Can I Get a Mortgage While on Maternity Leave from Work?
Sometimes, everything happens at once. If you're in the process of buying a property or moving home, and you or a partner goes onto maternity leave, the change in income can throw a spanner in the works.
While some lenders will outright reject an application without a guarantee your income will revert to previous levels, some are far more flexible with lending to new parents.
Here, the Revolution Brokers team explains how mortgages on maternity leave work and all the factors to consider. For more help progressing your mortgage application or finding a home loan while on maternity leave, give us a call on 0330 304 3040, or drop an email to [email protected].
Will a Mortgage Lender Approve Me While on Maternity Leave?
We can't guarantee your bank will approve you, but finding a loan while on leave is undoubtedly possible. Some lenders reject any applications of this type, but others have several options geared towards new parents.
The key is to use a whole-of-market broker to assess your circumstances and find the right lender to apply to.
Many high street banks are cautious about lending in this scenario because they assume that your income will immediately decrease. However, it depends on whether you receive occupational maternity pay, statutory pay only, or a combination of the two.
Other lenders will include your regular salary in all of their calculations, assuming that you will return to work after your leave.
Lenders will usually ask for a letter from your employer, confirming that you are expected to return to work and when that is presumed to be.
They might also ask for evidence of your employment terms to see whether you will still be working the same hours and earning the same salary. If not, they'll want to know how your income will change to make an informed assessment about your future affordability.
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2023-05-09 
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