Lenders offering generous maternity leave mortgages

by Aaron Strutt

Mar 01 2017

Trinity has access to a range of lenders providing up to five times single and joint income mortgages if you are on maternity leave.

As many of the lenders have different acceptance policies, we have reviewed some of the largest banks and the way they assess clients.

NatWest for Intermediaries require applicants to provide their most recent three months’ bank statements and their latest three months’ payslips. The bank will use the applicant's basic salary earned before going on maternity leave to work out the maximum loan size.

NatWest’s underwriters will want confirmation from the client that they intend to return to work, but is unlikely to ask the employer for confirmation.

Barclays will want confirmation of the return to work income, and a letter addressed to the bank from the employer showing the date the applicant is returning to work.

The letter needs to confirm the full income details and working hours. It will use then use these figures to confirm the maximum loan size.

HSBC for Intermediaries: Where the applicant advises they will return to work on the same terms, the last three months' payslips of normal pre-maternity leave income can be used. HSBC may request for a letter from the employer confirming the client intends to go back to work.

The bank will want to know how the applicant intends to maintain the mortgage payments while on maternity leave and it may ask for details about employee benefits, statutory maternity pay, partner’s income and savings.

Santander for Intermediaries ask applicants for their latest payslip or the last payslip before maternity leave showing the full salary.

When an applicant intends to return to work, Santander asks for confirmation they will be working on the same terms as before the start of maternity leave.

If there are changes to their working pattern following parental/maternity leave, it will need a letter from the applicant’s employer confirming their return to work conditions. These rules apply to both applicants.

The bank is also likely to ask about child costs after the client returns to work, and they will affect the affordability calculations.

Comment

Aaron Strutt, product director at Trinity Financial, says: “If you are living in a smaller property and you need more space, you may well be wondering how easy it is to borrow while you are off work.

“Our brokers can confirm exactly how much you can borrow and tell you how much your monthly repayments will be.”

To secure a maternity leave mortgage call Trinity on 020 7016 0790.