Being pregnant does not automatically disqualify you from getting a mortgage in the UK. Lenders consider various factors when assessing mortgage applications, including your financial stability and income, which may be impacted if you are on maternity leave.
Today only 33% of home buyers have children under the age of 18, let alone being pregnant. However, pregnancy itself does not affect your ability to qualify for a mortgage, as long as you meet the lender’s requirements. With this in mind, this guide aims to outline how to apply for a mortgage if you are pregnant.
Will Being Pregnant Affect My Mortgage Affordability?
No. However, your pregnancy may indirectly affect your mortgage affordability. Lenders typically assess your income, expenses, and debt-to-income ratio to determine the amount you can borrow.
If your pregnancy impacts your income or causes additional expenses, it can influence how much you can afford to borrow. This might happen if you take a significant step back from work, such as dropping your hours from full-time to part-time.
Do I Need to Disclose My Pregnancy During the Mortgage Application?
No, you are not legally obligated to disclose your pregnancy during the mortgage application process. Mortgage lenders cannot discriminate against applicants based on their pregnancy status.
However, you must still provide accurate and honest information about your income, expenses, and any changes in circumstances that may affect your ability to repay the loan. This can include disclosing maternity leave.
Will Maternity Leave Affect My Mortgage Application?
Potentially, yes. Maternity leave can impact your mortgage application as it often involves a temporary reduction in income. Lenders typically consider your average income over a specific period to assess affordability.
If your income decreases during maternity leave, it may affect the amount you can borrow. However, some lenders may consider the guaranteed income you receive during maternity leave.
Can I Include Maternity Pay as Part of My Income for the Mortgage Application?
Yes, sometimes, but it depends on the lender’s policies. Some lenders may consider your maternity pay as part of your income during the mortgage application process, especially if it is guaranteed and you will return to work afterwards.
Should I Wait Until After Giving Birth to Apply for a Mortgage?
You do not necessarily need to wait at all. Waiting until after giving birth to apply for a mortgage may be a practical choice for some individuals. It can allow you to have a clearer picture of your post-pregnancy financial situation, including your income, expenses, and any potential changes. If you are confident in your financial stability and meet the lender’s requirements, there is no specific need to wait.
How Can I Improve My Chances of Getting a Mortgage While Pregnant?
Maintain a Good Credit History
Pay your bills on time, manage your debts responsibly, and check your credit report for any errors. These steps will signal to lenders that you are not a risky borrower, improving your chance of getting approved.
Save for a Larger Deposit
A larger deposit can increase your chances of approval and potentially secure you better mortgage deals. A larger deposit means that lenders are taking less of the risk of lending you large amounts of money.
Consult a Mortgage Broker
Seeking advice from a mortgage broker like Deedle can help you navigate the process and find lenders who are more likely to consider your circumstances.
Gather all necessary documents, such as proof of income, bank statements, and employment contracts, to support your mortgage application. Deedle can then help with your paperwork, as well as negotiating on your behalf to get the best deals.
Can I Apply for a Joint Mortgage With My Partner if I Am Pregnant?
Yes, you can apply for a joint mortgage with your partner if you are pregnant. Applying jointly can increase your combined income and improve your chances of mortgage approval. However, both applicants’ income, credit history, and financial stability will be assessed.
If I Am Currently on Unpaid Maternity Leave, Can I Still Apply for a Mortgage?
Yes, but the chances of getting a mortgage are low, so it is better to wait. If you are on unpaid maternity leave, it may be more challenging to secure a mortgage. Being on unpaid maternity leave can affect your borrowing capacity.
However, you can explore options such as including your partner’s income or seeking a joint mortgage application to improve your chances.
Will Being On Maternity Leave Affect My Creditworthiness or Credit Score?
No. Being on maternity leave itself does not directly affect your creditworthiness. However, if your income has decreased during this period, and you are struggling to pay any existing loans, then it could have a negative impact on your credit score.
Can I Use Maternity Leave as a Valid Reason for a Mortgage Payment Holiday or Deferral?
Not usually, no. Being on maternity leave alone may not qualify as a valid reason for a payment holiday. Mortgage payment holidays or deferrals are typically offered in specific circumstances, such as financial hardship or unexpected events, but not usually maternity leave.
Can I Apply for a Mortgage Before Going on Maternity Leave to Secure a Loan for When I Return to Work?
Yes, but you will need to provide proof of your intended return-to-work date and any changes in income during the maternity leave period. Lenders can consider your normal salary instead of your maternity leave income as long as you can prove you will soon be going back to work.
Can I Apply for a Mortgage While on Adoption or Paternity Leave?
Yes. The exact same conditions exist for those on adoption leave or paternity leave as for those on maternity leave.
Can I Apply for a Mortgage if I Plan to Become a Stay-At-Home Parent After Maternity Leave?
Yes, but if you plan to become a stay-at-home parent after your maternity leave and rely solely on your partner’s income, it may negatively impact your mortgage application. Without your own income, it can affect the loan amount you can borrow. It is still possible to get approved, but your partner may need to have a stronger application.