Parental leave and mortgage

D

daines

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Hi just a quick query regarding parental leave and income for mortgage. My husband has been taking one day per week parental leave for 2 years to look after our children. So his income has been 37600. In September they start the free preschool place so he won't need to do that anymore and will begin to work full time. His wages will go back to 47000. He has been in his company for 12 years and its a public servant position so exact wages are guaranteed. Will the bank take into account the 47000 that he will be earning then (perhaps with letter from work? or only the 37600 that would match his previous P60's?

Thanks.
 
They'll probably issue approval in principle, subject to returning to work full time. A salary certificate from employer will be required, and you can explain difference from P60.
 
I have just been through this with KBC. My wife is a public servant and has been taking unpaid parental leave for one day a week. She will be back to full time in early May. We got an earnings cert from her employer which earning are 40 now going back to 50 in May.

For our approval in principle the under-writer didn't go on the May amount. Our contact in the bank said we could go for an exception or go back to under-writer in May with payslips.
 
Great to see a real example.
I'm open to correction on this, but I understand that KBC go through a complete underwriting process to issue an aporoval in principle.
Some lenders delay part of the underwriting until you have a specific property, so they can put in a clause.
In any case, the CBI rules are based on actual gross income, so would need to be back on full salary before drawing down if you exceed the 3.5 LTI rule without it (or apply for an exemption).
 
That is interesting about the difference with the KBC process. We got preapproval with EBS 15 months ago and they said they could include changes to our circumstances that would occur within six months of the date of application for preapproval (if they could be stood over).

The reality for us is that we are highly unlikely to need a draw down before May as we have not even put a bid on a place yet, so it should be fine.
 
That's great thanks. We won't be looking for mortgage approval until early next year when we have our deposit and account looking good so the parental leave will be done by then. We've been needing to move for 8 years but due to family reasons and negative equity we've been trapped where we are, so I was worried that they'd only look at p60's and not the actual salary he'd be on. Thanks so much for taking the time to reply.
 
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