Getting a mortgage after unpaid maternity leave

greenorchard

Hi all, myself and my husband are hoping to buy a house next year, ideally around mid-2016. We've been saving for a long time for a deposit and have almost reached our target now (which will be higher than the minimum amount required). At the moment I'm on maternity leave and my job are only topping up my pay for 3 months. The other 3 months I'll just be receiving the state maternity benefit. I may also end up taking a month or two extra unpaid leave once my 6 months maternity is up in Feb 2016.

Does anyone know if this will be a problem when applying for a mortgage? We'd be hoping to apply within a couple of months of me returning to work. Am I going to have to wait until I'm back in work for 6 months before we can get one though? I know you usually have to show you've been saving for 6 months but I obviously won't be able to do this for the unpaid part of my leave. However, I've always been a good saver so I have years' worth of savings records before my maternity leave - will this stand to me at all or will they not even consider us for a mortgage so soon after being on unpaid maternity leave?

Thanks

Trish56

Once you return to work there should be no problem applying for a mortgage. Lender will look for proof of affordability when assessing your application and you will need to provide evidence of savings/rent paid over the last 6 months. The fact that you were on maternity benefit should have no bearing on the matter as you are still expected to make full mortgage (if you had a mortgage) repayments when on maternity leave.

greenorchard wrote: »

Hi all, myself and my husband are hoping to buy a house next year, ideally around mid-2016. We've been saving for a long time for a deposit and have almost reached our target now (which will be higher than the minimum amount required). At the moment I'm on maternity leave and my job are only topping up my pay for 3 months. The other 3 months I'll just be receiving the state maternity benefit. I may also end up taking a month or two extra unpaid leave once my 6 months maternity is up in Feb 2016.

Does anyone know if this will be a problem when applying for a mortgage? We'd be hoping to apply within a couple of months of me returning to work. Am I going to have to wait until I'm back in work for 6 months before we can get one though? I know you usually have to show you've been saving for 6 months but I obviously won't be able to do this for the unpaid part of my leave. However, I've always been a good saver so I have years' worth of savings records before my maternity leave - will this stand to me at all or will they not even consider us for a mortgage so soon after being on unpaid maternity leave?

Thanks

detoxkid

They take the most recent six month period and look at your savings pattern. They are looking for your ability to pay the mortgage, then some. So for me, I enquired just after I was back from work after taking the 16 weeks unpaid leave and I wouldn't have been eligeable as I had saved nothing during that period. But if your partner is saving the required amount during this time it is fine iukwim. They told me to come back after another 6 months. But for me I'm pregnant again so it will be a while!

greenorchard

detoxkid wrote: »

They take the most recent six month period and look at your savings pattern. They are looking for your ability to pay the mortgage, then some. So for me, I enquired just after I was back from work after taking the 16 weeks unpaid leave and I wouldn't have been eligeable as I had saved nothing during that period. But if your partner is saving the required amount during this time it is fine iukwim. They told me to come back after another 6 months.

This is what I was afraid of. If I take any extra unpaid leave we won't be able to save any money on top of rent on my husband's salary alone so we'd have to wait until I was back in work six months. May have to skip any unpaid leave

detoxkid

It's a tough choice and like anything else it could depend on who you are dealing with in the bank. The unpaid leave was so well worth it for me I have to say. I'm def taking it again this time even though it will mean that we won't be able to apply for a mortgage until six months after I'm back at work.

greenorchard

It's a tough decision alright. I'll probably wait until after Christmas to make a definite decision. Best of luck with your second pregnancy!