Starting or growing your family is an exciting time, but for many expectant parents and new mums it can also raise questions around finances, particularly when it comes to remortgaging. As household income often changes temporarily during maternity leave, it is important to understand how lenders may assess your application and what steps you can take to prepare.
In this article, we explain how maternity leave can affect remortgaging and outline the practical steps you can take to navigate the process with confidence, helping to ensure you have access to suitable options when the time comes to review your mortgage.
Can I still remortgage while on maternity leave?
Yes, remortgaging is absolutely possible while on maternity leave and the process is no different to if you were in full time employment. However, due to potential changes in your income, the options available to you may be less favourable and your return to work will usually need to be confirmed by your employer.
One option that is commonly considered by homeowners is a product transfer. This product allows you to switch to a new deal with your existing lender and can often be more straightforward than remortgaging with a new lender, as they already have an understanding of your financial position and may not require a full affordability reassessment.
Exploring your options early is important to help ensure you are not automatically moved onto your lender’s standard variable rate (SVR), which is typically higher than fixed or tracker deals and could lead to an increase in your monthly repayments.
Why does maternity leave impact remortgaging?
When you remortgage your property, lenders will reassess your affordability to ensure your repayments remain sustainable. This will typically involve reviewing your household income, regular outgoings, existing financial commitments, credit history and the current value of your property.
During maternity leave, income often reduces, particularly if you move from a full salary to statutory maternity pay or time-limited enhanced maternity pay. As a result, some lenders may base their affordability assessment on your current income at the time of application.
However, most lenders recognise that maternity leave is temporary and will likely consider your pre-maternity salary, provided there is clear evidence that you intend to return to work. This will usually require confirmation of:
- Your agreed return-to-work date.
- Your expected salary upon return.
To support this, lenders typically request documentation such as evidence of maternity pay and a letter from your employer confirming your return date and salary.
Providing this information upfront can help give lenders confidence that any reduction in income is temporary, which may improve the options available to you when remortgaging.
Should I wait to remortgage until I return to work?
Whether you choose to remortgage during maternity leave or wait until you return to work will depend on your individual circumstances.
Waiting until you are back on your pre-maternity salary may provide access to a wider range of lenders and potentially increase your borrowing capacity. However, many lenders will still consider your return-to-work income during maternity leave, provided you can supply the necessary documentation to evidence your expected return to work.
As previously mentioned, delaying your remortgage could also mean being moved onto your lender’s standard variable rate for a period of time. Whether this is an appropriate option for you will depend on your overall financial position and the options available to you at the time.
In some cases, securing a new deal during maternity leave, particularly with a lender who takes your pre-maternity income into account, can provide greater certainty and help you plan ahead with confidence.
If you are unsure which approach may be right for you, our expert mortgage advisers can help you understand your options and help ensure any decisions are aligned with your personal circumstances by reviewing your financial position and lender criteria.
How do I prepare for remortgaging during maternity leave?
If your current deal is due to end while you are on maternity leave, taking a proactive approach can help make the remortgaging process smoother and may improve the options available to you.
This may include:
- Reviewing your mortgage options well in advance of your current deal ending.
- Gathering key documentation, including evidence of your maternity income, confirmation of your return-to-work date from your employer, and your expected salary upon returning to work.
- Considering your household budget both during and after maternity leave to ensure repayments remain sustainable.
- Seeking professional advice to understand which lenders are most suited to your circumstances.
Planning ahead allows you to explore your options without unnecessary time pressure and helps ensure your application is accurate, well-supported, and ready to progress when needed.
How can Cooper Associates Mortgages help?
Remortgaging during maternity leave can feel complex, but with the right preparation and guidance, it can be approached with confidence and clarity. Understanding how lenders assess affordability, what criteria they apply, and the documentation required can help you access suitable mortgage options and avoid unnecessary delays.
If you are expecting a baby, currently on maternity leave, or planning ahead for a future remortgage, our independent mortgage advisers can help you navigate your options and provide clear, fee-free advice tailored to your circumstances.
Get in touch today to book a no-obligation consultation and discover how we can support you through your remortgage, so you can focus on what matters most.
