a future mortgage application. You won't be able to get a re-mortgage to refinance a loan. Use the saved loan repayments to increase your savings to €2,000 per month. When you have the deposit saved up, then you should be in a good position to borrow the amount you want.

The maternity leave shouldn't be a problem as long as you have a confirmed date to return to work.

See also these tips on preparing for a mortgage application.