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According to a uSwitch survey of 2,000 female applicants aged 25 to 45, one in 10 felt they’d been discriminated against by lenders over their plans to start a family.
And data from Trussle revealed that a fifth of prospective buyers between the ages 25 and 34 said they were putting off having children in the hope their chances of securing a mortgage would improve.
Can lenders ask if applicants are pregnant?
Legally, lenders don’t have the right to ask you if you’re pregnant or on maternity leave, but that won’t necessarily stop them finding out based on your work or financial circumstances.
Tighter lending rules mean lenders are lawfully entitled to take account of future changes in your incomings and outgoings, and of course, having a baby can affect both.
How will new arrival affect your finances?
Although many buyers avoid disclosing their pregnancies to lenders and brokers, it’s often wise to be honest.
Adding another member to your family will certainly have an impact on your finances, even if you’re well prepared for the new arrival. And this is partly why lenders will take pregnancies into account when deciding whether to approve a mortgage or not.
Failure to keep up with your mortgage could lead to financial uncertainty and even the loss of your home.
When will you return to work?
According to research from the Observer, applicants on maternity or shared parental leave are often asked to provide evidence that they’ll go back to work within three months of their application.
This is likely to be part of the lender’s affordability checking process, and will be used to determine whether the applicant will be able to manage repayments when their income is lower than usual.
If you’re self employed, you might have more flexibility when it comes to returning to work - gradually taking on work projects at times that suit you. Nevertheless, lenders will be interested to know when your income will increase and they might reject your application if they’re concerned that you’ll struggle to repay your mortgage debt.
How can you increase your chances of approval?
Seeking the help of a mortgage broker can be one way to increase your chances of having your mortgage approved. Your broker will take your finances into account and assess which lenders are most likely to approve your application. They’ll help you through the whole mortgage process, saving you time and money. To find out how TaylorMade can help you secure a mortgage, whether you’re expecting a baby or not, please get in touch with our team today.