Getting a mortgage while on maternity leave

Getting a mortgage while on maternity leave can be daunting, and most lenders won’t approve your application because you are not working. However, there are ways to get around this problem. You may need to take time off work but if you do, then you will have the opportunity to prove that you are able to support yourself financially during your absence from work. Here in this article, we will help you to get a mortgage when on maternity leave.

There are times in our lives when everything seems to be happening at once – or at least one major event follows closely on the heels of another. In this article, we will answer frequently asked questions such as can I get a mortgage on maternity leave, how to get a mortgage on maternity leave, which mortgage lender will approve my application during maternity leave, how to apply for a mortgage on maternity leave etc.


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Mortgage Success for Moms: How to Get Approved on Maternity Leave

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Damian Youell

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What is maternity leave?

Maternity leave is a period of time that a woman can take off work when she’s pregnant or has recently given birth. It’s designed to give new mothers the opportunity to recover from childbirth and to bond with their new baby. In the UK, eligible employees are entitled to up to 52 weeks of maternity leave. However, it’s important to note that not all employees are eligible for maternity leave – for example, if you’re self-employed, you won’t be entitled to maternity leave.

During maternity leave, you may be entitled to some pay from your employer. Your pay will depend on your employment contract and how long you’ve been working for your employer. You may also be eligible for Statutory Maternity Pay (SMP) from the government, which is currently set at £151.20 per week (as of September 2021).

It’s worth noting that taking maternity leave can impact your finances, particularly if you’re relying on your regular income to pay bills or mortgage repayments. If you’re planning to take maternity leave and you’re worried about your finances, it’s important to plan ahead and make sure you have a financial safety net in place.

In the next section, we’ll take a look at how taking maternity leave can affect your ability to get a mortgage, and what you can do to improve your chances of being approved.

Is it possible to get a mortgage on maternity leave?

The short answer is yes, it is possible to get a mortgage while you’re on maternity leave in the UK. However, it can be more difficult to get approved for a mortgage when you’re not earning your regular income, which can make it harder to meet the lender’s affordability criteria.

When you apply for a mortgage, lenders will typically look at your income and outgoings to assess whether you can afford to make the repayments. If you’re on maternity leave, your income may be reduced, affecting your ability to meet the lender’s affordability criteria.

However, there are things you can do to improve your chances of getting approved for a mortgage while you’re on maternity leave. For example, you could:

  • Use your savings: If you have savings that you can use to make a larger deposit, this could help you to secure a better mortgage deal.

  • Wait until you return to work: If you’re planning to return to work soon, it might be worth waiting until you’re back at work before applying for a mortgage. This will give you a better chance of meeting the lender’s affordability criteria.

  • Get a guarantor: If you have a family member or friend who’s willing to act as a guarantor for your mortgage, this could help to improve your chances of getting approved.

  • Speak to a mortgage advisor: A mortgage advisor can give you personalised advice on how to improve your chances of getting approved for a mortgage while you’re on maternity leave.

Overall, while it can be more difficult to get a mortgage while you’re on maternity leave, it’s definitely possible. By taking the right steps and seeking professional advice, you can increase your chances of getting approved for a mortgage and buying your dream home.

What are the requirements for getting a mortgage while on maternity leave?

If you’re on maternity leave and looking to get a mortgage, there are a few things you should keep in mind. While being on maternity leave can make things a little more complicated, it doesn’t necessarily mean you won’t be able to get a mortgage. Here are some requirements you should know about:

You’ll need to have a steady income

One of the key things that mortgage lenders will look at is your income. If you’re on maternity leave, you may not be earning as much as you normally would, but you should still be able to demonstrate that you have a steady income. This might mean providing your lender with your payslips from before you went on leave, or showing them that you’ll be returning to work soon.

You’ll need to have a good credit score

Your credit score is another important factor that lenders will consider when deciding whether or not to give you a mortgage. Make sure you’re up to date on all of your bills and payments, and try to keep your credit utilization low. You can check your credit score for free online, so it’s worth doing this before you start applying for a mortgage. 

You’ll need to have a sizeable deposit

Having a sizeable deposit can help improve your chances of getting a mortgage, as it shows the lender that you’re financially responsible and able to save money. Ideally, you should aim to save up at least 5-10% of the property value, although the more you can save, the better.

You may need to provide additional documentation: 

Depending on the lender you’re working with, you may need to provide additional documentation to prove your income and employment status. This could include things like letters from your employer or your bank statements.

Overall, getting a mortgage while on maternity leave can be a little more challenging, but it’s definitely not impossible. Just make sure you have a steady income, a good credit score, a sizeable deposit, and be prepared to provide any additional documentation that your lender may require. Good luck!


Can I get a mortgage while on maternity leave?

Mortgage lenders may be in something of an ethical quandary when it comes to an application and getting a mortgage while pregnant.

On the one hand – as an article in the Guardian newspaper points out – they are not entitled to ask whether you are pregnant or on maternity or paternity leave, since this risks breaching the discrimination provisions of the Equality Act 2010. But , on the other hand, any lender has a clear, necessary and perfectly reasonable duty to consider the affordability of any mortgage advance that is granted – and that means an assessment of your ongoing income and ability to maintain mortgage repayments throughout the term of the loan.

Explain your circumstances to the mortgage lender

Since you are going to be asked about your income now and in the immediate future, the onus is on you to tell any mortgage lender that you are pregnant or currently on maternity or parental leave.

It is in your interests to do so honestly, since, if it turns out that the mortgage advance is beyond your current financial means and you miss monthly repayments, you risk losing the very home which you were hoping to buy for you and your new family. It is critical, therefore, that you explain your personal circumstances to any prospective mortgage lender.

The result is that whilst there is no reason at all in principle why you should not get a mortgage while on maternity or parental leave, in practice, it may prove a little more difficult than at other times – depending on the security of evidence you are able to provide about your income.

What is taken into account for Mortgage on Maternity Leave?

Just as with any other mortgage application, a lender wants to know not just about your current income and earnings, but also how these might be affected by future events – such as the fact that you are currently on maternity or parental leave and that within several months or so, your income needs to take in another mouth to feed and small person to care for.

Expect different lenders to approach this question in different ways. Inevitably, most are going to appreciate that during the year in which you are taking maternity or paternity leave your income may reduce appreciably (unless you are amongst the lucky few who qualify for fully-paid maternity leave).

If your regular salary is, say, £30,000 a year, then during the period of your maternity leave, that annual salary might reduce to just £15,000. Any maternity leave mortgage you are offered might therefore be based on a salary of only £15,000 rather than the normal £30,000. The affordability check reduces the size of the mortgage on maternity leave you may be offered and the home you had your eyes on is no longer within reach.

Other mortgage lenders, however, may still be prepared to take the normal £30,000 annual salary as the basis of your steady earnings – provided you are able to show sufficient evidence of:

  • your employer’s confirmation of the job you will be returning to after maternity or parental leave;
  • confirmation of the date of your return to work; and
  • confirmation from your employer that you will be earning at least the amount you earned before going on maternity or parental leave.

It is always good to contact a mortgage broker before starting your maternity leave mortgage application from any building society or bank.

How to differentiate between maternity leave & paternity leave?

It makes no difference at all to a mortgage lender whether the income-earner is on maternity or paternity leave – including those joint applications made by both parents, one or both of whom might be taking maternity and paternity leave at various times in the near future.

The lender’s interest is solely in any effect on your respective earning levels for the duration of any maternity and/or paternity leave.

Once again, it is in your own interests to be as honest and as forthcoming about these personal circumstances with any prospective mortgage lender.


Can I get a loan if I am self-employed and on maternity leave?

If you are self-employed, of course, there is no employer to confirm your return to work, the job that is being held open for you and the income level you may be assured to receive when you return to work.

Once again, any mortgage lender needs to test the mortgage affordability of any advance and, in this case, that means weighing up the likely impact of your absence from the business during maternity or parental leave.

If your presence is practically indispensable to the continued operation of the business, for example, your absence is a critical loss and you are likely to find it difficult to raise a mortgage. However, if alternative arrangements are made for others to assume your responsibilities in the interim and the business operates normally whilst you are away, then the chances of your application succeeding are enhanced.

Read in detail about a self-employed mortgage on our website.

How much amount can I borrow on maternity leave?

The amount you can borrow if you are pregnant or on maternity leave depends on a host of considerations that may differ from one lender to another – your income level, of course, whether you are applying for a joint mortgage with two incomes to be taken into account, the multiple of your sole or joint salaries that a lender is prepared to offer, your credit history and the size of the deposit you have available.

Your additional outgoings – on childcare costs, for example – following the birth of your child may also be taken into account.

Some building societies or banks, for example, may be prepared to base any offer on 100% of the salary you are earning before taking maternity or parental leave, whilst others may base the calculation on only 50% of that normal income level.

Some lender’s policies may lead to mortgage offers reflecting just three times your income level, whilst others may offer up to three and a half times that level, and some may even extend the amount to up to five times your income.

A good credit score is also important for your mortgage application, you can check your current credit score at Credit Report Checker.

Next steps

Whether you are pregnant, on maternity or paternity leave, and whether you are normally in employment or are self-employed, any lender’s concerns remain exactly the same – how are your earnings impacted by your pregnancy or leave of absence from work, when will you return, and at what income level.

But there is little escaping the fact that these calculations are less than straightforward and that different lenders have policies that may significantly impact on your loan options.

Damian Youell

Feel Free To Start WhatsApp Chat With Us...

How We Work

1: We contact you and take down your details, income outgoings, name, address etc.

2: We will research the whole market and email you a detailed quote as well as a list of documents to proceed.

3: You upload the documents and information needed via our channel our online portal.

Feel Free to Contact Us

FAQs – Mortgage on Maternity Leave

How can pregnancy affect loan affordability?

It is an important affordability question for everyone who is about to start applying for loans. Different mortgage affordability rules apply for loans on maternity leave. To know further, you can either read the article or contact one of our mortgage advisors for financial advice.

What is statutory maternity pay(SMP)?

Statutory maternity pay is paid to women during their period of maternity leave. It is usually around 80 per cent of average weekly earnings. Statutory maternity is a type of benefits that you can get while working in the UK.

What to expect when you’re applying for a loan while pregnant

When you are expecting your first child, the process of buying or refinancing a home is likely to take longer than usual. As a result, you may need more time to save money for down payment funds, as well as additional documentation from lenders that will help them determine whether they should approve your loan application. It would help if you also considered childcare costs along with other charges.

The good news? There’s no reason why you shouldn’t buy a home during pregnancy! In fact, there are many benefits to purchasing a property before becoming a parent. If you are interested, you can connect with any of our mortgage advisors at Ltd for a suitable mortgage product.

I need a loan, does maternity leave matter?

Banks have rejected mortgage applications from people in their first year of motherhood because they believe these applicants may not afford repayments after returning to work. However, this isn’t always true – if you apply early enough, before six months into your pregnancy, you should still qualify for a loan. The key thing here is to ensure you get pre-approval, so you know exactly what you’re getting yourself into. You can always take help from a known mortgage advisor before starting your application, who can later help you grab a better mortgage deal.

Maternity leave mortgage: What are the difficulties?

The first thing most new mums think about after giving birth is buying their dream home. But if they’re planning to have children while doing so, there are several complications involved. The mortgage affordability criteria vary from lender to lender, so it’s better to contact a mortgage advisor who can help you with your mortgage during maternity leave.

Do I need to tell my mortgage lender I’m pregnant?

If you want to purchase a house, then it is essential to inform your bank/lender about your pregnancy. They might ask some questions like how long you plan to stay away from work, etc. So make sure you answer all those questions honestly. Also, don’t forget to mention that you are going through pregnancy. This way you won’t face any problems later. Mortgage during maternity leave comes with its challenges, it’s better to consult for a bit of financial advice before starting the loan application.

Can you get a home loan while on maternity leave?

Yes, you can get a home loan while on maternity leave but may need to contact for a piece of financial advice. A market advisor will be able to give you an idea of what kind of loan you can get and how much you can borrow.

How do I find out if I am eligible for a mortgage during maternity leave?

You can check if you are eligible for a mortgage during your maternity leave by contacting a reputable mortgage advisor. He/she will guide you through the whole process and help you choose the best mortgage deal as per your affordability assessment.

About The Author

mortgage broker damian youell

See some of Damian’s client reviews below

Damian is an experienced mortgage broker, founder of Ltd and company director. With over a decade working as a mortgage broker he has a strong understanding of hard to place mortgage cases. With hundreds of 5 star client reviews. hundreds of repeat clients his work speaks for himself.

He started as a one man band with the philosophy of putting clients needs ahead of his own. This ethos of offering excellent customer service has helped the business grow over the years. He gets satisfaction on getting cases pushed through to offer stage where other mortgage broker and companies have failed.

Throughout his time as an adviser he has carved out a niche area of advice helping clients with their business protection requirements too. Having helped hundreds of client with Relevant Life Policies, Shareholder Protection Insurance, Keyperson Policies and other important protection requirements of large to small businesses.

At home he is a family man and likes to spend his time with his four children and wife Lisa. He enjoys going on holidays spending time with friends and going for walks.

FAQs – Mortgage while on Maternity Leave2022-04-08T08:08:22+00:00

Additional FAQs- Mortgage on Maternity Leave

Does being on maternity leave affect applying for a mortgage?

Yes, maternity leave could affect getting a mortgage in the UK. Mortgage lenders will look at your income and check your affordability to pay the monthly payments. Some lenders will also be interested in knowing your expenses in child care costs. So, overall, it’s not easy to get a mortgage on maternity leave with child care costs and other regular expenses. The best thing that you can do is to contact a known mortgage broker who can help you with your mortgage application.

Maternity leave mortgages: what are the difficulties?

There are many implications of maternity leave on your mortgage application, one of these is reduced income as compared to your normal salary per month. Even if you apply for a mortgage while on a normal salary and just after that you, goes on maternity leave, it is likely to affect your loan application. Mortgage providers will access your affordability assessment based on your maternity leave income. There are also some other difficulties such as bad credit mortgage on maternity leave. It is always better to contact an expert about maternity leave mortgages.

Can I get a mortgage on maternity leave with a poor credit score?

It’s always difficult to get a loan with a bad credit history because mortgage providers think that you may not be able to pay the monthly repayments of your mortgage payments.  Bad credit limits you with the total number of mortgage products that you can use, so its always better to consult an impartial mortgage broker to help you with your loan application with bad credit.

Can I get a maternity leave mortgage if I am self-employed?

Yes, you can always get a maternity self-employed mortgage but you need to have good business records to prove your earnings. You should also keep track of your expenses and show them along with your tax returns. If you are self-employed, then you must submit your annual accounts to the lender. You can read more about Self Employed mortgages.

How much time does it take to get a mortgage on Maternity Leave?

It takes around 1 week or 2 weeks to complete the process of getting a mortgage on maternity leave. However, there are certain things that you need to prepare before you start the application. These include;

1) Your employment details – this includes your current employer, expected date of return to work, expected duration of maternity leave, etc.

2) Income proof – this includes your last 3 months’ payslips, bank statements, etc.

3) Loan documents – this includes all the relevant information about your finances like your savings account, investments, etc.

4) Proof of address – this includes utility bills, rent agreement, etc.

5) Other documents – this includes birth certificates, medical certificates, etc.

6) Bank statement – this includes any outstanding loans or debts.

7) Tax Returns – this includes your last 6 months’ tax returns.

8) Any additional documents required by the lender.

Read about family mortgages on our website.

Will maternity leave impact joint mortgages?

Yes, maternity leave could also impact the joint mortgages. When you apply for a joint mortgage, the income of both partners is considered for mortgage affordability check.  In some cases if your partner earns enough to pay the monthly mortgage repayments without using your reduced maternity leave mortgages, you may get a loan. But if your are partner is not earning enough and you are also on a maternity leave income, your application may get rejected. Its always better to contact the mortgage broker to apply on your behalf.

Read more about Joint Mortgages on our blog.

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About the Author:

Company Director and Ltd. Experienced mortgage broker offering advice and help to many hundreds of clients. Takes pride in getting hard to get agreed mortgages agreed for clients and often gets mortgage offers agreed where other brokers have failed. Also expert in business protection solutions such as relevant life policies, key person insurance and shareholder protection.

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