Yes, you can absolutely remortgage on maternity leave. Whether you’re approved or not will depend on your affordability, not whether you are on leave. Different lenders calculate in different ways, with some counting statutory maternity pay, which may reduce your affordability. Most lenders, however, will be happy use your full salary if you can share your return-to-work plan. This guide will cover all the details you need to know about remortgaging whilst on maternity leave.
“Being on maternity leave shouldn’t stop you getting a great mortgage deal. Lenders see it all the time, and many are happy to look at your return-to-work salary rather than just your maternity pay.
The key is to plan ahead. Ask your employer for a letter confirming your return date and pay, and think about locking in a new deal up to six months before your current one ends. That way you can enjoy those precious early months without worrying about your mortgage. A good adviser will do the legwork for you and find a lender who’s right for your family.”
Rachel Geddes
Strategic Lender Relationships Director
Can you remortgage while on maternity leave?
Yes, you can. Remortgaging on maternity leave is very doable, and lots of parents do it every year.
Being on maternity leave doesn’t stop you getting a remortgage, and lenders can’t decline you just because you’re pregnant, on leave or planning a family. Pregnancy and maternity are protected characteristics under the Equality Act 2010, which means lenders must treat you fairly.
Why maternity leave affects affordability
Maternity leave affordability comes down to the temporary change in income, not the leave itself. Statutory Maternity Pay (SMP) is lower than your usual salary, and some lenders will use this income to work out if you can afford your mortgage payments.
So, how does maternity leave affect remortgaging? It mainly changes how lenders look at your income, and only for a short time. However, many lenders recognise that maternity leave is temporary.
Use our Remortgage Calculator to help you work out how much you might be able to remortgage for.
How lender approaches differ
Mortgage lenders don’t always match up with their approach to approving remortgages for women on maternity leave. For example:
Some use your full return to work salary if you can provide a letter confirming your return date and pay.
Some use a proportion of your return salary.
Some use your current maternity pay, which can reduce borrowing temporarily.
Speaking with a mortgage adviser can help. They can match you with lenders that are more flexible.
Remortgaging on paternity, shared parental or adoption leave
The same ideas apply if you’re on paternity, shared parental or adoption leave. Lenders look at your pay now, your return date and your salary after you’re back. It’s worth checking what each lender will accept.
How lenders work out your income on maternity leave
Lenders want to understand your long-term financial position, not just the temporary dip in income.
Using your return-to-work salary
Many lenders will use your normal salary if you’re due back at work.
To do this, they need evidence of:
Your return-to-work date
Your contracted hours
Your salary when you return
If you are returning on the same terms, lenders may also use payslips from before your leave.
Statutory vs enhanced maternity pay
Statutory maternity pay (SMP) is paid for up to 39 weeks. You get 90% of your average weekly earnings for the first six weeks. After that, it’s £194.32 a week, or 90% of your earnings if that’s less.
Some employers pay more, which is called ‘enhanced maternity pay’ but this varies by employer.
Does maternity pay count for a mortgage? In a nutshell, yes, but lenders treat it differently.
Returning part-time or on reduced hours
Planning to go back part-time? Lenders will usually use your new hours and pay. It’s worth having this confirmed in writing, just so your adviser can work out what you could borrow.
Childcare costs and affordability
A new baby can mean new costs. Lenders may count childcare, along with your other outgoings, when they work out affordability. Be ready to share what you expect to spend. Planning ahead can help you avoid surprises.
What documents will you need?
Lenders will usually ask for your last three months’ payslips from before you went on leave. These show your normal pay.
This is often the most important document. A return-to-work letter for your mortgage should say:
When you’re coming back
Your job title
Your salary
Your hours
Ask your employer well ahead of time. It can take a little while.
Expect to share bank statements, plus proof of your maternity pay, such as payslips from your leave. Lenders use these to see what’s coming in now.
Should you tell your lender you’re pregnant or on maternity leave?
Yes. Honesty matters. If you do not disclose maternity leave, it can cause problems later in the process.
If a lender asks and you don’t tell the truth, that’s called ‘non-disclosure’. At worst, it could put your mortgage at risk. The good news is the law protects you from being treated unfairly because of pregnancy or maternity.
So, should you tell your lender you’re pregnant? If they ask about your situation, yes. Your adviser can talk you through what to share and when.
How a new dependant affects affordability
A new child may change how a lender looks at your budget. Lenders often count dependants when they work out your costs. It doesn’t mean you won’t get a mortgage, it simply helps them get the full picture. So don’t put it off if your deal is ending.
Product transfer vs remortgaging with a new lender
If your fixed rate is ending, you have two main options:
1. Switching with the same lender (product transfer)
A product transfer means moving to a new deal with your current lender. It’s often quick and simple because they’re already familiar with your income and outgoings. Many lenders don’t need a new affordability check, as long as you’re not borrowing more. This means a product transfer on maternity leave is often the easiest path.
2. Switching to a different lender (remortgaging)
Remortgaging to a new lender can sometimes mean better rates, but it usually involves a full affordability check. You will need to provide documents showing your return-to-work plans. Some people choose to wait until they’re back at work.
A mortgage adviser can compare both options for you.
Borrowing more or changing your term
If you want to borrow more or change your mortgage term, even your current lender may require a full affordability check.
Borrowing more will mean higher monthly payments. Shortening the term will also mean your payments will go up. A longer term will mean your payments will go down but you’ll pay more interest overall.
Your mortgage adviser can go through the numbers with you and answer any questions you might have.
Use our Remortgage Calculator to get a feel for what your payments could look like.
Speak to a mortgage adviser to see your remortgage options
Remortgaging on maternity leave is absolutely possible. The key is understanding how lenders work out your income and having the right documents ready. Whether you want to switch deals, borrow more or simply avoid your lender’s SVR, an adviser can help you compare your options and find a deal that fits your plans.
Something to bear in mind...
Frequently asked questions
Yes, but it depends on the lender. Some count your maternity pay, some use your return-to-work salary, and others use a mix. A mortgage adviser can help you find the right fit.
Often, yes. You could switch to a lower rate, or ask your lender about temporary options like a term extension or a short interest-only period. If you want to lower your mortgage payments on maternity leave, speak to your lender early. Be aware that lower payments now may cost more in interest over time.
Yes. If you’re self-employed, you may get Maternity Allowance instead of SMP. This is usually between £27 and £194.32 a week, depending on your National Insurance contributions.
A self-employed maternity leave mortgage works in a similar way. Lenders usually look at your accounts or tax returns, often covering two to three years. A specialist adviser can help find lenders who suit you.
Yes, it’s often possible. Porting means taking your mortgage to a new home. Your lender will usually do an affordability check. If you port a mortgage on maternity leave, a return-to-work letter can help.
Yes. Lenders cannot decline you because you are pregnant – it’s illegal under the Equality Act 2010. Instead, they focus on your affordability and your return-to-work plans.
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