I get asked this one a lot, usually from someone who assumes being on maternity leave rules them out of applying for a mortgage altogether. It doesn't. Lenders have clear processes for this, and NHS staff are actually in a stronger position than most because of how Agenda for Change maternity pay is structured.
Lenders will not automatically use your reduced maternity pay as your income figure. Provided you have a confirmed return to work date and your employer confirms your substantive salary, most lenders will assess you against your normal full time salary rather than whatever you're actually receiving during leave.
This is exactly why an employer reference matters so much in this situation. It's the document that confirms your return date and your salary on return, and it's usually the single thing that makes the difference between a lender using your maternity pay figure or your normal salary.
If you're back at work but only have a payslip or two showing your full salary again, some lenders will still want a short run of payslips before they'll use the full figure. Others are comfortable moving forward as soon as your return is confirmed and your first payslip reflects normal pay. Which route works for you depends entirely on which lender you're placed with, which is why this is one of the situations where getting matched properly makes a real difference to your options.
If you or your partner are taking shared parental leave rather than a full maternity period, the same principle broadly applies. Lenders want to see the confirmed return date and the substantive salary either partner will be earning once leave ends.
Can I apply for a mortgage while on maternity leave?
Yes, and with the right documentation many lenders will assess you on your normal salary rather than your maternity pay.
What if I've only just gone back to work?
Some lenders are comfortable moving forward as soon as your return is confirmed, others want a short run of payslips first.
Being on maternity leave, or having recently returned, does not mean stepping back from a mortgage application. With the right documentation and the right lender, you can be assessed on your full normal salary rather than your maternity pay.
Take our free NHS Mortgage Readiness Quiz and let's talk through your timeline, whether you're currently on leave, about to start, or recently back: start the quiz here.