Getting a mortgage while on maternity leave - help please

[4sandie]

We are due to buy a house next year(once Covid situation is pretty settled). I've just found out that I'm pregnant and it works out that I will be on maternity leave while we're going through the process of applying for a mortgage,etc. I know that lenders ask for at least 3 months worth of payslips and I'm worried that because I will only be getting SMP which works out about £500/£600 a month, we will not be able to get the house we want. I've tried to google this but only showing results about self-employed people, which doesn't apply to me. Does anyone know how it works and whether they will take my normal salary into account or my SMP? Thanks all!

I'm in the same position and from what I have found mortgage companies can't discriminate against you because you are pregnant.
What they normally request is proof from your employer that you will be returning to work and on what hours and also the dates of your maternity leave to and from.
Sometimes they may also want to see proof of how you will cover the mortgage until you return to work, so savings or partners wages etc....

They'll take the 3 payslips before mat leave or require a letter from your work to confirm details.

Agree with PP. My work provided written confirmation that if I was to return to work on X hours my salary would be X.

I looked into this myself not long ago and the lending criteria of several big banks says they will take your last 3 pre maternity leave payslips, and several say they won’t contact your work or ask about your return. I can’t speak for how Covid has affected the whole thing, but you should be ok

I sent my last 3 payslips before Mat leave and had to get my employer to write a letter to confirm my return date and salary. Honestly it's fine. They may ask things like if you are going to be paying childcare, if so, how much per month.

Hi all, I knew I would get some answers on here so thanks so much for the info! That really does put my mind at ease

What they "should " do, and what they actually do, is sometimes far apart. I had a horrible experience with Nationwide, they said that because I was going to have a child NOTHING I earned could be taken into account, because I could lose my job and would have to pay for nursery ,so they then said my Childcare fees would be counted AGAINST me, like negative income. It was insane. I showed them my Employment Contract quoting three months' notice vs my Nursery Ts and Cs stating 1 month's notice, pointing out that if I couldn't find another job inside the 3 months (I work in finance, highly employable) then I would simply quit the nursery with plenty of time to spare. And, as we could easily afford our mortgage on my husband's salary alone, my income was only ever going to be used for overpayments etc.

Nationwide refused to accept this - which was utterly absurd - and told me I couldnt have a mortgage. I argued, and argued, and complained, but they dragged their feet until I was at of my house falling through.

I should have gone to the Ombudsmen or someone and complained, Nationwide behaved appallingly. I got a written letter of apology from a senior manager in the end but nothing else. I almost lost the house I desperately wanted. Ended up with HSBC who were wonderful, saw my financials with OH and said "sure, you can have a mortgage" - agreement in principle took just a few minutes.

I would not touch Nationwide EVER again, it was the worst anti women discrimination I ever encountered and I have been bitter about it for 5 years.

@HathorX oh my God!! That sounds so stressful, isn't that type of sexism/discrimination illegal Glad you got it sorted in the end!!

Hathorx. I had the same problem with Nationwide and we already had a mortgage with them and just needed a bigger house. I was on maternity leave and already had my return to work date confirmed in writing by my employer (of 20 years I might add) This was my second child so I had already returned to the company once. I only work 15 hours a week so not even the main earner, but my maternity leave seemed to cause Nationwide a big problem. After all the stress we eventual got what we wanted but it put me off ever getting or switching to another mortgage for life. Funnily enough my partner who had worked for the same co for over 20y got made redundant 2 months after we moved. Nationwide have some of the best rates but boy do the make you pay!
We have over 120k equity in our house and they still won't lend us additional money to do a few jobs on the property and clear some debt. The word arseholes spring to mind!