Is it possible to get a mortgage whilst on maternity leave and still include my income?
As many couples think about moving to larger homes when their family starts to grow, they regularly ask if it is possible to get a mortgage when on maternity leave.
The simple answer is yes for almost all circumstances. However, there are lots of considerations and lenders do vary in the way they calculate affordability during this time.
Some lenders will use only the income during maternity leave in their affordability calculation, which usually results in low maximum loans.
However, other lenders will use the ‘usual’ salary or the ‘return to work’ salary in the calculation if a return to work is within the next few months.
If your return to work is much later, there may still be one or two lenders who will consider the application under these terms.
For evidence, lenders may request a letter from the client confirming the ‘usual’ salary and the current income.
They often request a letter from employers to confirm the return to work date, future terms such as changes to hours, and ‘return to work’ salary.
It will be important that mortgage payments are still affordable during the maternity leave, so evidence of savings to substitute the difference in income and mortgage payments will often be required for the remainder of the maternity leave.
When calculating affordability, future childcare costs and changes to other commitments must be considered, to ensure the mortgage will remain affordable.
For further advice and help arranging a mortgage whilst on maternity leave, call 0345 4594490 or fill in our enquiry form.