Can you get a mortgage when pregnant or on maternity leave?

Key Takeaways

• Getting a mortgage while pregnant or on maternity leave is possible, but each lender has different requirements and ways of assessing your household income while on mat leave.
• Seek advice from an experienced mortgage broker to help you increase your chances of securing the right deal for your situation.
• You should be transparent about any changes to income on your mortgage application, including upcoming maternity leave.

Can you get a mortgage on maternity leave?

Yes, it is possible to get a mortgage on maternity leave. But it can be more complicated than if you were working full-time. Some mortgage lenders will reject applications from people on maternity leave, but most will simply want proof that you’ll return to work on a full salary, and when that will happen. Some lenders will base the loan amount on the amount you’ll earn on leave, rather than your usual salary, but this is rare.

To increase your chances of getting approved and getting a good deal, it’s wise to talk to a mortgage broker. They’ll know the industry inside out and will help you identify the flexible lenders who are most likely to have favourable criteria for maternity leave.

Can you get a mortgage when pregnant?

Yes, it is possible to get a mortgage while you're pregnant. Being pregnant can make it harder to get a mortgage, even if your maternity leave has not yet started. This is because, rather than focusing on your current income, lenders will sometimes assess affordability based on what income will be while spending more time with your baby.

The main thing lenders will be concerned about is affordability. If your household is going down to one income, or one of you is going on parental leave, this could reduce your mortgage affordability, potentially impacting the amount you could be offered for a mortgage, or your eligibility in the first place.

Working with a mortgage broker can really help in this situation, especially if the broker is an affordability expert like Tembo. We can help discover schemes that boost affordability that could help you get on the ladder sooner.

Will it be easier if I’m applying with my partner or spouse?

If you get a joint mortgage with your partner or spouse and they plan to keep working when the baby is born, this can make things easier. However, lenders may agree to lend based on your partner's income alone. This can mean that if your partner earns a modest salary and you’re hoping to buy a big house in an expensive area, you might not be able to borrow enough.

If it is still not affordable to get a mortgage on maternity leave, here are a couple of ways to boost your borrowing potential...

How to boost your borrowing power:

1) Use an Income Boost to increase borrowing

An Income Boost, sometimes called a Joint Borrower Sole Proprietor mortgage, could help you increase what you can borrow for a mortgage while you’re pregnant or on maternity leave. 

Here’s how it works:

1. You add a friend or family member to your mortgage application as a guarantor.
2. The lender takes their income into account when conducting affordability assessments.
3. With a higher total income, you may be offered a larger mortgage. This improvement in affordability could be significant

The person added to the mortgage won’t have ownership over the property, as they will be acting as a guarantor. But if there are difficulties making payments, the guarantor will need to help.

As long as all criteria are met, this can be done even if buying the property with your partner or spouse. You both would be joint owners, while the guarantor is simply added to the mortgage.

Next, consider your deposit size to see if you can boost your borrowing even further.

2) Use a Deposit Boost to grow the deposit

Another option is to use a Deposit Boost. This involves a friend or family member who owns their own home, remortgaging their property to free up equity, which can be gifted to you for your house deposit. With a larger deposit, you can reduce the amount you need to borrow and potentially access lower interest rates, making your mortgage more affordable while on maternity leave.

3) Get a 0% mortgage with a Savings as Security option

With a Savings as Security mortgage, also known as a springboard mortgage, allows you to buy a home with no deposit by utilising a loved one's savings. A family member or friend will put 10% of the full property value into a savings account with the mortgage lender.

Their money is held for 5 years as security against your mortgage. As long as you make your repayments each month, your loved one will get their money back at the end of the fixed term, plus any interest that has built up.

Because they've deposited 10% of the property's value, this removes the need for you to put down a deposit yourself.

4) Use rental history to prove affordability

With Skipton's Track Record mortgage, you can use your track record of paying rent each month to get a 100% mortgage - meaning you could buy a home with no deposit saved up.

To qualify, you have to evidence that you've paid your rent and household bills in full for the last 12 months.

5) Boost what you can borrow through a Professional Mortgage

If your partner is a key worker such as a nurse, doctor or teacher, or works in a professional field such as law or accountancy, they could qualify for a Professional Mortgage or a Key Worker mortgage. These are enhanced borrowing schemes that let the qualifying applicant borrow up to 5.5 or even 6.5 times their salary for a mortgage.

5.5x Income Mortgage is another option that may allow certain high earners to borrow more based on their income. If you or your partner is a high earner (earning at least £37,000 individually or £50,000 collectively), you could also qualify for a 5.5x Income Mortgage. This allows you to borrow up to 5.5x your income without needing to work in a professional field.

6) Reduce how much you need to buy with Shared Ownership

Instead of trying to get a mortgage for the whole property value, you could get on the ladder sooner by buying a share of a home through Shared Ownership. There are different Shared Ownership and part buy, part rent schemes, but the main crux of how they work is this - you'll buy a share of the home (normally 10-75%), which can be with a mortgage or outright. You'll then pay rent on the share of the home you don't own to your shared ownership provider.

Over time, you can buy more of the property to reduce how much rent you pay as well as how much of the property is yours. This is known as stair casing, and can either be done through monthly payments or in lump sums when you're ready.

Can mortgage lenders ask if I’m pregnant?

No, mortgage lenders are not allowed to ask if you’re pregnant or on maternity leave when you apply for a mortgage, as this would be discriminatory under the Equality Act 2010.

However, lenders are expected to take into account future changes in your incomings and outgoings. And of course, having a baby can impact every aspect of your finances.

So while a lender can’t ask if you’re pregnant, they may ask if you’re aware of any changes to your income or expenditure in the future. If you tell them that you’re pregnant, the underwriter will usually assess your finances as if you already have a child. This is to ensure the mortgage won’t become unaffordable once your baby has been born. This means they will add a dependent to your mortgage.

They might enquire about:

• How long your maternity leave will be
• Whether you plan to return to work full-time
• Whether your salary will be the same when you return to work
• How much you expect to spend on childcare

They might also ask your employer to provide them with a ‘letter of intent’ confirming the things you’ve told them. These questions might feel intrusive, but it’s all part of lenders’ affordability checks.

Do I have to tell the mortgage lender I’m pregnant?

Legally, applicants must declare any significant changes that could impact their ability to repay the mortgage in future. Since pregnancy or maternity leave usually affects finances, this generally falls into this category, so it’s important to inform your mortgage lender.

Does someone have to declare pregnancy on a mortgage application?

You do not have to declare pregnancy on a mortgage application, but you should disclose to your mortgage advisor or lender anything that will impact your financial situation in the future.

Having a baby is a huge life event, and will change your life as well as your finances! For that reason, always be upfront. Over 600,000 babies are born each year - so lenders are very used to applications with maternity cover! It’s nothing you need to try to conceal.

What happens if my lender finds out I didn’t disclose my pregnancy?

In some cases, not being truthful in a mortgage application could give your lender grounds to withdraw their offer. This may cause unnecessary stress during the home-buying process. The last thing you need is to be scrambling to find a new lender when you’ve already got a new baby to care for!

Read more: What to do if your mortgage application is rejected?

Does maternity leave affect a remortgage?

Yes, maternity leave could impact your remortgage. Remortgaging on maternity leave is not that different to making a new mortgage application. If you switch to a new mortgage lender, they will conduct an affordability test to ensure you can afford the mortgage before accepting the switch. Being on maternity leave could reduce your affordability, which could mean you might find it harder to remortgage.

Some people choose a product transfer with their existing lender, rather than trying to switch to a completely new deal. Product transfers rarely require affordability checks, provided you’re not extending the term of your mortgage or trying to release equity.

While this can be a relatively easy option, it’s not always the most cost-effective and could see you missing out on better deals and more suitable terms with other lenders. With a Tembo plan, you can see all your options in one place. So you can see if it's worth staying with your current provider or making the switch. Create yours here.

By comparing mortgages from lots of different providers rather than sticking with your current one, you could save thousands over the course of your mortgage term.

Before remortgaging on maternity leave, it’s a good idea to speak to a specialist mortgage broker like us. We’ll find a lender who’ll take your working salary into account, rather than one who’ll restrict the amount you can borrow.

Which lenders will consider the full salary?

Most UK lenders will accept mortgage applications from people on maternity leave, but they may have other criteria that need to be met. The majority of lenders will accept your full return to work salary rather than maternity pay. They will usually want a return to work date and letter, but beyond that, the process is generally straightforward!

For example, NatWest will take your full-time salary into account when assessing affordability but will ask for confirmation that you’re planning to return to work full-time.

Generation Home will accept 100% of your return-to-work income, provided you can prove you’ll be returning to work within 12 months of the application being submitted. You’ll also need to show how you are going to cover the reduction in income.

While Santander will check how affordable your mortgage will be when you’re on maternity leave. They’ll also factor in predicted childcare costs before deciding whether to lend.

Metro will accept the return-to-work salary, providing there’s income/savings to cover any reduction in income. The employer’s letter needs to confirm the return to work date, income, hours and that there’s no change in the terms of employment.

Can you get a mortgage on maternity leave if you’re self-employed?

Yes, it is possible to get a mortgage if you’re pregnant or on maternity leave and self-employed, but you may have to jump through a few extra hoops than if you worked for someone else. While lender criteria can seem unfair, ultimately, it’s designed to stop people from taking on more debt than they can afford.

The lender will want to know how your business and income will be impacted when you have a baby. If you have employees who’ll keep everything ticking over for you, the impact on your income may be minimal.

But if you’re a sole trader or you run a limited company by yourself, this might make it harder for you to keep up with repayments on your mortgage. If you’re pregnant or buying a house while on maternity leave, work out whether you’ll be able to afford the mortgage once your baby’s arrived.

If you have savings set aside to cover your expenses during maternity leave, it’s a good idea to mention this to your lender. It’s also wise to tell them if you plan to reduce childcare costs by having family members look after the baby while you work.