Mortgage & maternity leave: bank will not release the money until I go back to work

H

hedgehog

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We are in the process of buying a house. We were offered a mortgage verbally with no conditions atttached but then the bank decided that they would not release the money until I go back to work from maternity leave. Is there anything we can do about this? I am getting the same money on maternity benefit as I was working and will be going back to work.
 
It sounds like they are not willing to submit a letter of offer until you are in full-time employment again. A verbal offer is not worth the paper it is written on! You could try another lender. Also you could perhaps offer to show the bank any proof of your continued earnings, for example your bank account and employment contract/legal agreement saying you get full pay when on maternity leave. Of course, their concern may be that you are not intending to return to work after your leave it up, although they may not admit as much.
 
Thanks a lot for that. We will try it. Have to laugh though. Sure in this economy who could give up work??
 
we were recently mortgage approved while i was on maternity leave. we didn't mention it and my employer completed the employment form without making reference to it. i suggest that you go to another lender
 
hedgehog said:
We are in the process of buying a house. We were offered a mortgage verbally with no conditions atttached but then the bank decided that they would not release the money until I go back to work from maternity leave. Is there anything we can do about this? I am getting the same money on maternity benefit as I was working and will be going back to work.
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You're on protected leave, therefore you are guaranteed employment, it shouldn't make a difference. Your bank has effectively told you that they are not giving you a mortgage because you are pregnant, I'm not entirely sure that's prudent or legal. Personally I'd raise it as a complaint within the bank and see what their response is.
 
Latrade said:
You're on protected leave, therefore you are guaranteed employment, it shouldn't make a difference. Your bank has effectively told you that they are not giving you a mortgage because you are pregnant, I'm not entirely sure that's prudent or legal. Personally I'd raise it as a complaint within the bank and see what their response is.
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I agree with the above . I cant see it as a valid reason to not give the mortgage
 
Remember though, there is no obligation for the OP to return to work post Maternity Leave. I suspect the Bank is ensuring that 1. that you will go back to work, and 2. You have a job to go back to. There are a lot of posts here that refer to redundancy post Maternity Leave.
 
Thanks for the responses. I am finding it very annoying to be honest as I feel that I am being punished for having a baby. They are saying that they will release the money once I go back but that I will have to get a letter from our HR dept saying that I am still with the company. Such nonsense.
 
Your mortage is based on both incomes so I think it makes sense.

I know a few people who didn't return to work after mat leave. A friend of mine isn't returning in a few months but is holding off telling her employer just in case anything changes.
 
becky said:
Your mortage is based on both incomes so I think it makes sense.

I know a few people who didn't return to work after mat leave. A friend of mine isn't returning in a few months but is holding off telling her employer just in case anything changes.
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That's all well and good, but that's not the bank's business, anyone could be on verge of handing their notice in, it isn't only new mothers who leave work. As far as the bank is concerned hedgehog is in full employment, but is currently on protected leave. They can't use pregnancy as a reason to refuse a mortgage.

As stated formally write to the bank based upon what you have been told and raise a complaint.
 
Thanks Latrade, I am def going to write a letter to the bank in qs. seems to be very common with the particular bank. Was talking to a friend about it and the same bank did the same thing to her cousin. I wonder would it apply to a female employee of the bank. Methinks not.
 
no service provider is allowed to discriminate on any of the grounds set out in the Equal Status Act and it appears, in this case, that they are.

from www.citizensinformation.ie

There are two distinct pieces of legislation in place in Ireland which set out important rights for people and specifically outlaw discrimination when it occurs. The Employment Equality Acts 1998-2008 and the Equal Status Acts 2000-2008 outlaw discrimination in employment, vocational training, advertising, collective agreements, the provision of goods and services. Specifically, goods and services include professional or trade services; health services; access to accommodation and education; facilities for banking, transport and cultural activities.
Under the equality legislation discrimination based on any one of 9 distinct grounds is unlawful. These grounds are:
  • Gender
  • Marital status
  • Family status
  • Sexual orientation
  • Religion
  • Age (does not apply to a person under 16)
  • Disability
  • Race
  • Membership of the Traveller community.
What is discrimination?

Discrimination is defined as less favourable treatment. A person is said to be discriminated against if he/she is treated less favourably than another is, has been or would be treated in a comparable situation on any of the 9 grounds. To establish direct discrimination, a direct comparison must be made, for example, in the case of disability discrimination the comparison must be between a person who has a disability and another who has not, or between persons with different disabilities.
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Nige said:
no service provider is allowed to discriminate on any of the grounds set out in the Equal Status Act and it appears, in this case, that they are.

from www.citizensinformation.ie
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Sorry, but mortgage lending (and insurance) are all about managing risk. The bank has obviously decided that pregnant women are in a higher risk group and have refused the mortgage on those grounds.

Dont insurance companies provide differing quotes based on gender and age? By your argument, that should also be illegal.
 
no service provider is allowed to discriminate on any of the grounds set out in the Equal Status Act and it appears, in this case, that they are.
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Tell that to my insurance company.
 
To be honest greentree I fail to see how I am a greater risk because I have a new baby. I still have income coming in through my maternity benefit. My OH is in a secure job so no prob there either.
 
greentree said:
Sorry, but mortgage lending (and insurance) are all about managing risk. The bank has obviously decided that pregnant women are in a higher risk group and have refused the mortgage on those grounds.

Dont insurance companies provide differing quotes based on gender and age? By your argument, that should also be illegal.
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Insurance only have exemptions on certain grounds (as do other services such as Religious services etc). However, exemptions does not extend to banking. Banking and credit provision are well established as a service and they must comply with the Act. Again, the pregnancy is irrelevant because the contract of employment is in place and is protected under Maternity legislation. The OP is on protected leave which means she is still in full time employment and will be so once the maternity leave ends.

They have no grounds to make such a condition on the loan.
 
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