Mortgage approval on maternity leave

K

KHanney

Guest
Hi,
My partner and I are now just ready to buy our first house (i.e. deposit saved). Both our salaries need to be considered. We are expecting our second baby in January so my partner will begin maternity leave around christmas. This will be unpaid and she will only receive the state allowance. We are hoping to purchase before christmas (I know it's tight). My question is, if the bank see she is pregnant will this affect there approval decision. Also, if we have not bought before then is it true that they will not consider her salary while she is on maternity leave . This will mean we have to wait not only til she goes back to work but also has 4 months payslips (talking at least another year). Our plan is that she will not return to work at all and we have budgeted accordingly.
Any advice is very much appreciated.
Thanks
 
If I'm reading your post correctly, you want to apply for a mortgage based on both salaries and you seem to indicate that you wouldn't get the amount you want on just your salary. But your wife is planning to leave work after her maternity leave. Is that correct? If so, I'd consider it a very risky proposition. If a bank won't give you the amount you want based on your salary alone, it's because they believe you can't afford that amount on just one salary. You need to consider the long term affordability, not just whether or not you can afford it now. Interest rates will rise - it's a question of when, not if. Tax rates may also rise. You may suffer a pay-cut.

I'd recommend that you lower your target and apply for a mortgage that you will be approved for, based on your salary alone.

That said, if you are applying for a mortgage now, there's nowhere on any mortgage application form that I've seen that asks you if you're pregnant.
 
hey Khanney,
does your wifes work know she is not returning? she will need a salary certificate from work for the application and they might not write it if they knows she's not coming back.
i recently applied for a mortgage with only 1 income of 30k+ bonuses and overtime. not sure what percentage they used for bonus and OT.
anyway we were refused by BOI. Im on disability and they dont take any social welfare payment into consideration.
AIB wont even consider us as we have 2kids and their criteria states you need a disposable income of 2500 pm after you pay your mortgage. so by their numbers you'd need to be on 40k+ for family of 4. this is based on a mortgage repayments of 600pm.
We have deposit of over 10% saved and we pay nearly double in rent every month, but still didnt get it. it was the single income that killed us.
hope this helps.

mo
 
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