First direct advises parents to compare mortgages

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Tuesday 17th October 2006

Online bank first direct has told new parents to compare mortgages before taking time out for their baby.

Maternity leave allows for nine months to be taken off work; six weeks at 90 per cent of the mothers usual salary, followed by the rest at a statutory £108.85 weekly.

However, the bank cites research by the Department of Work and Pensions, which found that many mothers cannot afford mortgage repayments on the statutory income.

Chris Pilling, chief executive of first direct, said: "Having a child can be an expensive time, especially if parents are losing part of their regular monthly income through leave."

"A flexible mortgage puts you in control of the decision to return to work instead of bills making that decision for you," he added.

Mr Pilling pointed out that there are a variety of reasons why borrowers might need a break from their mortgage repayments, such as a career change, redundancy or extended holiday.

Flexible mortgages allow borrowers to decide when and how to pay back what they owe. Early overpayments can reduce the amount of interest owed, while allowing for lower repayments in times of hardship.

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