Remortgaging is a hot trend that’s here to stay, as more and more consumers are beginning to realize the benefits of shopping around for a new mortgage. Although this is a process that has its own share of fees, there are some strong benefits of remortgage that just can’t be ignored. Yet if you have plans to go on maternity leave and enjoy your baby to be, a remortgaging deal might be problematic.
Lenders will want to make absolutely sure that you are going to be able to afford your mortgage payments. This is the case whether you’re working, not working, or raising a family. A contract is a contract is a contract, after all. As long as you’re meeting the terms of that contract, they don’t really care what you do. However, the more variables that you introduce into your life, the more that the lender will get nervous that you’re going to default on your payments. You just need to make sure that you’re looking carefully at the situation at hand.
Lenders will approve a remortgage as long as you meet the affordability requirements. But what happens when your wife goes on maternity leave and you are applying for the remortgage? You will need to go off of your salary over hers, or include the salary that she was receiving right when the application took place. If you’re in doubt of how to approach this, it’s important to bring it up with the lender. You have to go with the most honest numbers that you can. If your wife is going to be returning to work, a letter from your employer confirming the date she will return is critical. In addition to the date, the employer will also need to list the salary that your spouse will have when she finally returns to work, whenever that is. If her income is going to be less, they may end up not approving the remortgage at all.
The truth is that childrearing takes expenses of its very own. You need dot make sure that you’re really focusing on the best solutions possible for your family. Otherwise, you could end up facing a lot of problems in the long run. It’s better to make absolutely sure that you’re thinking about the bigger picture here. The remortgage can indeed go through, but you’re going to have to be pretty up front with your lender to make it happen.
Keep in mind that if you have to take someone’s name off the new mortgage, lenders do indeed charge you for the privilege. Well, we warned you that there are sneaky tricks in the remortgaging game, so just be careful!