Mortgage draw down during Maternity leave

breaksman · 01-02-2021 11:43pm #1

Hi all,
In December me and my wife both received our letter of offer from the bank (AIB) for a mortgage of 300k on a property worth 400k

We in January signed the contract for our the house and are awaiting completion of sale this month to come through as developer has told us the houses will be completed within next week and will be ready for snagging.

We have deposit paid with 10k cash and received 30k from the HTB

My wife gave birth to our first born recently and is now receiving her statutory maternity benefit.

We both were working full time and applied together for the mortgage and have given all payslips up until the offer offer of letter was sent out.

We have not lost our jobs and my wife's job is still secure and I am still receiving full pay even on paternity leave.

I am told that the banks are now asking for payslips just before we can draw down our mortgage which we expect to do this month or next. I am out of my mind with worry that they can now refuse this based on the fact my wife is on maternity leave.

Can they legally refuse to draw down on this basis? the mortgage is with AIB

Is worth noting I am on quite a bit more than my wife and every documentation we have given them up until now has been correct.

Sorry if this has been asked before, but I have not used boards in quite a while and this news has knocked me back quite a bit.

Thanks

BrosnanL27 · 02-02-2021 4:31pm

breaksman wrote: »

Hi all,
In December me and my wife both received our letter of offer from the bank (AIB) for a mortgage of 300k on a property worth 400k

We in January signed the contract for our the house and are awaiting completion of sale this month to come through as developer has told us the houses will be completed within next week and will be ready for snagging.

We have deposit paid with 10k cash and received 30k from the HTB

My wife gave birth to our first born recently and is now receiving her statutory maternity benefit.

We both were working full time and applied together for the mortgage and have given all payslips up until the offer offer of letter was sent out.

We have not lost our jobs and my wife's job is still secure and I am still receiving full pay even on paternity leave.

I am told that the banks are now asking for payslips just before we can draw down our mortgage which we expect to do this month or next. I am out of my mind with worry that they can now refuse this based on the fact my wife is on maternity leave.

Can they legally refuse to draw down on this basis? the mortgage is with AIB

Is worth noting I am on quite a bit more than my wife and every documentation we have given them up until now has been correct.

Sorry if this has been asked before, but I have not used boards in quite a while and this news has knocked me back quite a bit.

Thanks

Hi

We are in a very similar position. Is your wife's job topping her wages up or is she just getting the standard €245 a month?

Our broker has told us that the reduction in pay on the payslip will ring alarm bells with the bank. However, he reckons as long as your wife's job can provide a letter to say she is returning to the same role (providing a date of return which seems ridiculous but best just give an estimate) and the same salary, it should be ok. We are with PTSB and after some research it seems AIB are the most lenient/understanding when it comes to mat leave (we may well end up changing to AIB if PTSB don't play ball). The letter should absolutely suffice and should it not, a letter from your solicitor should do the job. It would be very unfair to not allow draw down due to mat leave and you could definitely go down the discrimination route.

BrosnanL27 · 02-02-2021 4:33pm

BrosnanL27 wrote: »

Hi

We are in a very similar position. Is your wife's job topping her wages up or is she just getting the standard €245 a month?

Our broker has told us that the reduction in pay on the payslip will ring alarm bells with the bank. However, he reckons as long as your wife's job can provide a letter to say she is returning to the same role (providing a date of return which seems ridiculous but best just give an estimate) and the same salary, it should be ok. We are with PTSB and after some research it seems AIB are the most lenient/understanding when it comes to mat leave (we may well end up changing to AIB if PTSB don't play ball). The letter should absolutely suffice and should it not, a letter from your solicitor should do the job. It would be very unfair to not allow draw down due to mat leave and you could definitely go down the discrimination route.

Sorry meant €245 a week!

Trish56 · 02-02-2021 5:15pm

Hi,
Yes you will have to provide up to date payslips and bank statements before drawdown and if your wife is getting paid while on maternity leave there will be a breakdown on the payslip re Maternity Leave benefit or if she is not getting paid by her employer you will need a letter from the employer stating that she is on maternity leave since

(date) and is due back to work on

(date) this will be required in both instances above.

There is no need to worry as this is standard and there is usually no problem once the lender is advised that she is still in permanent employment. Your Broker should be familiar with this.

breaksman · 02-02-2021 5:34pm

Thanks yeah she's not getting topped up by employer, just the standard €245 or so but he job is guaranteed and can get that in writing from her employer. Solicitor couldn't tell us, he just warned we would need up to date payslips on draw down and that the banks have only stated doing this since covid

BrosnanL27 · 02-02-2021 8:42pm

breaksman wrote: »

Thanks yeah she's not getting topped up by employer, just the standard €245 or so but he job is guaranteed and can get that in writing from her employer. Solicitor couldn't tell us, he just warned we would need up to date payslips on draw down and that the banks have only stated doing this since covid

You'll be fine then so don't worry. As long as you can make the mortgage payments while your wife is on mat leave then the bank really can't argue with that. Would appreciate you keeping us updated on how it goes please?

breaksman · 03-02-2021 4:12pm

BrosnanL27 wrote: »

You'll be fine then so don't worry. As long as you can make the mortgage payments while your wife is on mat leave then the bank really can't argue with that. Would appreciate you keeping us updated on how it goes please?

Thanks, will indeed

Trish56 · 03-02-2021 4:47pm

Unfortunately the bank won't look at your application as in 'you can make your repayments while on maternity leave'. The mortgage application would be for a term up to 35 years and would be approved on the basis of income, permanency of employment, any short term loans you would have, monthly net disposal income and repayment capacity over the term of the mortgage. A married couple would need to have €2050 net monthly income after stressed monthly mortgage repayments and any short term loan repayments and €250 is added for each dependent. Once the OP can prove continuity of employment while on maternity leave and that their net monthly income is €2300 to include the new dependent.

BrosnanL27 wrote: »

You'll be fine then so don't worry. As long as you can make the mortgage payments while your wife is on mat leave then the bank really can't argue with that. Would appreciate you keeping us updated on how it goes please?

BrosnanL27 · 03-02-2021 7:19pm

Trish56 wrote: »

Unfortunately the bank won't look at your application as in 'you can make your repayments while on maternity leave'. The mortgage application would be for a term up to 35 years and would be approved on the basis of income, permanency of employment, any short term loans you would have, monthly net disposal income and repayment capacity over the term of the mortgage. A married couple would need to have €2050 net monthly income after stressed monthly mortgage repayments and any short term loan repayments and €250 is added for each dependent. Once the OP can prove continuity of employment while on maternity leave and that their net monthly income is €2300 to include the new dependent.

Thanks Trish for explaining - really good to know

catrionanic · 03-02-2021 8:33pm

We drew down whilst I was on mat leave in 2018. Ulster Bank. They didn't ask for payslips again so we never had to broach the Issue!

Blaa.boy · 29-08-2021 3:31pm

https://www.boards.ie/discussion/comment/116141272#Comment_116141272

Hi just wondering how did this fair out with ptsb? Hope it worked out for you we re in exact same situation.

BrosnanL27 · 29-08-2021 11:09pm

https://www.boards.ie/discussion/comment/117819135#Comment_117819135

Hey we drew down with no issues! All they asked for was a letter from my employer stating my return date and that I will be going back to the same position and salary. I thought it was going to cause alot more hassle than it did in the end thankfully! Best of luck!

amdublin · 06-09-2021 8:09pm

https://www.boards.ie/discussion/comment/116155902#Comment_116155902

Pre covid...

Mortgage lending rules change all the time. Your experience in 2018 is out of date/not relevant now (crazy I know)

catrionanic · 10-09-2021 5:17pm

https://www.boards.ie/discussion/comment/117855410#Comment_117855410

And you replying to posts from 7 months ago is bang on point!

amdublin · 12-09-2021 7:06pm

https://www.boards.ie/discussion/comment/117873422#Comment_117873422

I didn't even see the date when you posted! I just assumed I was in a current thread based on it being at the top of the forum etc. Oh well! Point stands. Mortgage lending rules change constantly :(

selfbuilder22 · 13-09-2023 11:58am

Hi, I know this thread is old but bumping it as I am going to be in similar situation,it is likely that we will start our build either just before or shortly after I go out on my 6 months paid mat leave in March,I plan on taking 5 months unpaid mat leave afterwards- do AIB allow you draw down stage payments while on the unpaid part of mat leave?!

Thanks in advance

@breaksman how did ye fair out at the time?

Mortgage draw down during Maternity leave

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