Mortgage while on maternity - advice from brokers please

bonniesareus

Hi,

I am currently on maternity and expect to return back to the same role full-time on the same pay in June. My employer only pays mat pay for first six month so I'm currently on nil pay.

We have a healthy deposit, debt free and are currently looking to buy. We met and talked to a broker about how much we could borrow. I was under the impression that my salary would not count or only a certain % would be considered. But he essentially said we would have no problem borrowing 4.5-4.75x times our combined income (100% of my return to work pay) and sounded ultra confident that all I'd need is a letter from my employer confirming the pay and date of return and that there would be a handful of mainstream lenders who're fine with that.

To be honest, he was completely dismissive of the maternity issue but we're not convinced that it isn't just bravado. Before we proceed to get an AIP through him, please can the brokers on the forum please opine as to whether there are mainstream lenders and products available where one borrower is on maternity and no pay at present?

sframpton

Hello,

I'm not a broker but I am currently on maternity leave... I am getting SMP at the moment and received my mortgage offer yesterday. Our mortgage is based on my RTW salary, not on what I am currently getting. I had to supply 3 payslips from before I went on maternity leave and a letter from my work confirming my RTW date and the hours I would be going back on. It was all quite straightforward. They did ask that we show proof of savings of £9k (on top of our deposit) to tide us over until I go back to work though. Our mortgage is with Santander, at a good interest rate.


Get a good broker to help you though - we were going through a free one initially and they did not seem to fully understand how it worked with maternity leave etc.


Hope this helps.

ACG

A letter to confirm when you will return and what your income will be should be enough to ensure you can use that income for mortgage purposes assuming you are going back within the next 3-6 months.

LRmortgage

Indeed this is very possible with 3 months per maternity pay slips and a letter from your employer to confirm retuning date and pay.
I know of at least a couple of lenders who wouldn’t even ask for a letter from your employer, just a letter from you confirming return to work.

Thrugelmir

LRmortgage wrote: »

I know of at least a couple of lenders who wouldn’t even ask for a letter from your employer, just a letter from you confirming return to work.

By default the return date is 52 weeks later. Unless the employee wishes to return earlier.

bonniesareus

Thanks all, that is indeed good news as it will increase our flexibility and range in a massive way.