Being on maternity leave does not automatically prevent you from getting a mortgage. The key question for lenders is usually whether the income being used in the affordability assessment is sustainable once your temporary period of reduced income is taken into account.
Lender approaches vary, so the right answer depends on your current pay, expected return-to-work income, childcare costs, deposit, credit profile and wider household finances.
Can I get a mortgage while on maternity leave?
Potentially, yes. Some lenders will consider your normal employed income where there is clear evidence that you intend to return to work and that the mortgage remains affordable during and after maternity leave.
Halifax currently states that where a customer expects a temporary reduction in income, including maternity leave, the adviser must be satisfied that the income used in the affordability assessment remains sustainable and that the customer can maintain the mortgage payments during the period of reduced income.
This means maternity leave is not automatically a reason for refusal, but the lender may want to understand both the temporary reduction and what happens when you return to work.
What income might a lender use?
That depends on the lender and the evidence available.
A lender may look at:
- your salary before maternity leave;
- the amount of statutory or enhanced maternity pay you are currently receiving;
- your intended return-to-work date;
- whether you are returning full-time or part-time;
- any employer confirmation of your expected salary on return; and
- the other applicant’s income where you are applying jointly.
MoneyHelper notes that mortgage lenders assess affordability using income, regular outgoings and employment security rather than simply looking at a headline salary figure.
Do I need a letter from my employer?
You may be asked for written evidence confirming your employment and return-to-work position, particularly where your current payslips show reduced maternity income rather than your normal salary.
Depending on the lender, useful evidence could include:
- a recent payslip from before maternity leave;
- current maternity-pay evidence;
- an employer letter confirming your normal salary;
- confirmation of your expected return date;
- confirmation of any agreed change to working hours; and
- recent bank statements.
What if I plan to return part-time?
Tell your broker and lender at the outset.
If you expect your income to reduce permanently because you are returning on fewer hours, it would not be appropriate to base the application on a full-time salary that you do not expect to receive.
The lender will normally need the affordability assessment to reflect the income that is realistically expected after your return.
What about childcare costs?
Future childcare costs can be important because they may materially affect affordability.
MoneyHelper explains that lenders assess regular household spending and known changes in circumstances when deciding how much can be borrowed. A lender may therefore want to take account of childcare costs that are expected to start once you return to work.
It is better to disclose these costs accurately rather than allowing an application to be assessed on a budget that will no longer be realistic after the baby arrives.
Can I apply before I return to work?
Potentially, yes. You do not always need to wait until you are physically back at work.
If the lender is satisfied with your employment, return-to-work plans and affordability, an application may still be possible while you are on leave.
The exact approach varies significantly between lenders, so checking criteria before making a full application is particularly important.
What if I am self-employed and taking maternity leave?
This can require a different assessment because there may not be a fixed salary to return to.
A lender may look at your business accounts, recent trading performance, how the business is operating during your leave and the level of income expected when you resume work.
If you are self-employed or a company director, our guide to mortgages for self-employed applicants and company directors may also be useful.
Should I delay the mortgage application?
Not automatically.
Waiting until you return to work may make the evidence simpler with some lenders, but it may not be necessary if your position is already clear and affordable. The right approach depends on your income, deposit, timing and the lenders whose criteria fit your circumstances.
How TLA Finance can help
TLA Finance can review mortgage applications where one applicant is on maternity, paternity or other family-related leave. We can look at your current pay, expected return-to-work income, future childcare costs, deposit, credit profile and wider affordability before considering suitable lender options.
Visit our mortgage services page or contact TLA Finance to discuss your circumstances.
Important: Mortgage availability and lender criteria can change. Your home may be repossessed if you do not keep up repayments on your mortgage. This article is general information and is not a personal mortgage recommendation.
