Maternity leave for some parents-to-be is a time of financial uncertainty but, despite what you might have heard to the contrary, it\u2019s possible to get a mortgage while you\u2019re on it. Although some mortgage providers are cautious of customers who are off work on maternity, with the right advice, you shouldn\u2019t have to put your homeownership plans on hold.\r\n\r\nIn this guide, we\u2019ll explain the full implications of maternity leave on mortgages and mortgage applications, outline the lending criteria for new parents and tell you where to turn for the right advice.\r\n\r\nPlus, in our FAQ section, we field the questions we hear most often from mortgage applicants who are on maternity leave or due to go off on it.\r\n<ul>\r\n \t<li><a href="#can-you">Can you get a mortgage on maternity leave?<\/a><\/li>\r\n \t<li><a href="#borrow">What's the most you can borrow on maternity leave?<\/li>\r\n \t<li><a href="#deposit">How much deposit do you need?<\/li>\r\n \t<li><a href="#remortgage">Remortgaging on maternity leave<\/li>\r\n \t<li><a href="#lenders">Which mortgage lenders will accept my full salary?<\/li>\r\n \t<li><a href="#expert">Speak to an expert<\/li>\r\n \t<li><a href="#faqs">FAQs<\/li>\r\n<\/ul>\r\n[feefo-banner]\r\n<h2 id="can-you">Can you get a mortgage on maternity leave?<\/h2>\r\nYes, with some mortgage lenders this is absolutely possible, but approaching the right one is key. There are mortgage providers who won\u2019t lend to applicants on maternity leave at all, while others will want to see water-tight evidence that you\u2019re returning to work on full salary.\r\n\r\nYou\u2019ll need to find a mortgage lender who understands the needs of customers on maternity leave, won\u2019t penalise them with caveats or turn them away altogether. The best way to find a lender like this is to apply through a broker who specialises in getting mortgages for borrowers who are currently on maternity leave or those who are due to go on it.\r\n<h3>Does maternity leave affect a mortgage application?<\/h3>\r\nMaternity leave affects mortgage applications because most lenders will assume the applicants\u2019 income will decrease when they go on leave from work. So, if you apply for a mortgage and your normal salary is say, \u00a330,000 a year, when you\u2019re on maternity leave it is likely to drop down considerably - if not for a short time, then for the whole time that you\u2019re away from work. Some lenders won't base your<a href="https:\/\/www.onlinemortgageadvisor.co.uk\/mortgage-affordability\/"> affordability<\/a> on the full \u00a330,000 and may offer you a mortgage based on a varying percentage of this, while others won\u2019t lend at all.\r\n\r\nThere are, however, lenders out there who are more than happy to consider your full salary, even if you\u2019re on maternity leave at the time of the<a href="https:\/\/www.onlinemortgageadvisor.co.uk\/mortgage-application\/"> mortgage application<\/a>.\r\n<h3>How to get a mortgage on maternity leave<\/h3>\r\nTo get a mortgage from one of these flexible lenders, you will likely need a letter or reference from your employer confirming that...\r\n<ul>\r\n \t<li>That you\u2019ll definitely be going back to work<\/li>\r\n \t<li>The projected date you\u2019ll be going back<\/li>\r\n<\/ul>\r\nYour lender is also likely to ask for evidence of the terms you\u2019ll be returning to work on. For example, if your hours and salary are going to be the same. If not, then what will your income be? Lenders will likely only offer you a multiple of the salary you can prove you\u2019ll be on when you\u2019re back at work. If you can evidence full-time hours and an unchanged rate of pay, there\u2019s no reason why you can\u2019t borrow based on your normal salary.\r\n\r\nYou should also consider speaking to a mortgage broker who specialises in customers on maternity leave before you apply, as they will be able to introduce you to a lender who understands your needs and circumstances, and is best positioned to offer a good deal.\r\n<h3>What if I\u2019m going back part time?<\/h3>\r\nThen most lenders will only be able to offer you a mortgage based on a multiple of the part-time salary you can evidence. You\u2019d essentially be treated as being in part-time employment, which doesn\u2019t necessarily mean you can\u2019t get a mortgage. You can read more about this in our<a href="https:\/\/www.onlinemortgageadvisor.co.uk\/income-types\/part-time-jobs-and-mortgages\/"> guide to getting a mortgage on part-time income<\/a>.\r\n<h2 id="borrow">What's the most you can borrow on maternity leave?<\/h2>\r\nWhen you\u2019re on maternity leave the most you can borrow on a mortgage will differ from lender to lender. Some will take 50% of the total income you can evidence, others won\u2019t take any of it, and there are even ones who will lend based on the 100% of your normal salary.\r\n\r\nThis is why finding the right lender is so important if you\u2019re applying while on maternity leave. Ideally, you\u2019ll want to use a lender who allows you to declare the maximum amount of income without any caveats attached. And you\u2019ll want to find that lender first time, since too many applications in a short period of time can negatively impact your credit report.\r\n\r\nSome lenders will allow you to borrow 4.5 times the amount of income you can evidence; others stretch to 5 times and a minority even higher, but other factors, such as having bad credit and the amount of deposit you\u2019ve saved, can impact your borrowing potential.\r\n<h3>Joint mortgages when one applicant is on maternity leave<\/h3>\r\nIf you\u2019re making a joint mortgage application and one of the applicants is on maternity leave, some lenders will look at both of your earnings and lend between four and five times combined income, under the right circumstances and with appropriate evidence of income.\r\n\r\n<b>Example:<\/b> If both named applicants earn \u00a320,000 and one is on maternity leave, some lenders will consider your joint income to be \u00a340,000, so as long as you can evidence that whoever is going to be off work - on maternity or paternity leave - will be going back on the same terms of employment. In this scenario with a \u00a340,000 joint income, you\u2019ll be able to borrow between \u00a3160,000 and \u00a3200,000 depending on circumstances.\r\n<h2 id="deposit">How much deposit do you need?<\/h2>\r\nThe amount of deposit you'll need to get a mortgage when pregnant or on maternity leave really depends on your overall situation. But the minimum you\u2019re likely to need is 10% of the property\u2019s value, unless you\u2019re applying through a scheme like Help to Buy.\r\n\r\nTypically, the larger the deposit, the higher the chance of getting a mortgage based on maternity leave income at the best rate possible. You\u2019d have a much stronger case for borrowing at 50% loan to value (LTV) than if you were borrowing at 95% LTV, for instance.\r\n\r\nThe amount of deposit you\u2019ll be asked for will also hinge on factors beyond your maternity. It all depends on how much risk the mortgage provider thinks they\u2019re taking on by lending to you. If, for example, you have bad credit, you might be asked to put down a larger deposit.\r\n\r\nYou can read more about deposit requirements in our<a href="https:\/\/www.onlinemortgageadvisor.co.uk\/deposits\/"> complete guide to mortgage deposits<\/a>.\r\n<h2 id="remortgage">Remortgaging on maternity leave<\/h2>\r\n<a href="https:\/\/www.onlinemortgageadvisor.co.uk\/remortgages\/remortgage-guide\/">Remortgaging<\/a> on maternity leave works similarly to making a new mortgage application. It\u2019s a case of finding the right mortgage lender, one who\u2019s willing to be flexible and let you borrow based on your full-time wage without any caveats attached.\r\n\r\nMost of these lenders will want to see evidence that you\u2019re returning to work on full-time hours and unchanged employment terms, and some will be stricter about this than others.\r\n\r\nThe thing to remember is that, with the right lender, you\u2019re unlikely to have to wait until you return to work to remortgage based on your full-time salary. The best way to find the right lender is to apply through a broker who specialises in customers on maternity leave. They\u2019ll know exactly which mortgage providers to approach for a remortgage under these circumstances, so you can rest assured that you\u2019ll be paired with the ideal one first time.\r\n<h2 id="lenders">Which mortgage lenders will accept my full salary?<\/h2>\r\nThe majority of UK mortgage lenders will at least consider a mortgage application based on your full salary while you\u2019re on maternity leave. There are only a few who won\u2019t and they include <b>Vida Home Loans, Hodge<\/b> and <b>Marsden Building Society<\/b>.\r\n\r\nBut bear in mind that some of the lenders who will consider this may have caveats.\r\n\r\nFor example\u2026\r\n<ul>\r\n \t<li><b>Earl Shilton Building Society <\/b>will consider offering you a mortgage based on a multiple of your full-time income, but only your maternity leave income can be used for the affordability assessment<\/li>\r\n \t<li><b>Teachers Building Society <\/b>decide whether to offer mortgages to maternity leave applicants based on their full-time salary on a case-by-case basis<\/li>\r\n \t<li><b>Natwest <\/b>will let you use your full-time salary for affordability purposes but will ask you to confirm that you\u2019re planning to return to work full-time and reserve the right to request additional information if they feel that\u2019s necessary<\/li>\r\n \t<li><b>Post Office <\/b>will ask you to confirm whether you\u2019re planning to return to work full-time and only let you declare your reduced income if you\u2019re going back part-time<\/li>\r\n \t<li><b>Precise Mortgages <\/b>Will only consider your full-time salary when you\u2019ve returned to work and will ask for a letter from your employer to verify your hours and pay<\/li>\r\n \t<li><b>Santander <\/b>Want to know that your mortgage is affordable while you\u2019re on maternity leave and will factor in anticipated childcare costs when assessing this<\/li>\r\n<\/ul>\r\nThe above is merely a few of the caveats that some mortgage lenders apply to maternity leave applicants. All of this should be taken into account when searching for the right lender for you, and this is why speaking to a mortgage broker is recommended.\r\n\r\nA broker who specialises in maternity leave applicants will know exactly which lenders will be happy to offer mortgages based on full-time salary with minimal caveats. What\u2019s more, they have deep working relationships with these mortgage providers and can negotiate the most favourable deal on your behalf.\r\n<h2 id="expert">Speak to an expert about maternity leave and mortgages<\/h2>\r\nIf you\u2019re on maternity leave, or due to go on maternity leave, and want to apply for a mortgage, finding the right lender is critical. Approaching the wrong one could mean being offered a mortgage based on a capped percentage of your full-time salary or being turned away altogether. The last thing you want is to have to approach multiple lenders, as too many finance applications in a short space of time can damage your credit report.\r\n\r\nThe best way to find your ideal lender first time is to apply through the right broker, and this is where we come in. We offer a free broker-matching service that will take your needs and circumstances into account and introduce you to the best advisor for the job. This will be a fully-vetted broker who helps people get a mortgage on maternity leave every day.\r\n\r\nCall 0808 189 2301 or<a href="https:\/\/enquiries.onlinemortgageadvisor.co.uk\/mortgage-on-maternity-leave-advice"> make an enquiry online<\/a> and we\u2019ll introduce you to a broker for a free, no-obligation chat that won\u2019t leave any marks on your credit report.\r\n<h2 id="faqs">FAQs<\/h2>\r\n<h3>Should you tell the lender if you\u2019re on maternity leave?<\/h3>\r\nYes. If you\u2019re on maternity leave, you will need to tell the mortgage lender before they finalise your application and declare all of the specifics around your employment situation. If you\u2019re already on maternity, there\u2019s a good chance this will come to light during the lender\u2019s checks, anyway. For instance, you will be expected to provide recent payslips to prove your earnings, and evidence of your maternity leave is likely to crop up on them.\r\n\r\nMoreover, during the application process, the lender will also ask you about any material changes to your circumstances that could impact your ability to repay the mortgage. Maternity leave and a lower income definitely qualify, and it\u2019s in your best interest to be completely honest and transparent when answering these questions.\r\n<h3>Should you tell the mortgage lender if you\u2019re pregnant?<\/h3>\r\nYes. If you\u2019re applying for a mortgage when pregnant it\u2019s best to let the lender know. They won't ask you if you\u2019re pregnant directly but, as above, you\u2019ll be asked to name any material changes that could affect repaying the loan, and pregnancy is one of them.\r\n\r\nOf course, as you've not yet started maternity leave it\u2019s technically a grey area as to whether expecting parents need to legally disclose not only the fact that they'll be away from work, but also that they\u2019ll eventually have a new dependent, which can further impact affordability.\r\n\r\nBecause that dependent doesn't yet exist, not every lender will have the same opinion on whether this needs declaring, and even at which point in time you\u2019re supposed to disclose it. Should this be at the point of conception? Week four? Week 12? Week 26? At birth?\r\n\r\nThe lender's underwriters will be able to advise more on this. When getting a mortgage while pregnant, it's always important to be upfront and honest about everything to ensure you fit with their policy, and this is just one reason why using the right mortgage broker is vital.\r\n<h3>What\u2019s the difference between maternity leave and paternity leave?<\/h3>\r\nIn the eyes of mortgage lenders, it makes very little difference. Most lenders that accept people on maternity leave will use the same guidelines for paternity leave. In short, when applying for a mortgage on maternity or paternity leave - the same rules apply.\r\n<h3>Can self-employed people get a mortgage on maternity leave?<\/h3>\r\nYes, but this can be less straightforward. If you\u2019re looking for a<a href="https:\/\/www.onlinemortgageadvisor.co.uk\/self-employed-mortgages\/"> self-employed mortgage<\/a> and are going on maternity leave, the lender will want to know what impact this might have on your business. For instance, most banks will lend based on the figures from your year-end accounts or your SA302s, which obviously won't state what your future income will be.\r\n\r\nIf you declare that you are pregnant, or your partner is pregnant and therefore going to be on maternity\/paternity leave, this is quite clearly going to affect how much time you can spend on or at your business, and in turn impact your future income.\r\n\r\nThe effect that may have on your application will depend on your level of day-to-day involvement in the business. If the business will not function without you being there, then the impact on your income is going to be significant. But if you own a business and there are employees that will look after the business for you, then the impact on the business and therefore your income will be less significant.\r\n\r\nIn the latter instance, the lending underwriters may take a view that your income will not be affected by your self-employed maternity leave, but you will need to satisfy any further questions the underwriter has in regards to that.\r\n<h3>What if I've got bad credit?<\/h3>\r\nIf you're going on maternity leave and you've bad credit, you may find getting a mortgage much more difficult. Unfortunately, lenders that accept your full pre-maternity income will typically be the type of lender that won't offer<a href="https:\/\/www.onlinemortgageadvisor.co.uk\/bad-credit-mortgages\/how-to-get-a-mortgage-with-bad-credit\/"> bad credit mortgages<\/a>.\r\n\r\nThere are many lenders that accept adverse credit, depending on your deposit size and other factors. Some of them will accept cases as severe as bankruptcy, and with as little deposit as 15%, depending on how long ago your bankruptcy was.\r\n\r\nHowever, those types of lender are not likely to accept your full income when on maternity leave and to be approved it will really be on a case-by-case basis. Under niche circumstances like this, it\u2019s important to talk to a mortgage broker who knows the market before you apply, as this will give you the best chance of finding the right lender.