Pregnancy and Looking for a mortgage

[RedOnion]

It's a new build

Very material fact.
With a new build, it can be difficult to get a 'subject to mortgage' clause added to the contract. Talk to your solicitor about it, but it might be a standard contract from developer with no scope to change.

 

[jedentag]

This is bad advice particularly in relation to a new build. You will not be negatively impacted once you provide a letter from her employer stating her return date to the same position and salary. Not exactly the same but we switched our mortgage while my spouse was on the unpaid part of her maternity leave with no problems at all. We were however comfortably inside LTI/LTV limits

What might be a problem is if you have already maxed out at 3.5/4x loan to income rules for your AIP. A dependent has to be factored into your affordability. This really depends on your lifestyle and whether your current rent/mortgage plus savings can easily cover the costs associated with childcare.


3/4 months...possibly 6-8 months. Builder's schedules generally get longer. Your existing AIP could expire and you will need a new or extended AIP. You will have to provide up to date financials at some point either for AIP or drawdown. You really don't want to be in a position where you have signed a contract and you no longer have AIP. There will be penalties for not fulfilling your contractual obligations

With all of the above, you know that the baby will arrive before drawdown and you won't be able to provide the same financial information putting your AIP at risk. You really need to be proactive about this and reach out to the lender, get the return to work letter from your spouse's employer and get the AIP extended to 6 months from today.

Also, it would help if you provided some of the relevant info in terms of salaries, property price, LTV/LTI, mortgage term, ages(approx) etc. Without that detail it is hard to give a good steer on the likely outcome

Thanks for the advice, 80% LTV, 23 year term age 42

 

[skrooge]

Thanks for the advice, 80% LTV, 23 year term age 42

It's not the LTV that is going to be the limiting factor here it's the change in your combined income and what that means relative to the proposed loan.

How much of your combined income did your partner account for? The larger the share the more her maternity leave well negatively impact any affordability calculations.

Specifically:

how much will your LTI change because of the maternity leave?

How much will Your monthly repayment burden (loan repayment as a percentage of after tax income) increase when your partner's income is reduced?

 

[jedentag]

Specifically:

how much will your LTI change because of the maternity leave?

How much will Your monthly repayment burden (loan repayment as a percentage of after tax income) increase when your partner's income is reduced?

LTI approx €105K less, and approx 30% more.

I think we really need to sell apartment at this stage and reapply. Now to see if government extends the winter ban on valid notice of terminations for rental properties. Could be looking at another year delay if that's the case. Would be frustrating but not the end of the world, plenty in much worse positions than us and we'll just have to sit tight.

Thanks again for the advice.