Getting a mortgage while on maternity leave

Who is this page for?

If you’re welcoming a new baby to the family and you’re worried about being approved for a mortgage while on maternity or parental leave this page is for you. This is also the right place if you are adopting or on paternity leave.

Getting a mortgage while on maternity leave

Having a baby is an exciting time. For many, this can mean moving home to get more space.

If you’re looking to move while pregnant or with a child in tow, you may be wondering how this can affect applying for a mortgage.

It is possible to get a mortgage while on maternity leave or parental leave. But your lender may ask to see more details on your income once you return to work.

A lender will want to know about any changes you plan to make when you’re working again, for example if you take reduced hours or go part-time.

While you’re on maternity or parental leave, you’ll want to know that you can afford to repay the mortgage. Work out a new budget, taking into account any reduction in pay to understand this.

Does being on maternity leave affect applying for a mortgage?

Parental leave can affect your ability to get a mortgage. Lenders will look at your income after your maternity or parental leave is over to make sure you can afford to repay the mortgage.

They will also need to know about your outgoings after this period. These can go up due to childcare costs.

It’s important to be open with your lender if you are expecting a baby. You’ll need to provide information on how much you’ll earn when you return to work and details of any changes in your employment circumstances.

How to apply for a mortgage when on maternity leave

You can apply for a mortgage when on maternity or parental leave in a similar way to normal.

You may need to give a lender more information about your finances. This may include:

  • Your salary before you went on maternity leave
  • The date you will return to work
  • Evidence from your employer to confirm your income when you return
  • Any additional outgoings after the child is born. For example, childcare costs    

Childcare costs

It is also important to consider future childcare costs. This is because they could affect your ability to repay your mortgage.

Your lender may ask how you plan to cover childcare when you go back to work. For example, your lender may factor this into your monthly outgoings.

Self-employed mortgages on maternity leave

If you are self-employed, it may have an impact on your mortgage application. This will depend on how smoothly your business can run in your absence.

For instance, if your income won’t fall during this period, there may not be an issue. If your income will fall or stop completely, this is likely to affect your application.

You may be eligible for Maternity Allowance from the government during this period. Lenders will usually take this into account.

Joint Mortgages on maternity leave

If you and your partner are applying for a mortgage together, you may be able to get approved from their salary alone.

So, if your partner can afford the mortgage by themselves, it can offer you more options for when your parental leave is over. For example, you wouldn’t need to go back into full time work or could work reduced hours.

The content on this page is for reference and does not constitute finance advice.

For impartial financial advice, we recommend government bodies like the Money Advice Service.

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