Can You Get a Mortgage on Maternity or Paternity Leave?
Yes, you can get a mortgage while you are on maternity leave, paternity leave or shared parental leave.
Being on parental leave does not automatically prevent you from getting a mortgage. The main issue for the lender is whether the mortgage will remain affordable based on your income, your planned return to work and your other financial commitments.
Some lenders can use your expected return-to-work income rather than relying solely on the reduced income you receive while on leave. The evidence required and the way your income is assessed varies between lenders.
This means the lender chosen can make a significant difference, particularly if your current income has temporarily reduced or you plan to return to work on different hours.
Worried Maternity or Paternity Leave Could Affect Your Mortgage?
Many applicants worry that temporarily receiving a lower income while on parental leave will automatically stop them getting a mortgage. In reality, some lenders can consider your expected return-to-work income where suitable evidence is available.
At Kerr & Watson, we can review your current income, return-to-work plans, childcare costs and overall circumstances before identifying lenders whose criteria may be suitable.
How Do Mortgage Lenders View Maternity and Paternity Leave?
A mortgage lender should not treat you unfavourably simply because you are pregnant or on maternity leave. However, it still has to assess whether the mortgage is affordable based on your individual circumstances.
This means the lender may need to understand how your income will change during and after parental leave rather than simply using the amount currently shown on your latest payslip.
When assessing your application, lenders will usually consider:
- Your current income
- Your expected income after returning to work
- Whether you will return to the same employer
- Any planned reduction in working hours
- Household income
- Childcare costs
- Existing financial commitments
- Your deposit and savings that will be available after completion
Parental leave is temporary, but where a lender is using your expected return-to-work income, it may require evidence to support your future salary and working arrangements.
What Evidence Might a Mortgage Lender Ask For?
The documents required vary between lenders, but applicants on maternity, paternity or other parental leave may be asked to provide more information about their current and future income.
| Evidence | Why the lender may ask for it |
|---|---|
| Latest payslip | Shows your current income while on parental leave |
| Payslip before parental leave | Can evidence your normal salary before your income reduced |
| Return-to-work date | Helps establish when your normal or revised income will resume |
| Return-to-work salary | Allows the lender to assess your expected future income |
| Planned working hours | Important if you intend to return part-time or on reduced hours |
| Employer confirmation | Some lenders require written confirmation of your return-to-work arrangements |
| Savings available during leave | May help demonstrate how any temporary reduction in income will be managed |
| Expected childcare costs | These may be included within the lender’s affordability assessment |
The exact requirements depend on the lender. In some cases, a payslip from before parental leave and confirmation of your return-to-work arrangements may be enough, while another lender may ask for further evidence.
Can I Apply for a Mortgage Before I Return From Maternity Leave?
Yes. You do not necessarily need to wait until you have returned to work before applying for a mortgage.
Some lenders can consider your expected return-to-work income while you are still on maternity or parental leave. They may ask for evidence confirming your expected return date, salary and working hours.
For example, if you normally earn £40,000 but are currently receiving reduced maternity pay, a lender may be able to assess your application using your expected £40,000 salary if you are returning on the same terms and meet its criteria.
If you intend to return on reduced hours or a lower salary, the lender will normally need to take the expected lower income into account.
Whether you should apply while on leave or wait until you have returned will therefore depend on your circumstances and the lenders available, rather than there being a general rule that you must already be back at work.
Can Lenders Use My Full Salary Instead of Maternity Pay?
Potentially, yes. Some lenders can use your expected return-to-work salary where they are satisfied with your return-to-work arrangements and the supporting evidence provided.
This is often possible when:
- You have a confirmed return-to-work date
- You are returning to the same employer
- You are returning to the same role
- Your salary will remain unchanged
- Your employer confirms the arrangements in writing
Using your expected return-to-work income rather than temporary maternity pay can affect the amount available under the lender’s affordability calculation.
For example, if your salary has temporarily reduced to Statutory Maternity Pay but you will return to a £40,000 salary in a few months, some lenders may assess affordability using the £40,000 income figure rather than your temporary maternity income.
Will I Need A Letter From My Employer?
Potentially. Some lenders will ask for written confirmation from your employer, particularly where they are using your expected return-to-work income.
Many lenders that use your return-to-work income will ask for written confirmation from your employer confirming:
- Your return-to-work date
- Your job title
- Whether you are returning full-time or part-time
- Your expected salary upon return
Having this information available early can help establish which lenders’ criteria your circumstances meet and what evidence will be needed for the application.
What If I Am Returning on Reduced Hours?
If you plan to return to work on reduced hours, the lender will need to understand what your income is expected to be after you return. Where your salary will reduce, affordability will generally need to reflect the income you realistically expect to receive.
For example:
- Full-time salary before leave: £45,000
- Planned return: Three days per week
- New salary: £27,000
Where you know that you will return on reduced hours, the lender will normally need to assess affordability using the income you realistically expect to receive after returning rather than your previous full-time salary. In this example £27,000.
Being upfront about your plans is essential. It is important that your mortgage application reflects your intended working arrangements so the lender can assess affordability using the correct future income.
Can I Get a Mortgage While Receiving Statutory Maternity Pay?
Receiving Statutory Maternity Pay does not automatically prevent you from getting a mortgage.
The lender may need to understand your lowest expected income during the leave period, when you intend to return to work and what your income will be after returning.
Where your temporary income is insufficient to cover normal expenditure, some lenders may also want to understand whether you have savings or another source of funds available during the leave period.
The lender will want to understand:
- How long the reduced income will continue
- What income you will receive after returning to work
- Whether you have savings to bridge any temporary income gap
- How affordable the mortgage will be during the leave period
Some lenders may assess affordability using maternity pay alone, while others may take your future salary into account. The lender’s criteria will often determine which approach is taken.
Can You Get A Mortgage While Pregnant?
Yes. Being pregnant does not prevent you from applying for or getting a mortgage.
Pregnancy itself should not be used as a reason to refuse a mortgage. However, where your income or expenditure is expected to change, the lender can take those changes into account when assessing affordability.
For example, if you expect to begin maternity leave before completion, the lender may need details of your maternity income, planned return-to-work arrangements and any expected childcare costs.
Giving your mortgage adviser accurate information about your plans allows the application to be assessed using a lender whose criteria fit your circumstances.
Does Paternity Leave Affect a Mortgage Application?
It can, particularly if your income is temporarily reduced while you are on leave.
The lender may want to understand:
- How long the leave will last
- Whether your income will reduce
- What income you will receive during the leave period
- When your normal income will resume
Where paternity or parental leave is short and normal earnings will resume afterwards, the lender may simply need enough information to understand the temporary change in household income.
The exact approach varies between lenders.
What If We Are Applying Jointly?
If one applicant is on maternity or paternity leave and the other remains in full-time employment, lenders will assess both incomes together.
The lender will assess both applicants’ eligible income alongside the household’s financial commitments and expected expenditure.
- Return-to-work plans
- Future childcare costs
- Household expenditure
- Long-term affordability
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What About Shared Parental Leave?
If you are taking shared parental leave, the lender will need to understand how the leave affects the household’s current and future income.
Lenders will look at:
- Which parent is taking leave
- How long the leave will last
- Future household income
- Planned return-to-work arrangements
- Childcare costs
If both applicants are taking leave simultaneously, lenders may carry out more detailed affordability assessments because household income may temporarily reduce more significantly.
Providing a clear explanation of your plans can help reassure the lender.
What If I Am Taking Adoption Leave?
If you are taking adoption leave, a lender may assess similar factors to other forms of parental leave, including your current income, expected return-to-work income and household expenditure.
They will usually consider:
- Current household income
- Planned return-to-work arrangements
- Future income
- Childcare costs
- Overall affordability
The key consideration remains whether the mortgage will be affordable both during the leave period and after returning to work.
How Much Can I Borrow While on Maternity Leave?
There is no single answer because every lender assesses affordability differently.
The amount you can borrow will depend on factors including:
Your Future Income
If a lender accepts your expected return-to-work salary, it may be able to use that income within its affordability calculation rather than relying solely on your temporary maternity income.
Childcare Costs
If you expect to pay for nursery, a childminder or other regular childcare after returning to work, the lender may include this expenditure in its affordability assessment.
The amount and treatment vary between lenders, so you should provide a realistic estimate of the costs you expect to have after returning to work.
Existing Commitments
Loans, credit cards, car finance and other commitments can reduce borrowing potential.
Deposit Size
A larger deposit can reduce the loan-to-value and may increase the range of mortgage products available. However, it does not replace the lender’s requirement to establish that the mortgage is affordable.
What Documents Will I Need?
The exact evidence required depends on the lender and your circumstances.
As well as standard mortgage documents such as payslips, bank statements and proof of deposit, a lender may ask for evidence of your parental-leave arrangements and future income.
This can include your pre-leave payslip, current maternity or parental-leave payslip, return-to-work date, expected salary and working hours.
See the evidence table earlier in this guide for the main information lenders may request.
Can You Remortgage While On Maternity Leave?
Yes. You can potentially remortgage while you are on maternity leave.
Many people remortgage while on maternity leave, particularly if a fixed rate is ending.
If you are completing a product transfer with your existing lender, a full affordability assessment may not always be required, depending on the lender and whether you are making other changes.
If you are remortgaging to a new lender or increasing the borrowing, the new lender will normally carry out an affordability assessment.
As with purchase applications, lenders may consider your future return-to-work income if sufficient evidence is available.
Should I Wait Until I Return to Work Before Applying for a Mortgage?
Not necessarily. Some lenders can consider a mortgage application while you are still on maternity or parental leave.
Whether it is better to apply now or wait until you have returned to work will depend on factors such as:
- Whether your return-to-work date is confirmed
- Your expected salary and working hours
- How long your income will remain temporarily reduced
- Whether you have savings available during the leave period
- Your expected childcare costs
- How much you need to borrow
- Which lenders’ criteria fit your circumstances
If your return-to-work arrangements are clear and can be evidenced, there may be no reason to delay an application simply because you are still on maternity leave.
However, if your future hours or income have not yet been agreed, waiting until these are confirmed could make it easier to establish affordability accurately.
How Can Kerr & Watson Help With a Mortgage During Maternity Leave?
We have helped customers review their mortgage options while on maternity leave, including cases where current payslips showed temporarily reduced income.
The important part of these applications is understanding the customer’s planned return to work, expected future income and any changes to working hours or childcare costs before selecting a lender.
By checking the lender’s parental-leave criteria before applying, we can establish what evidence will be required and whether the lender can use the customer’s expected return-to-work income.
Mortgage Case Studies for Maternity and Paternity Leave
The case studies below show real examples of customers we have helped with their mortgage while on maternity or paternity leave. They demonstrate how different circumstances, including temporarily reduced income and returning to work, can affect the options available.
Frequently Asked Questions About Mortgages During Maternity Leave
Does maternity leave affect a Mortgage in Principle?
It can affect the affordability information used for a Mortgage in Principle. You should provide accurate details about your current income and planned return to work so the lender or adviser can assess your circumstances correctly.
What if I become pregnant after receiving a mortgage offer?
If your circumstances change before completion and the change could affect your income or affordability, speak to your mortgage adviser. Whether the lender needs further information will depend on the circumstances and its requirements.
Can both applicants be on parental leave?
Potentially, yes. The lender will need to assess the household’s current and future income and how the mortgage and normal living costs will be managed during the period of reduced income.
Conclusion
Being on maternity leave, paternity leave or shared parental leave does not automatically prevent you from getting a mortgage.
The key issues are your expected return-to-work income, working hours, childcare costs and whether the mortgage remains affordable during and after your leave.
Different lenders have different requirements for parental-leave income and supporting evidence, so it can be important to check the lender’s criteria before applying.
Need Help Getting A Mortgage While On Maternity Or Paternity Leave?
At Kerr & Watson, we can review your circumstances, return-to-work plans and affordability before identifying mortgage options that may be suitable.
Speak to Kerr & Watson today for personalised mortgage advice tailored to your circumstances.
