Maternity Leave and Mortgage Payments

[PrimarilyParented]

this is just an FYI for anyone thinking they will struggle with mortgage payments during maternity leave, that the mortgage payments would swallow their savings or force them to return to work earlier than they wish.

I am about to go on Mat leave and my mortgage provider told me the government charter means I can switch to interest only mortgage payments for 6 months, with no impact on my credit score. Obviously I know I am not paying off the balance during this time and will pay it later, but in my case the mortgage payments will only go up by £5 a month after this 6 month period and it means I can easily take off the 11 months I want to (teacher so returning for new school year) without depleting savings.

I thought it might be helpful to share this as when I told my sibling (also pregnant) they didn’t know and were grateful to hear it’s an option as it means they can take a longer maternity leave.

I'm not pregnant yet but this has been on my mind for if I do get pregnant and go to full term (currently 2 MMCs) so thank you for sharing! This would mean I go from being able to take 4 months to probably 8 or 9 when the time comes 😊

Hello, before anyone jumps into this it's also worth considering what your interest rate is and when your mortgage is up for renewal.

I'm also a teacher and going on MAT leave at the end of this year but my current interest rate is 1.29% with three years left, with new rates around 6%+ it really wouldn't be a good idea for me to take a mortgage holiday.

@TTCJJB everyone needs to figure out their own finances, I totally agree. For me, my cheaper fixed rate ends half way through MAT leave, meaning a huge hike just when my maternity pay decreases, so actually taking the reduced payments for 6 months before then and saving them up means I can afford the increase using these savings until I return to work. I know, ultimately, that I will be paying more, but it’s about being able to stay at home for as long as I want to with my baby. I had to return at 6 months for financial reasons last time and I would really like to stay with my baby for longer this time even if it means paying for that over the remaining mortgage term.