Getting a Mortgage on Maternity Leave: What Lenders Consider

Getting a Mortgage While on Maternity Leave

Applying for a mortgage while on maternity leave used to be extremely difficult, with many lenders refusing to consider maternity pay as income. Fortunately, the rules have changed significantly, and discrimination against women on maternity leave is now unlawful. However, the process still requires careful preparation.

Can Lenders Refuse You Because of Maternity Leave?

No — under the Equality Act 2010, mortgage lenders cannot discriminate against you because you're on maternity leave. In 2019, the Financial Conduct Authority (FCA) issued guidance making it clear that lenders should assess maternity leave applications based on your return-to-work income, not your temporary maternity pay.

If a lender refuses your application solely because you're on maternity leave, this could constitute discrimination.

How Lenders Assess Maternity Income

Most lenders now take one of two approaches:

Approach 1: Return-to-Work Salary

The majority of mainstream lenders will base their affordability assessment on the salary you'll return to after maternity leave. You'll typically need to provide:

•A letter from your employer confirming your return-to-work salary and date

•Your last three months' payslips before maternity leave

•Your P60 for the previous tax year

•Details of your maternity pay schedule

Approach 2: Current Income

A small number of lenders may assess based on your current maternity pay, which will significantly reduce the amount you can borrow. Avoid these lenders if possible.

Tips for a Successful Application

1.Use your return-to-work salary — get a letter from your employer confirming your salary and intended return date

2.Choose the right lender — work with a mortgage broker who understands maternity leave applications (not all lenders are equal)

3.Apply with a partner — if applying jointly, the non-maternity-leave income strengthens the application

4.Get your documents ready — pre-maternity payslips, P60, employer's letter, and bank statements

5.Reduce other debts — pay down credit cards and loans to improve affordability ratios

6.Consider the timing — some women find it easier to apply just before starting maternity leave when payslips still show full salary

How Much Can You Borrow?

If the lender uses your return-to-work salary, your borrowing capacity should be similar to a normal application. Most lenders offer 4-4.5 times your annual income:

•£30,000 salary: Up to £135,000

•£40,000 salary: Up to £180,000

•£50,000 salary: Up to £225,000

•Joint application (£30k + £35k): Up to £292,500

Use our Maternity Pay Calculator to understand your income during leave, and plan your mortgage payments around the temporary income reduction.

Mortgage Payments During Maternity Leave

While you can get a mortgage, you need to plan carefully for the reduced income during maternity leave:

•Your SMP will be significantly lower than your normal salary — use our Take-Home Pay Calculator to see exactly what you'll receive each month

•Budget for mortgage payments using your maternity pay figures from our Maternity Pay Calculator

•Consider building a savings buffer of at least 3-6 months' mortgage payments before your maternity leave starts

•Check if your mortgage product allows payment holidays or temporary reduced payments — many lenders offer these, though interest continues to accrue

Practical Budgeting Tips for Mortgage Holders

Managing a mortgage on maternity pay requires proactive planning. Here are strategies that can help:

•Overpay before maternity leave: If your mortgage allows it, make overpayments while you're on full salary. This reduces your outstanding balance and may give you the option to underpay later

•Switch to interest-only temporarily: Some lenders allow a temporary switch to interest-only payments, which can halve your monthly outgoing. Speak to your lender well in advance

•Review all household outgoings: Cancel unused subscriptions, switch utility providers, and reduce discretionary spending to free up cash for mortgage payments

•Use annual leave strategically: Taking accrued holiday before or after maternity leave means weeks at full salary instead of SMP, easing the pressure on mortgage payments

•Claim all benefits you're entitled to: Child Benefit, potential Universal Credit top-ups, and other support can help cover the shortfall

Read our financial planning for maternity guide for comprehensive budgeting advice.

Remortgaging on Maternity Leave

If you're remortgaging rather than buying, the same principles apply — most lenders will use your return-to-work salary. However, your existing payment history works in your favour, as it demonstrates you can afford the repayments.

What to Do If You're Refused

If a lender refuses your application because of maternity leave:

1.Ask for the reason in writing

2.Complain to the lender — their decision may violate equality law

3.Contact the Financial Ombudsman Service — they handle complaints about unfair mortgage decisions

4.Try a different lender — experiences vary significantly

5.Use a specialist broker — they know which lenders are maternity-friendly

Child Benefit and Mortgage Applications

Your Child Benefit income can sometimes be included in mortgage affordability assessments. While it's a small amount, every bit helps. Make sure to mention it to your mortgage adviser.

Related Resources

•Calculate your maternity pay — understand your income during leave

•Financial planning for maternity

•How much maternity pay will I get?

•Your maternity leave rights