Can you get a mortgage on maternity or paternity leave?
Yes, this is absolutely possible, but it’s really important to approach the right lender – as not all lenders will lend if someone is on, or will soon be going on parental leave.
How does maternity or paternity leave affect mortgage applications?
Maternity and paternity leave affects mortgage applications because lenders know in most cases applicants’ income will decrease when they go on leave from work.
There are mortgage providers who won’t lend to applicants on leave at all, while others will want to see evidence that you’re returning to work on full salary.
This is most commonly a letter from your employer stating your new working hours and pay.
The lender will also want to know your anticipated childcare costs as this will be taken into account when calculating your affordability.
What if you’re going back part-time?
In this case, most lenders will offer you a mortgage based the part-time salary you can evidence, so again, proof of return to work from your employers will be requested.
This all for both purchase applications, and remortgages – so don’t assume that you have to stay with your existing lender, if one of you is on maternity/paternity leave.
Your best bet is to speak with a mortgage adviser. We have lots of experience arranging mortgages for applicants on parental leave and would like to help you navigate your mortgage situation at ease, so that you can enjoy your parental leave in peace.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Get in touch with us today here or book directly onto my calendar here.
Willow Tree Financial Services are a Financial Adviser based in Polegate, East Sussex, UK. We specialise in Financial Planning, Mortgages, Investments & Pension Planning, Protection & Insurance Wills, Trusts & Estate Planning.
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