Sneaky move by our bank

[nzsq]

We recently sold our property and were looking to buy another so were getting approval from our bank to get another mortgage. I'm on a salary and my husband is self-employed. We've never had an issue with borrowing before and things were looking great with our application and we were open-homing with gusto.

Then we get a call from our broker - the bank found a couple of transactions on my account with the reference "antenatal" in them and have decided that because I'm pregnant that my salary no longer counts and they are declining our mortgage application.

Does this ring of being pretty darn sneaky to you guys?

What annoys me is that they didn't even ask what the situation was - when I was due etc. For all they knew, I was going straight back to work. But they've just assumed & declined.

I'd be interested to hear if anyone else has had a similar situation with their bank.

[speights boy]

What does your contract say regarding your disclosure obligations to the bank ?

[Davo36]

Oh man.

Not sure if I consider it sneaky of them or just them doing their job. After all, that income will be going and you guys hadn't told them that.

Either way, don't borrow more than you can easily pay back is my advice, you don't want to be in a position with a young baby to look after, getting little sleep AND worrying about your finances.

All the best.

[nzsq]

Yes "some" income is going but definitely not more than we can handle! We are definitely realistic about what funds we will have coming in over the next few months. I just wish they'd talked to us first to understand our position.

Do you have to disclose a pregnancy to your bank? What about if we hadn't been selling/buying but still continuing merrily along with our mortgage payments?

[speights boy]

Do you have to disclose a pregnancy to your bank?

I would be surprised if there wasn't a clause along the lines of needing to 'disclosure any change in financial circumstances in the foreseeable future.'

Yes "some" income is going but definitely not more than we can handle!

That's good, but really that's the banks' job to decide.

I just wish they'd talked to us first to understand our position.

Yes, agreed; but perhaps they are thinking the same about you.
Restarting communications with the revised data may bring the result you are after.

[Leftette]

I can see it from the bank's pov but they've got an effing cheek. I'm pretty sure the media would love this story and the bank would NOT like the negative press. It's borderline acceptable behaviour, imo, reeking of being anti-mother, anti-family, anti-baby. It's similar to the law that says employers are NOT ALLOWED to ask prospective female employees if they plan on getting pregnant anytime soon.

Yes, it's sneaky. And it was wrong to assume you were pregnant without asking. What if you were paying for your pregnant sister's classes?

[John the builder]

maybe instead of security boxes they are going to come out with chasity belts and the manager holds the key. This is a bloody cheek and an invasion of privacy. They should have at least had the decency to have a discussion.

We should be encouraging families not making pregnancy's a crimininal offence.

Name the Bank?

[speights boy]

We should be encouraging families not making pregnancy's a crimininal offence.

However the bank has a responsibility that a family does not borrow too much.
For that calculation, they need accurate income figures, and updated expenses when circumstances have changed.

I agree, the bank should have discussed; however communication is a two way street.

[John the builder]

so if you feel a cold coming on you must ring the bank?

Come on, having a baby these days with all the leave and flexible employers and the like is not the issue it once was. This country needs more of these good parents looking to provide for their family.

[speights boy]

so if you feel a cold coming on you must ring the bank?

I gather this was a new mortgage application procedure.
If it was; you obviously believe this was not relevant information to be disclosed.
I think it should have been.

A new application is looked at far more closely than an existing one which is ticking along without any issues.
That is what may have happened here.

[PTWhatAGreatForum]

Then we get a call from our broker - the bank found a couple of transactions on my account with the reference "antenatal" in them and have decided that because I'm pregnant that my salary no longer counts and they are declining our mortgage application.

Does this ring of being pretty darn sneaky to you guys?

I'm sorry, that sucks.

Welcome to the real world, unfortunately. It is nigh on impossible to convince most people of the sort who hang out here what banks are like until they see something first hand or even better experience it themselves.

I'd believe your story. Now to wait for the skeptics and unbelievers who love banks (all that easy money to pump into residential property empires) to come along with excuses.

It's borderline acceptable behaviour, imo, reeking of being anti-mother, anti-family, anti-baby.

It's disgusting when people get treated like this for doing an important job (having children).

[Leftette]

Have you even read the responses, Mikey?

No one so far as sided with the banks. A few have understood their position, but all have said it was, at a minimum, very poor communication/assumptions on the bank's part.

[PTWhatAGreatForum]

Have you even read the responses, Mikey?

No one so far as sided with the banks. A few have understood their position, but all have said it was, at a minimum, very poor communication/assumptions on the bank's part.

Of course I have. It's not a totally-literal statement, instead a figurative reference to the love of banks shown in the actions of many present here.

[Leftette]

I love HSBC. I really hope it ain't them or I'll be having a stern word with my personal banker (over a coffee in their lovely secure lounge area away from the proles).

[Perry]

So if you feel a cold coming on you must ring the bank?

Nah - you go and ask to see the lending people, then get a fit of the sneezes!

. . . with all the leave and flexible employers and the like is not the issue it once was.

That was my thought, too. What's the present situation with paid maternity leave, anyway?