Call us: 0345 305 2540

Pregnant borrowers feel penalised by lenders

MORTGAGES | 08.07.2019

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.

From to poor credit, it’s no secret that there are various hurdles that can stand in the way of home ownership. But research suggests that accessing a mortgage can become even more difficult when an applicant is pregnant.

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.

Talk to us

If you're unsure and need some advice just give us a call, our expert team of advisers are available to help you choose the mortgage that is right for you.

0345 305 2540 info@taylormade-finance.co.uk

By clicking on the above link you will be leaving the regulated site of TaylorMade Finance Ltd. TaylorMade Finance Ltd is not responsible for the accuracy of the information contained within the linked site.

TaylorMade Finance Ltd is authorised and regulated by the Financial Conduct Authority.

Complaints:

In the event that you wish to complain, you can contact us by email, telephone or letter.

Our address for this is:
Complaints Officer, TaylorMade Finance Ltd, 4 Church Road, Urmston, Manchester, M41 9BU. Our email address is info@taylormade-finance.co.uk and our telephone number is 0161 776 1089. We will then investigate the issues raised and inform you of our findings. Should you be unhappy with the resolution to your complaint you may contact the Financial Ombudsman Service, who can be contacted at the following address: Financial Ombudsman Service, Exchange Tower, London, E14 9SR.

Email: complaint.info@financial-ombudsman.org.uk
Phone: 0800 0234 567

Your mortgage will be secured against your property.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Our fee for this service is 1.95% of the mortgage balance (minimum £1,295 to a maximum of £2,995 although reduced to maximum £1,995 without debt consolidation). Typically this will be £1,995.