How does getting a mortgage on maternity leave work?
Reading time 6 minutes
At a glance:
A mortgage lender will want to know if you can repay a mortgage, now and in the future.
Going on maternity leave doesn’t mean you won’t be able to get a mortgage.
You may need to provide documents to prove what your income will be on maternity leave and when you return to work.
Can you get a mortgage while on maternity leave?
Being on maternity leave does not prevent someone from being accepted for a mortgage.
A mortgage lender will need to know that you can afford the monthly repayments.
If you’re on maternity leave, or going to be soon, your lender might want to know:
If you plan to return to work
When you plan to return
If your hours and salary will change
Your income before and during maternity leave
Any new regular bills after the baby is born, like childcare costs.
Salary after returning to work
If you are going on maternity leave soon, a lender will want to know what your salary will be when you return to work.
If your hours are reduced and pay lower, the lender will use that to understand if you can keep up to repayments.
If you are returning to the same salary as before your maternity leave, the lender will want to know.
What if you’re not sure yet?
If you don’t know what your situation is going to be when you return to work, be honest with your lender. Every lender is different and it may still be possible to get a mortgage without knowing exactly what your work situation will be.
Useful information for a lender if you’re applying for a mortgage on maternity leave
When deciding to offer a mortgage, a lender may want to see:
Recent payslips
Recent bank statements to show your outgoings
Evidence of how much your maternity pay will be
When you plan to return to work
What your salary will be after returning
Future childcare costs
How much your regular outgoings are.
If anything changes, it’s important to tell your lender. For example, if you plan on taking longer before going back to work, or you aren’t returning to work, your lender needs to know.
If you want help with your budget, use our budgeting calculator:
Getting a mortgage while self-employed on maternity leave
If you are usually self-employed and going onto maternity leave, you may need to provide extra documents to a lender. The kind of document you are asked for are often different, for example accounts information instead of payslips.
A lender may also want to see:
Recent income from your business
How your income will change during your maternity leave
What your plans are for the business during this period
Income after your return to work
Details of regular business expenses.
If you are confident that your business will keep maintaining the same income while you are on maternity leave, you’ll need to be able to provide evidence of this.
Does paternity leave impact applying for a mortgage?
A short period of paternity leave will not usually affect a mortgage application.
If you decide to use shared parental leave to take longer off to look after your family (or decide to change your hours and reduce your salary), you should let your current or future mortgage lender know.
The content on this page is for reference. It is not financial advice. For help with money issues, try MoneyHelper.
