Can I get a mortgage when I’m on maternity leave?
Having a baby is a very exciting time and once your little one has arrived, you may be thinking about moving to a new house for more space. However, you may be concerned about whether or not you can get a mortgage if you’re on maternity or paternal leave.
The answer is simple, yes it’s possible to get a mortgage whilst you’re on maternity leave but knowing which lenders to approach is important. Some lenders won’t lend to applicants who are on maternity leave whilst some may request more evidence to support your application.
How can maternity leave affect a mortgage application?
Maternity leave affects mortgage applications because many lenders assume the applications’ income will decrease when they go on maternity leave.
In many cases, when someone goes onto maternity, they will have a decrease in pay – whether that be for a short time or for the whole time that you’re away from work.
There are some lenders who will be more than happy to consider your full salary even if you’re on maternity leave at the time of your mortgage application, whilst many would calculate the repayments you can afford based on what your salary will be when you return to work.
What if I’m going back to work part time?
If you decide to go back to work part time then most lenders will only be able to offer you a mortgage based on your new monthly income. You’ll be treated as a part time employee however that isn’t an issue when getting a mortgage as lenders look at your income not the number of hours that you work.
What will a lender ask for?
A lender may ask for more details about your income and what your plans are once your maternity leave is over (e.g. part time or reduced hours).
They may also ask about your future outgoings such as future childcare costs. The reason why they ask is to ensure that the mortgage repayments are affordable for you.
Some lenders will ask for evidence from an employer such as a letter verifying return to work income details, date of return and working hours (reduced hours or if you’re returning to the same hours from before your leave) latest pre-leave payslips and latest payslips.
Lenders vary so some may ask for more supporting documents or may request different evidence.
What are the benefits of using a mortgage broker?
The benefits of using a mortgage broker like ourselves is that we have extensive knowledge of the panel of lenders and products that are available. We may be able to recommend a suitable lender for your circumstances plus, we’ll do all the hard work on your behalf taking the stress away from you.
Get in touch with our team on 01270 443510 or 020 3984 0375 to discuss all your requirements. Alternatively, complete our contact us form and a member of our team will be in touch with you as soon as possible.