Can You Get a Mortgage When on Maternity Leave?
Yes, you can get a mortgage while you’re on maternity or paternity leave, whether you’re applying for the first time or looking to remortgage. Lenders can’t refuse a mortgage application purely because you’re currently on maternity leave, but they will want to understand your income, return date, and your household’s overall affordability before making their decision. This article explains how lenders assess a mortgage for someone on maternity leave and the options available, and shows how Eden Hawk can help you find the most suitable mortgage for your circumstances.
Maternity leave can feel like an odd time to be thinking about a mortgage, but it needn’t put your plans on hold. Lenders are legally required to treat applicants on maternity, paternity or adoption leave fairly, and if you’re on maternity leave in the UK right now, most have clear policies for assessing affordability during this period rather than turning applications away.
How Do Lenders Assess Income During Maternity Leave?
Most lenders assess affordability by taking your pre-maternity income into account, provided you intend to return to work in a similar role and similar hours. Some lenders assess income during maternity leave more cautiously, focusing on statutory maternity pay or a drop in income if your return date isn’t yet confirmed. A letter from your employer confirming your salary, return date and any reduced hours can strengthen your mortgage application.
Statutory Maternity Pay, Shared Parental Leave and Your Mortgage Application
If you’re taking shared parental leave, or your partner is, lenders will usually look at whichever income is higher, especially if one partner continues on full salary. Statutory maternity pay is lower than most people’s usual earnings, so many lenders ask for evidence of your normal salary and your employer’s maternity policy before progressing a mortgage application.
Maternity and Paternity Leave: Does It Make a Difference?
Whether you’re on maternity and paternity leave, the underlying question for a lender is the same: what will your household income look like once you’re back at work? For couples, business and employment income are often assessed together, particularly where one partner is self-employed and the other is on leave, so your maternity income doesn’t need to carry the whole application alone.
How to Apply for a Mortgage While on Maternity Leave
To apply for a mortgage while on maternity leave, gather payslips from before your leave started, your maternity pay schedule, and a letter confirming the date you expect to return to work. Speaking to a broker early, ideally once you’ve found a property, means your mortgage application while you’re on maternity leave goes to a lender likely to accept it.
Full Salary, Reduced Hours and Your Return to Work
Some employers continue full salary for a fixed period, which makes an affordability assessment easier. Others confirm reduced hours or a phased return, and lenders may assess this differently depending on your working patterns and whether childcare is already arranged.
Does Maternity Leave Affect Your Mortgage?
It doesn’t automatically affect your mortgage eligibility. What matters most is whether a lender’s affordability checks show your household can manage mortgage repayments and everyday outgoings, including childcare, once your maternity pay ends.
Does Maternity Leave Affect Remortgaging?
The good news is a range of lenders will still consider applications from people on maternity leave, especially if you’re not borrowing more or moving away from your current lender’s standard variable rate significantly.
A remortgage while on maternity leave usually follows the same affordability calculations as a new purchase, though some lenders will assess affordability based on your pre-maternity income if you plan to return to work on the same conditions. Speak to an adviser who knows which lenders take this approach, so a straightforward switch doesn’t turn into a drawn-out one.
Mortgage Options and Using a Mortgage Broker
Understanding your mortgage options early is the best way to avoid disappointment. Using a mortgage broker means you’re not limited to the high street names that may decline a maternity leave application outright; a mortgage broker can identify a suitable mortgage even when your income looks unusual on paper. Every lender’s criteria are slightly different, which is why advice from a broker can save weeks of speculative applications.
Why Speak to an Adviser About Borrowing
It’s worth getting mortgage advice before you apply, since an adviser can compare mortgages available across the whole market rather than one lender’s range. Getting mortgage advice early also means you’ll know how much you can borrow before you start viewing properties and can budget realistically for childcare and other new costs.
How Eden Hawk Can Help You Get a Mortgage on Maternity Leave
At Eden Hawk, we regularly help clients get a mortgage on maternity leave, from first-time buyers or home movers to those who want to remortgage before their current deal ends. We work with a wide range of lenders, including several who take a flexible view of maternity pay and reduced hours, and our mortgage advice is fee-free from start to finish. If you’re currently on maternity leave and thinking about your next mortgage, speak to Eden Hawk today.