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Getting a mortgage on maternity leave
Having a baby is an exciting time. For many, it can get you thinking you need more space. Or a space that’s more family friendly.
You can get a mortgage while you’re on maternity or parental leave. Like with any mortgage, you and your lender will want to know that you can afford the mortgage payments. But especially so if your situation is going to change.
Lenders will look at your income and outgoings during and after your leave
This is to make sure you can afford the mortgage payments. Your income may change if you decide to reduce your hours or go part-time or not return to work at all.
Your outgoings are more than likely to increase. Consider what your childcare costs will be. And will you want to start putting money aside in a child’s savings account?
Remember: Be open with your lender. Raising children can be stressful, and you don’t want added pressures of an unaffordable mortgage.
Self-employed mortgages on maternity leave
Being self-employed may affect your mortgage application. This will depend on how smoothly your business can run while you are off. If your income stays the same, there may not be an issue. But if your income falls or stops completely, this is likely to affect your application.
Joint mortgages on maternity leave
If you and your partner are applying for a mortgage together, you may be able to get approved on their salary alone. If your partner can afford to pay the mortgage, it can offer you more options for when your maternity leave ends. For example, you may not need to go back into full-time work or you could reduce your work hours.
Does being on parental or maternity leave affect applying for a mortgage?
Being on maternity or parental leave doesn’t change the way you apply for a mortgage. But you may need to give a lender more information about your finances.
Such as:
- Your salary before you went on maternity leave.
- Evidence of income during your leave.
- The date you’ll return to work.
- Evidence from your employer to confirm your income when you return.
- Any extra outgoings, like childcare costs. And how you’ll cover these.
Good to know
You may be entitled to Maternity Allowance from the government. Lenders will usually take this into account.
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