Additional FAQs- Mortgage on Maternity Leave
Does being on maternity leave affect applying for a mortgage?
Yes, maternity leave could affect getting a mortgage in the UK. Mortgage lenders will look at your income and check your affordability to pay the monthly payments. Some lenders will also be interested in knowing your expenses in child care costs. So, overall, it’s not easy to get a mortgage on maternity leave with child care costs and other regular expenses. The best thing that you can do is to contact a known mortgage broker who can help you with your mortgage application.
Maternity leave mortgages: what are the difficulties?
There are many implications of maternity leave on your mortgage application, one of these is reduced income as compared to your normal salary per month. Even if you apply for a mortgage while on a normal salary and just after that you, goes on maternity leave, it is likely to affect your loan application. Mortgage providers will access your affordability assessment based on your maternity leave income. There are also some other difficulties such as bad credit mortgage on maternity leave. It is always better to contact an expert about maternity leave mortgages.
Can I get a mortgage on maternity leave with a poor credit score?
It’s always difficult to get a loan with a bad credit history because mortgage providers think that you may not be able to pay the monthly repayments of your mortgage payments. Bad credit limits you with the total number of mortgage products that you can use, so its always better to consult an impartial mortgage broker to help you with your loan application with bad credit.
Can I get a maternity leave mortgage if I am self-employed?
Yes, you can always get a maternity self-employed mortgage but you need to have good business records to prove your earnings. You should also keep track of your expenses and show them along with your tax returns. If you are self-employed, then you must submit your annual accounts to the lender. You can read more about Self Employed mortgages.
How much time does it take to get a mortgage on Maternity Leave?
It takes around 1 week or 2 weeks to complete the process of getting a mortgage on maternity leave. However, there are certain things that you need to prepare before you start the application. These include;
1) Your employment details – this includes your current employer, expected date of return to work, expected duration of maternity leave, etc.
2) Income proof – this includes your last 3 months’ payslips, bank statements, etc.
3) Loan documents – this includes all the relevant information about your finances like your savings account, investments, etc.
4) Proof of address – this includes utility bills, rent agreement, etc.
5) Other documents – this includes birth certificates, medical certificates, etc.
6) Bank statement – this includes any outstanding loans or debts.
7) Tax Returns – this includes your last 6 months’ tax returns.
8) Any additional documents required by the lender.
Read about family mortgages on our website.
Will maternity leave impact joint mortgages?
Yes, maternity leave could also impact the joint mortgages. When you apply for a joint mortgage, the income of both partners is considered for mortgage affordability check. In some cases if your partner earns enough to pay the monthly mortgage repayments without using your reduced maternity leave mortgages, you may get a loan. But if your are partner is not earning enough and you are also on a maternity leave income, your application may get rejected. Its always better to contact the mortgage broker to apply on your behalf.
Read more about Joint Mortgages on our blog.
