Mortgage Adviser Q&A: Securing a mortgage whilst on maternity leave

Mortgage Adviser

Are you able to get a mortgage while on maternity leave?


Since many couples think about moving to larger homes when their family begins to grow, it is far from amazing that we are often asked if it is possible to get a mortgage when on maternal leave.


The simple answer is yes for almost all circumstances. Nevertheless , there are lots of things to consider and lenders do fluctuate in the way they calculate affordability during this time.


Some lenders will use only the income during maternity leave in their affordability calculation that may often leave the maximum loan available too low.


However, other lenders will use the ‘usual’ salary or the ‘return to work’ salary in the calculation if return to work is within the next few months. If perhaps return to work is not anticipated for a longer time period there are still one or two lenders that will think about the application under these conditions.


In order to facts this, lenders are likely to request a notice from the client credit reporting the ‘usual’ salary and the current income. They will will also request a letter from employers to confirm the return to work date, the words of the contract – hours and ‘return to work’ salary.


It will be important that mortgage repayments can still be provided through the maternity leave so proof of savings to substitute the in income and home loan repayments will often be required for the remainder of the expectant mothers leave.


Consideration as to future child care costs when calculating affordability should be made as well to ensure that the mortgage will be affordable permanent.


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