Can You Get a Mortgage on Maternity Leave?

Being on maternity leave does not automatically prevent you from getting a mortgage.

The important questions are how a lender assesses your current income, what you expect to earn after returning to work, and whether the mortgage remains affordable once childcare and other household costs are included.

Different lenders can treat the same circumstances differently, so the timing and presentation of the application can matter.

How do lenders assess maternity-leave income?

Mortgage lenders must obtain evidence for the income used in an affordability assessment. They also need to consider income, committed expenditure, essential household spending and future changes they reasonably know about. handbook.fca.org.uk

Depending on the lender and your situation, evidence might include:

  • recent payslips
  • bank statements
  • your employer’s maternity-pay policy
  • confirmation of your normal salary
  • your intended return-to-work date
  • confirmation of your planned working hours
  • evidence of any enhanced maternity pay
  • details of your partner’s income, where applicable

A lender may not simply assume that your normal salary is currently being received. Equally, being temporarily on reduced maternity pay does not necessarily mean every lender will assess you only on that reduced figure. Criteria vary, and the evidence requested will depend on the lender.

Why maternity pay can affect affordability

Statutory Maternity Pay can be paid for up to 39 weeks. Current government guidance states that eligible employees receive 90% of average weekly earnings for the first six weeks, followed by £194.32 a week or 90% of average earnings—whichever is lower—for the following 33 weeks. Some employers provide enhanced maternity pay. GOV.UK

This temporary reduction can affect an application when:

  • the household relies heavily on one income
  • the requested mortgage is close to the affordability limit
  • there are loans, credit cards or car finance
  • childcare will become a substantial expense
  • the applicant does not yet have a firm return-to-work plan
  • the return involves reduced hours or a different role

The outcome is not determined by maternity leave alone. The lender will consider the complete household position.

Will a lender use your salary after you return to work?

Some lenders may consider your expected return-to-work income when sufficient evidence is available. Others may take a more cautious approach or apply different calculations. Useful evidence can include an employer letter confirming:

  • your employment remains in place
  • your contracted salary
  • your planned return date
  • whether you will return full-time or part-time
  • any agreed change to your hours or pay

Do not give a lender a return date or working pattern that has not genuinely been agreed or that you do not reasonably expect to follow. Statutory Maternity Leave can last for 52 weeks, and employees generally need to give at least eight weeks’ notice if they change their return date. 

Do childcare costs need to be included?

Usually, expected childcare costs should be discussed honestly.

A lender assessing future affordability may need to understand:

  • nursery or childminder fees
  • how many days of childcare will be required
  • whether costs are shared with a partner
  • when payments will begin
  • whether family provides regular unpaid childcare
  • whether working hours will reduce

Do not omit likely childcare costs simply to improve an affordability calculation. A realistic application gives the lender and broker a more accurate picture.

Should you apply before, during or after maternity leave?

There is no single best answer. Applying before maternity leave may provide a clearer recent income history, but a known future change in income or expenditure can still be relevant. Waiting until after returning to work may make income easier to evidence, but delaying may not suit your purchase plans.

The right timing depends on:

  • the strength of the other applicant’s income
  • your maternity-pay arrangements
  • your planned return date
  • whether you are returning on reduced hours
  • expected childcare costs
  • deposit size
  • current debts and commitments
  • the lender’s individual criteria

A mortgage broker can compare how different lenders may assess the same circumstances before a full application or unnecessary credit search is made.

Documents to prepare

Before seeking a mortgage, it may help to assemble:

  • payslips from before and during maternity leave
  • recent bank statements
  • employer confirmation of salary and return-to-work arrangements
  • details of enhanced or statutory maternity pay
  • your expected childcare budget
  • evidence of your deposit
  • statements for loans, cards and other commitments
  • identification and address documents

If your return-to-work arrangements change, tell your broker or lender promptly.

Can maternity leave cause a mortgage application to be declined?

It can affect affordability, but it is not an automatic decline. An application could become difficult if the lender cannot verify sufficient sustainable income, future expenditure makes the mortgage unaffordable, or the requested borrowing is too high for that lender’s model.

Another lender may assess the case differently, but no broker or lender can guarantee acceptance.

Bottom line

You may be able to get a mortgage while on maternity leave, provided the borrowing is affordable and the relevant income and future costs can be evidenced properly. The key is to check lender criteria before applying, provide an honest return-to-work plan and include realistic childcare and household costs.

If you are buying your first home, read the first-time buyer mortgage guide. For a wider explanation, see how mortgage lenders assess affordability.

Enquiry next step: Start a first-time buyer mortgage enquiry to discuss income, deposit and likely lender criteria with a mortgage specialist.