Mortgage, Pregnancy and baby

SamirNovus

Hi,

We have a loan approval a couple of months ago. At the time we were unaware we were pregnant, we already have 1 child.

So we had the mortgage offer in principle approved. Since then we have found a new build property, put down a holding deposit and set the wheel in motion with solicitors. With the timelines from the developer (4 months) it likely we will have had the baby by the time of drawdown and exchange. The mortgage was approved based solely on my (husband) salary as my wife does not work. The question of future children was not brought up by the bank but I did, out of interest at the time, ask if we would still be eligible for the same amount if we had a second dependent and the advisor said he calculations said that 2 dependants would be fine base on the salary figures.


I see many people discussing being pregnant between approval and drawdown and simply saying nothing to the bank but I think we are a step further in that we will likely have another dependant.
Should I make the bank aware now?
Will we have to redo the entire application? Bank statements etc
If we are sure the mortgage repayments are management with 2 should we just say nothing(I'm unsure I can cope with the stress on this!!)?

utmbuilder

Are you inviting the bank to the Christening?

Technically you should tell them, yes they will want to run the whole application again through approvals.

No one on here can tell you not to tell them or they will be banned for advising you to not be truthful with the bank.

machalla

In my own case having a child made no difference to the drawdown of the mortgage in the long drawn out timescale we went through.

I think I asked the mortgage advisor at the time and they said it wasn't relevant to drawdown of the mortgage. It was based on your position at the time of application and if that hadn't changed they weren't concerned.

They have also told you should be fine on the basis of the figures even with 2 dependents. I wouldn't be worried about it when they are happy that your current application could support the morgage.

Ultimately a bank wants to lend money to make money.

Calhoun

We were pregnant on the last application, it took so long (like 6 months as it was a remortgage).

We did not tell them though as each child impacts your ability to repay as far is the bank is concerned and will add them to the stress test. I believe they calculate at 500 per month per child that you will not be able to pay back.

The problem is the bank want to make money from you and they want a sure thing so they will this change of circumstance potentially serious and it could impact on the amount they lend you.

SozBbz

Its a funny one because lots of people get approval based on their position at the time of application. They very often then go on to get pregnant and have children soon after draw down. Banks know this but there are no clauses around recalculating affordability once the mortgage has been drawn down.

Mortgage approval is fairly binary/spreadsheet calculations. If its genuinely causing you stress, and you know the amount of your loan will still be approved after the recalculation, then just be honest but they will refresh the approval, so will probably require fresh payslips etc too.

Its likely that they might ask for fresh paperwork if you go beyond 3 or 6 months post approval, depending on the bank.

I know when I bought, nothing had really changed, but by the time I found a property, all the legals etc took their sweet time and also it was over the summer so nothing really happened for the month of August. I ended up having to refresh much of my paperwork and get the valuation redone.

SamirNovus

Thank you for all the responses! Its really appreciated.

Interested Observer

Was in the same situation, minus having a child already. We said nothing, are now in the middle of doing up our house.