Mortgage approval with a baby on the way.

clacks

Just wondering if someone can give us some advice. My partner is 7 months pregnant, and about 2 months ago we received approval in principal for a mortgage. At the time we were asked if we had any dependencies and we answered no, but we never told the bank that we had a baby on the way (none of their business?)

Anyway it's come to the stage where we have found a property we really like and would like to seek the loan amount. Can I do this alone(i.e does my partner need to visit the bank at any stage?) Are we legally obliged to inform the bank about the pregnancy? Obviously she is quite heavily pregnant at will be difficult to hide..

GerardKeating

clacks wrote: »

At the time we were asked if we had any dependencies and we answered no, but we never told the bank that we had a baby on the way (none of their business?)

But, with respect, it is. You are asking them to lend you money and they have the right to ask questions which are relevant to your ability to make the repayments, and a baby would be a factor in this.

Depending on how the question is/was worded, you might be ok, but they might take the view that you lied on the application form, which is technically fraud.

ted1

They may give you more if you have a baby.

Zamboni

I don't think having a dependant would be a deal breaker.
If the approval in principle was based on two incomes however...

clacks

I take your point, but the question was do we have a dependent, not will we have, although I can see in this case I'm being a little pedantic.

My partner will get fully paid maternity leave, so hopefully the 2 wage issue might not be so bad...

Anyway people do you think it's best to come clean with all the facts?

Thanks for all the help by the way.

Electric

It may be an issue depending on what impact, if any, childcare will have on your ability to repay?

Monty Burnz

clacks wrote: »

Just wondering if someone can give us some advice. My partner is 7 months pregnant, and about 2 months ago we received approval in principal for a mortgage. At the time we were asked if we had any dependencies and we answered no, but we never told the bank that we had a baby on the way (none of their business?)

Funnily enough, this is exactly the attitude of people who borrowed their deposits from Credit Unions and tried all sorts of other tricks during the bubble, and are now blaming the banks for them being in trouble.

Of course it's their f***ing business!!

seamus

The bank's calculations, given your age profile and marital status will likely factor in the inevitability of you having a certain number of dependents within the life of the mortgage.

A child on the way is a material fact which affects your ability to borrow. So read all of your documentation, I would be very sure that somewhere in there is a clause which requires you to tell the bank of any change in your circumstances which is material to the loan offer.

wexford12

Would the bank want to know yes they would as your income will be lowered while your partner is off work and if she goes back you will have child minding costs.
Would I tell the bank No not if i was sure we could still pay the mortgage will they want to see you again maybe but you could try to wing it and sign and post any more information they need. If you have done all the forms they should not need to see you again its your solicitor that will have you signing all the boxs.

Monty Burnz

wexford12 wrote: »

Would I tell the bank No not if i was sure we could still pay the mortgage

And then we will have another lecture about 'irresponsible lending' if the sh!t hits the fan in a couple of years time.

People never learn, do they?

jethrothe2nd

My wife was pregnant when we applied for a mortgage - we told the bank and we were approved without any issue, although it was only on my salary - it may reduce the amount you are offered if your application is based on both

Supercell

Who is going to look after the baby when the maternity leave finishes?
Not being smart or anything but you need to think about it, child care is very expensive and you don't want to be bogged down with a jumbo sized mortgage and a kid to take care of at the same time, that just sounds like misery.

killers1

Whether or not your partner having a baby will affect your mortgage application will depend on how marginal a case it was to begin with. The fact that she is paid full pay whilst on maternity leave is a big help for you (she'll actually earn more while on maternity leave as her social welfare benefit will be deducted from her salary and she'll be taxed on a lower figure). If you easily qualified for the amount needed based on incomes there is no harm in telling the bank. If it was a marginal application and dependent on every bit of disposable income to get you over the line then say nothing. The question whether you have a dependent or not is simply a tick the box yes/no on a mortgage application form with no room to go into further detail so you have completed the application form correctly at the time.

StillWaters

I'd say nothing. I don't think you will need to go into the bank together, any signature needing a witness would be done with the solicitor.

Monty Burnz

StillWaters wrote: »

I'd say nothing. I don't think you will need to go into the bank together, any signature needing a witness would be done with the solicitor.

Yes, because the key here is to lie, cheat or steal your way into the most expensive property you can get your hands on. What could go wrong?

Iamhere

I wouldn't be worried about, we applied and got approval in the last few months, i told AIB a number of times that my wife was pregnant, they had no interest in it...

Monty Burnz

Iamhere wrote: »

I wouldn't be worried about, we applied and got approval in the last few months, i told AIB a number of times that my wife was pregnant, they had no interest in it...

The difference here being that you did tell them.

Iamhere

True, when its put like that i would say best to tell them.

StillWaters

Monty Burnz wrote: »

Yes, because the key here is to lie, cheat or steal your way into the most expensive property you can get your hands on. What could go wrong?

I missed the part where the OP is buying the most expensive house he can get his hands on, is pinned to the collar and is taking on a wholly unsustainable mortgage.

Monty Burnz

StillWaters wrote: »

I missed the part where the OP is buying the most expensive house he can get his hands on, is pinned to the collar and is taking on a wholly unsustainable mortgage.

So why is s/he worried about explaining the coming change in family circumstances?

okiss

I would tell the bank that your wife is expecting a baby but let them know she will be on full pay for her m leave. I would advise you to hold on longer before buying a house as the prices will fall further.
Also having a baby is expensive re prams, baby equipment ect.
Would your wife like to have a some time off after her maternity leave is up with the baby? Do you have to change you car due to the baby?
I know two couples who have had babies in the last year. They told me it is hard to get a place that will take a baby on at 6 months due to the staff requirements to do this & also the cost is €700 a month plus.
I would sit down and look at your income and outgoings at the moment to see where you could save money and put this money aside for a new home in 6 to 12 months time after the baby is born.

Newaglish

StillWaters wrote: »

I missed the part where the OP is buying the most expensive house he can get his hands on, is pinned to the collar and is taking on a wholly unsustainable mortgage.

If they were going to purchase a property that they could comfortably afford on a single salary, they wouldn't be worried about the bank finding out that a) they have overstated their income and b) have understated their expenditure.

OP: Unless the paid maternity leave is going to last for about 10-15 years you aren't both going to be on two full incomes for the foreseeable future, unless you pay a fortune in childcare costs. It's in your best interests for the bank to reduce your mortgage approval if you can't afford it.

Liberty__Belle

I just posted a thread before I saw this. I am in exactly the same situation. I am 7.5 months pregnant and got mortgage approval in principle today.

My concern is the same as yours.

I was pregnant when my husband and I made the applicaiton and I did not tell them. I asked the bank would it make a difference to our application if we applied with a dependent and she said yes. We would need to show more of a disposable income. Plus the fact that they will take child care costs into account.

If we purchase before the baby arrives, there is no problem.

If we purchase after the baby comes...this is the ordeal. Will they seek further statements etc that would show a children's allowance coming in or (in my case) a dramatic drop in salary?

I would be very interested in hearing the facts on this.

Monty Burnz

Liberty__Belle wrote: »

If we purchase before the baby arrives, there is no problem.

It's not really like that - you want to be covered if you or your partner lose your jobs. If the bank knows you have a baby arriving and that happens, then you can say they knew the whole story. If they don't, and the worst happens, you may find yourself explaining why you never told them about the baby.

Is it really worth the risk and the worry?

puffishoes

Is there a "Are you pregnant" section on the mortgage application?

Monty Burnz

puffishoes wrote: »

Is there a "Are you pregnant" section on the mortgage application?

There would usually be a question about dependants.

Liberty__Belle

It is practically impossible to get mortgage approval nowadays. I know we can afford the repayments without problem but trying to prove that to the bank is impossible.

I would rather not do anything to jeopardise our chance. Technically we have not lied. They ask if you have a dependent and the answer is no.

Monty Burnz

Liberty__Belle wrote: »

It is practically impossible to get mortgage approval nowadays. I know we can afford the repayments without problem but trying to prove that to the bank is impossible.

I think that getting approval is usually straightforward - the problem usually comes when you go to draw down the money.

Liberty__Belle wrote: »

I would rather not do anything to jeopardise our chance. Technically we have not lied. They ask if you have a dependent and the answer is no.

Technically, Bertie Ahern probably didn't lie either. The answer will be 'yes' unless you buy somewhere PDQ.

puffishoes

Monty Burnz wrote: »

There would usually be a question about dependants.

an unborn is not a Dependant.

Well not yet.

Monty Burnz

puffishoes wrote: »

an unborn is not a Dependant.

Well not yet.

Of course, you are correct. And Bertie Ahern probably did win some money on the horses.

Adina22

This thread makes no sense, a unborn child is not a dependant, try to understand what you are being asked, you are not being asked in the future do you plan to have a baby, this is for you as an adult to plan your own life. eg 1 year after getting a mortage you may give birth to twins but you may also get a new job or pay rise, like wise you may be pregnant and planing to adopt out the baby or the unborn child may not survive, you are not cheating or hiding anything, if the bank sees you are pregant they have no business to ask anything you may even be carrying the baby for someone else, sorry to go on but i hate when people ask a simple question and then get ridiculas answer back.. The bank asked do you have any dependants? the answer is simple at this point in time yes or no...