Member Article

Rising Number of North East Women Looking for Mortgage Whilst on Maternity

A leading mortgage and protection advice company in North Tyneside has reported an increase in the number of families successfully applying for mortgages whilst enjoying maternity or paternity leave.

MG Financial Solution Ltd is a team of qualified advisers based on Silverlink and as a team the success the team has achieved for people on maternity has recently been outstanding.

In light of that, company director Martin Graham has put together advice for those looking to secure lending to move to a larger house as the family grows. He said:

“You may be due anytime or already have a new baby to add into your growing family and suddenly realise the space you currently have just doesn’t cut it. But can you do anything about it?

“The resounding answer to that is yes. There is a misconception that if you are on maternity you can not secure a mortgage, but times have changed massively and in fact securing that offer from a lending body is becoming increasingly more possible.

“Historically lenders were nervous to calculate a mortgage based on a woman’s salary on maternity, in case she chose not to go back to work. Some lenders also took into account the affordability aspect when looking at the added expense of a child.

“However, recently this has come to be seen as discriminatory and many lenders will now consider the income you earned prior to your maternity or paternity, or offer alternative options to your adapted situation.

“It is true that mortgage rules have generally got tougher, but perversely qualifying criteria for the ever growing competitive deals has been loosened. Here is your top five actions you can do whilst on maternity to enhance your chances:

1. Make sure you do your homework and appoint a fully qualified adviser
2. Secure a letter of employment from your employer confirming your return date and expected salary
3. Use just one partners income, meaning you don’t have to declare childcare costs, but still secure the mortgage as joint
4. Declare yourself on ‘temporary leave’ but make sure you can demonstrate a two year employment history and a return date (if you plan to return work before your first mortgage payment they should accept your regular income).
5. Consider spreading payments over a longer term and demonstrate how you can manage those payments (reducing other debts and direct debits can be positive) in your current circumstances.

“There are course some exceptions, including self employed people on maternity, or those employed by companies that pay a maternity leave package. Even so, if you get the urge or need to move during your maternity leave, it is always worth taking advice!”

This was posted in Bdaily's Members' News section by Anna Toms .