Can you get a mortgage on maternity leave?
Posted on 24th April 2023 at 17:22
Maternity leave will certainly have an impact on your household income which is why lenders tend to approach mortgage applications with caution. However, there are a number of lenders who are happy to consider mortgage applications during maternity leave. They key is sourcing the right lender to meet your requirements.
There are a number of lenders who will have a flexible approach to maternity leave. They will want you to be able to confirm in writing from your employer when you will be returning to work, the terms you are returning on (for example you may have left as a full time employee but will be returning as a part time employee) and what your annual salary will be.
The majority of lenders will use your updated salary as your income to then determine the amount of borrowing. If you are with a lender already and are looking to change your rate, you may not qualify moving to a new lender through remortgaging however, you may be able to do a product transfer with your existing lender.
If you are self employed, the process can be slightly more complex. The lender will want to understand the impact your maternity leave will play on the business. Most lenders will take your previous years SA302 / SA100 tax returns as your proof of income. This therefore would have an impact on any future borrowing as your accounts may take a hit whilst you are off work. However, if you are a business that has employees, keeping the business going in your absence, this may not affect your income at all.
What ever your circumstances are, speak to us at HD Consultants. Having access to multiple lenders enables us to research your case, discuss your circumstances with the underwriters and therefore present you with the best options whether that be with your existing lender or a new lender.
Victoria Bennett CeMap
07305 396 811
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