Can you buy a home while on maternity leave?

You’ve just welcomed a new addition to your family (or are about to) and now need a bigger place for all the bits and bobs that a new child comes with! Many people think you have to delay your property purchase while on maternity leave, but the reality couldn’t be more different. In this guide, we share everything you need to know about buying a home on maternity leave…

So, can I really get a mortgage while on maternity leave?

Yes, you can! There are in fact no rules that stop someone on maternity leave (or expecting a baby) from applying for a mortgage, with lender assessments reviewing affordability that isn’t dependent on whether the applicant is currently working.

While you will have to confirm that you are employed and intend to return to work once your maternity leave is over, your mortgage application can go ahead as planned.

Great, but will the property have to be in my partner’s name?

This is another big myth that is bandied about by would-be buyers, and it causes a lot of concern for those looking to get onto or move up the property ladder during maternity leave. Providing you meet your lender’s affordability requirements however, you can still apply for a mortgage in your name or apply jointly with your partner. If successful, the mortgage and property deeds will be in both applicants’ names.

Could being on maternity affect how much we can borrow?

Potentially – as with any mortgage application, you’ll need to provide proof of income when applying. Additional criteria regarding how affordability is calculated varies from lender to lender. Some base this on your normal salary if you have confirmation that you’ll be returning to work on the same terms, while others may use your current maternity pay, or a combination of the two, depending on their lending policy.

Here Halifax offers an insight into how they assess proof of future income in these cases:

“To apply for a mortgage in general, you need to provide evidence of your finances. This is the same when you apply for a mortgage on maternity leave. The only difference is that you may have to present more proof. You’ll need to have evidence that your income will increase again when you return to work and when that will be. Be as honest as possible with potential lenders about your situation. This will make it easier for them to offer you an accurate deal.”

Along with recent payslips, bank statements and proof of maternity, it is likely that you’ll need to provide a letter from your employer confirming your return to work date, the circumstances of that return (do you plan to return full- or part-time?) and your expected salary.

I’m pregnant, can I still apply for a mortgage?

Pregnancy doesn’t affect your ability to apply for a mortgage. If you’re likely to begin maternity leave before completion or your income is about to change, you should discuss this with your mortgage advisor as early as possible in the process.

A lender will assess your income, employment and affordability, and only ask for clarification about future income if you have already started your maternity leave and/or are receiving maternity pay.

Should I wait until I return to work?

The answer to this question depends on your circumstances. If you’ve already found a property you’ve fallen in love with, or mortgage rates and property prices could change while you wait, delaying buying may not be the right choice. On the other hand, your full salary may give you the financial boost needed to borrow more and secure a better mortgage deal.

Find a local mortgage advisor to get the timing of your property purchase just right here at The Mortgage Bureau.