It wasn’t so long ago that my wife was pregnant and the issue of maternity leave and pay was high on the agenda.
If you’re in the position where you need to move during a period of maternity leave then a lender’s stance can be dependent on the period left before you return to work i.e. some may require the return to work date to be within three months of a mortgage application being made.
A lender may also require a letter from the employer confirming the return to work date and salary but what if you haven’t made a final decision on when you may return to work. There is no need to be too concerned, other lenders show more flexibility i.e. some will consider an application at any time during the maternity leave and may just request an employer’s reference to confirm the salary on return. Others may ask for the latest payslip prior to maternity leave, a letter from the applicant confirming the likely return to work date and if on same basis – full time or part time, and if there is no change to terms and conditions they will then use the income on the payslip provided.
Occasionally a lender may also require evidence of savings to cover mortgage payments for the period between the application being made and the planned returned to work date.
So lender’s criteria can vary fairly significantly but importantly this does mean that options are likely to be available whatever your position..
Finally, it is important to highlight that some lenders will wish to ascertain what childcare costs are likely after the applicant has returned to work and this can impact on potential borrowing but again some lenders are more flexible than others in this regard.