As mortgage advisers we get asked “can you get a mortgage while on maternity leave” and we’re always pleased to be able to say YES you can if you meet the criteria.
But my bank said NO I cannot get a mortgage until I’m back at work.
Why The Mixed Messages ???
All banks have their own policies (rules) that determine how they assess mortgage applications, and one of these considerations will be based on income – something that is lacking whilst on maternity leave.
Most banks do not allow your income to be used in an application when you are not at work, such as when you are on maternity leave. They will not even use the paid parental leave and also not accept that you plan to return to work, until you are back at work and earning again.
But one bank says we can use the full income that an applicant will be earning after returning from maternity leave, and they just need letter from the employer confirming the role and salary that you will be returning on, plus as advisers we must provide commentary around how you will manage the mortgage payments during maternity leave and making an allowance for any future childcare costs.
Mortgage Advisers Have Choice
One of the big advantages of using a mortgage adviser is they have a choice of banks, and so in situations that maybe unusual they can often find a bank that will be more accepting of the situation.
So when we get asked “can you get a mortgage while on maternity leave” we know that there is a bank that we can approach on your behalf.
Of course there are a lot of advantages to having a mortgage adviser working for you, not only just to get the mortgage approved but to work with you over the years to ensure that you do not pay the banks too much.
Maybe today is a good time to have a conversation.