Getting a mortgage on maternity leave

Being on maternity leave means you’ll likely have a lower income for a while. This can make things a little more difficult if you want to apply for a mortgage.

How does being on maternity leave affect applying for a mortgage?

As you go on maternity leave, your earnings for that year may fall. Some lenders won’t consider your full salary and may look at your maternity wage instead.

They could offer you a mortgage based on a varying percentage of this, while others won’t lend to you at all.

Proof of future income

To apply for a mortgage in general, you need to provide evidence of your finances. This is the same when you apply for a mortgage on maternity leave. The only difference is that you may have to present more proof.

You’ll need to have evidence that your income will increase again when you return to work and when that will be. Be as honest as possible with potential lenders about your situation. This will make it easier for them to offer you an accurate deal.

Mortgage lenders need to know that you earn enough to cover your loan. There are ways to prove you can afford to repay a mortgage if you provide evidence of:

Your partner’s wage.
When you’ll return to work.
How much your income will be when you go back to work.

What you could be asked for

Most lenders may ask for the following to show you can afford your mortgage:

Dates of when your maternity leave starts and ends.
Payslips for your full wage and maternity wage (if it has started).
Evidence of any savings you have.
Proof of any extra income sources.

What can help

You might find a bigger deposit makes getting a mortgage while on maternity leave easier. This is because it means you need to borrow less. Your repayments will be smaller and interest rates may be lower.

Buying with someone else could make getting a mortgage easier. Two wages towards a mortgage can reassure lenders that you can meet all repayments.

Handy to know

While paternity leave can also come with a period of lower income, it’s not usually as long as maternity leave and mortgage lenders don’t generally consider it.

Getting a mortgage with us

Our mortgage calculators could give you an idea of how much you could borrow and see how changes to your current income could affect your repayments.

Before you apply for a mortgage, you could get an Agreement in Principle (AIP) to give you a more accurate idea of how much you can borrow. It’s obligation-free and only involves a soft credit check, so there’s no impact on your credit score.

Once you’ve received an AIP and have an idea of what you can afford, you can then progress to a full mortgage application with a full credit check.

You could lose your home if you don’t keep up your mortgage repayments

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