What to expect when you're applying for a mortgage while pregnant

Applying for a mortgage while pregnant or on maternity leave is possible, but it does come with some extra considerations.

Not all lenders will be willing to offer a mortgage based on reduced income. Others will need to see evidence that you’re planning on returning to work on a full salary.

How maternity leave affects your mortgage application

When you apply for a mortgage, the lender will check your affordability based on your income and outgoings (and that of any joint applicant). If you’re due to go on maternity leave soon, lenders may assume that your income will reduce. This may affect how much you can borrow and whether your application gets accepted.

While lenders aren’t allowed to ask you directly whether you’re pregnant, they will ask if you’re expecting there to be any financial changes soon. It’s best to be as transparent as possible so you don’t end up with a mortgage that you can’t afford.

How to get a mortgage on maternity leave

It’s a good idea to speak with a mortgage broker before you do anything, as they can help with:

Getting a letter from your employer confirming your return-to-work date, hours, and salary.
Collecting the different types of evidence you’ll need for your application.
Finding the right lenders who are more likely to support your mortgage application.

You'll need to be able to show:

your earnings before maternity leave
your maternity pay
a plan for your return to work.

Budgeting for reduced income during parental leave

Creating a detailed budget to show how you'll manage your finances during and after maternity leave is essential.

Evidence of savings, a partner’s income, or other forms of support can strengthen your case. Additionally, lenders will likely ask for your plans regarding childcare costs after you return to work, as this could affect your affordability for a mortgage.

Here are some things you should consider factoring in when doing your budget:

Your maternity pay. Find out exactly how much you’ll receive in Statutory Maternity Pay (SMP), Maternity Allowance (MA), or any enhanced pay from your employer. MA lasts for up to 39 weeks. SMP is also paid for up to 39 weeks, but usually drops to a lower amount after the first six weeks, so factor that in.
Essential expenses. List all your essential bills like rent/mortgage, utilities, groceries, and any existing debt repayments. Compare these with your reduced income.
Additional support. Consider any savings, Child Benefit, financial help from family, or a partner’s income. This can help cover any shortfall during leave.
Planning for childcare costs. Once you return to work, childcare expenses can be significant. Factor these into your long-term budget to ensure you can manage future payments. Check if you are eligible for Tax-Free Childcare, as well as 15 or 30 hours free childcare.
Building a savings cushion. If possible, try to save extra money before going on leave to create a financial buffer for unexpected costs.
Reviewing non-essential spending. During this period, you could consider cutting back on non-essential expenses like dining out or entertainment.

Joint mortgage applications and parental leave

If you’re applying for a mortgage with a partner, lenders will consider both of your incomes and outgoings to assess affordability. If one of you is on maternity or paternity leave, you’ll need to show how you’ll manage your finances in the short term and when you return to work.

If you're planning to return to full-time work, this can increase your borrowing power, but any childcare costs also need to be factored in.

Getting a mortgage if you're self-employed and planning for maternity leave

Getting a mortgage when you're self-employed and expecting can be more challenging than for salaried employees, but it is possible. Here's what you need to know:

Provide proof of income. Lenders usually ask for at least two years of accounts or tax returns to verify your income. They may also request your SA302 forms from HMRC, which summarise your income and tax paid. It’s especially important to have your finances in order before maternity leave begins.
Show stable income. Lenders want to see a steady or growing income over the last two to three years. A significant drop in earnings could make it harder to get a mortgage.
Consider a larger deposit. With fluctuating income, especially around maternity, you may need to offer a higher deposit to reduce the lender’s risk. A larger deposit can improve your chances of approval and securing better interest rates.

Can you remortgage while on maternity leave?

Yes, remortgaging is possible while on maternity leave, though it might require some additional financial evidence. Many lenders will still base your affordability on your full salary if you can prove your return-to-work date and salary. Be transparent with your lender to make sure you can afford the new payments.

Work with a mortgage broker for better deals

It’s not essential that you use a mortgage broker, but it can definitely help to simplify the process. Mortgage brokers who understand the specific challenges of applying while on maternity leave can help you find lenders who may be more willing to offer you a mortgage based on your full-time salary rather than your reduced maternity pay.

Using a mortgage broker can also save time and reduce the risk of you having to make multiple applications before getting approved, which could harm your credit score.

Disclaimer: We make every effort to ensure that content is correct at the time of publication. Please note that information published on this website does not constitute financial advice, and we aren’t responsible for the content of any external sites.

Fiona Peake

Personal Finance Writer

Fiona is a personal finance writer with over 7 years’ experience writing for a broad range of industries before joining Ocean in 2021. She uses her wealth of experience to turn the overwhelming aspects of finance into articles that are easy to understand.