Can You Get a Mortgage While on Paternity Leave?

Securing a mortgage on paternity leave can be more complex, especially when you’re taking the time off to care for a newborn and managing all the challenges that come with early parenthood.

The good news – with the right preparation and documentation in place, it is absolutely possible to get a mortgage while on paternity leave.

So, how can I get a mortgage while on paternity leave?

In this article, we explore exactly how paternity leave will impact your mortgage application, what lenders will be looking for, and the best preparation tips that can help you secure the mortgage deal that matches your needs. Let’s begin.

Can You Get Mortgage Approval While on Paternity Leave?

The short answer: Yes, you can still get approved for a mortgage while on paternity leave.

It’s important to note that lenders typically do not base affordability calculations on statutory paternity pay (SPP), unless this is your only source of income.

If you were earning a regular salary before going on paternity leave, lenders will seek confirmation of your planned return to work – whether full-time or part-time – along with details of your expected income and return date.

Therefore, affordability assessments will generally be based on your income once you have returned to work, rather than your reduced pay during leave.

Just like any other mortgage application, lenders need to be confident that you can afford the repayments over the long term. This means they will carefully consider your current circumstances alongside your future earning potential.

Here’s how the approval process works:

• Mortgage Approval Time

Mortgage approval can typically take between four to six weeks, depending on your chosen lender, the complexity of your financial situation, and the provision of all necessary documentation.

• Lender’s Affordability Assessment

Depending on your chosen lender, they will usually assess either your current income or your anticipated post-leave salary in their affordability assessments. As such, if you’re on reduced pay during paternity leave, some lenders may base their calculations on that lower figure – directly affecting how much you would be able to borrow.

However, there are lenders that can offer more flexible terms and may consider your full contracted salary, particularly if you have a clear return-to-work date and supporting documentation.

• Employer Confirmation of Your Return-to-Work

A letter from your employer confirming your return-to-work details can often boost your mortgage approval and even your affordability assessment.

This letter should include your planned return date, your contracted hours, and your post-leave salary. Ultimately, this confirmation will reassure lenders that your current income dip is only temporary and that you’ll soon be back to full earning capacity, which strengthens your application.

Do Lenders Treat Paternity Leave Applicants Differently?

While lenders do not deliberately penalise applicants who are on paternity leave, they will look more closely at how your reduced income fits into the overall picture.

In reality, the main concern for lenders is to ensure that you can reliably repay the mortgage loan amount at the end of each month. Naturally, paternity leave can often cause a temporary drop in income and is paired with the added financial cost of caring for a newborn.

Ultimately, lenders will want to know: Will the temporary pay drop impact your ability to meet monthly payments?

In order to reassure lenders that your temporary drop in pay will not hinder your ability to repay your mortgage payments, most lenders will ask for:

• The type of paternity pay you’re receiving (full, partial, or statutory)
• Confirmation of when you’re returning to work and at what salary
• Details of any new or increased outgoings (e.g. childcare costs)

As long as you can show that your financial position will return to normal and is manageable in the interim, many lenders will consider your application just as they would any other.

Which Lenders Are Most Flexible When You’re on Paternity Leave?

As with any mortgage application, the lender you choose can make a significant difference to the outcome of both your deal and/or mortgage approval.

Each lender will have their own unique affordability checks, and you will find that some can be much more accommodating with a more flexible criteria when it comes to assessing income that’s temporarily reduced.

With a focus on the most popular high-street banks – and at the current time of writing – lenders like Santander can offer a more flexible underwriting process. Specifically, Santander’s flexible mortgage range may use your post-leave income figure as part of their affordability calculations, as long as your return date is confirmed in writing by your employer.

Similarly, NatWest shares a supportive  criteria as long as you have a clearly defined return-to-work date. As such, they may accept your full contracted salary when calculating how much you can borrow, even if you’re currently on reduced pay.

On the other hand, specialist lenders can often be a better option for those who have unique or difficult financial challenges. Unlike high street banks, which typically follow a more rigid ‘one size fits all’ affordability model, specialist mortgage providers tend to offer a more flexible criteria. As such, there may be specialist lenders who could consider your full contracted salary – rather than your current leave pay – provided you have documentation to support your return-to-work plans.

However, because lender policies can change, it is vital that you seek advice specific to your financial circumstances. At Boon Brokers, we offer fee-free, whole-of-market mortgage advice, helping you compare all the latest mortgage products that are available to you.

Our dedicated mortgage advisers take the time to understand your specific needs to match you with a lender that fits your needs.

How Can You Strengthen Your Mortgage Application During Paternity Leave?

The key to improving your chances of mortgage approval during paternity leave is careful preparation and presenting your application in the strongest possible light.

In short: Lenders want to be confident that your income is stable and that your finances will remain manageable once your leave ends.

Here’s a step-by-step guide to help strengthen your mortgage application during paternity leave:

Step 1: Obtain a Return-to-Work Letter from Your Employer

One of the most important documents you can provide – and a document that many lenders will request – is a formal letter from your employer, confirming the details of your return to work.

This letter should clearly state:

• Your expected return date
• Your contracted working hours
• Your salary once you return

This documentation can help reassure lenders that your currently reduced income will only be temporary, and that you will return to full earning capacity at the end of your paternity leave.

Step 2: Gather Key Payslips and Income Evidence

Make sure that you provide a holistic picture to your chosen lender. By providing evidence of your financial history both before and during paternity leave can help bolster your application. As such, your application should include:

• Payslips from the three to six months before your paternity leave
• Any payslips received during your leave, even if they reflect statutory pay

This comparison can help lenders understand your typical income and confirms that your reduced earnings are not permanent.

Step 3: Highlight Any Savings or Financial Buffers

If you’ve built up savings for a rainy day, make sure you highlight that this income can be used to cover the period of reduced income. This shows lenders that you’ve planned ahead and are financially prepared to manage mortgage repayments. Savings can also help demonstrate:

• Emergency fund availability
• Your ability to manage household and childcare costs
• General financial responsibility and affordability

Step 4: Document Your Outgoings and Budget

A lender’s main concern is that you will be able to afford your mortgage payments within your overall monthly budget. Providing a clear breakdown of your available monthly funds can help build lender confidence in your ability to manage repayments. This breakdown should include:

• Household expenses
• Childcare costs
• Any new financial responsibilities since your child’s arrival

If you’ve adjusted your budget in preparation for leave, highlight those changes. It shows forward planning and a proactive approach to affordability.

Step 5: Work with a Whole-of-Market Mortgage Broker

Navigating the mortgage world and each lender’s criteria while on paternity leave can be complex and overwhelming – especially when income isn’t straightforward. Working with a trusted whole-of-market mortgage broker can help take the stress out of the process and streamline your application. A reputable mortgage broker like Boon Brokers can:

• Identify lenders who are more flexible with parental leave
• Present your documents in the most favourable way
• Advise on how to maximise your borrowing potential

At Boon Brokers, we provide fee-free, whole-of-market advice, helping you find the most suitable mortgage deals. Our team specialises in guiding clients through more complex applications, and we’ll manage the entire process for you from start to finish.

How Should You Prepare for a Mortgage Before Taking Paternity Leave?

The best way to prepare for a mortgage while on paternity leave is much like any other mortgage application. Ideally, however, you should apply for a mortgage while still receiving your full salary, as this will often be reflected more favourably in affordability calculations.

To prepare effectively, focus on:

• Paying off debts like credit cards or loans
• Improving your credit score by keeping payments up to date
• Building up savings to act as a safety net while your income is reduced
• Gathering key documents such as payslips, P60s, and bank statements

You may also want to speak to your HR department to confirm your return-to-work details in writing before you apply. This can help save time and reduce any tedious back-and-forth later in the process.

If you’re unsure how to prepare for a mortgage application, or need guidance on how to prepare for mortgage pre-approval, working with a trusted mortgage broker can help guide you through each step.

At Boon Brokers, our dedicated mortgage advisers can help you complete your mortgage application from start-to-finish. We’re proud to offer expert fee-free mortgage advice that is tailored to your needs.

Which Documents Do You Need for a Mortgage While on Paternity Leave?

Submitting the right documentation is vital for any mortgage application, but when applying for a mortgage during paternity leave you may need to include additional evidence.

Here’s an overview of everything a lenders will typically ask for:

• Bank statements from the last 3 – 6 months
• Payslips from before and during your leave
• A letter from your employer confirming your return date and post-leave salary
• Your most recent P60
• Evidence of any secondary income such as bonuses, commissions, or freelance work
• Information about childcare costs or benefits

If you’re asking: “What documents do I need for a mortgage?”, then working with a regulated mortgage broker – like Boon Brokers – can help ensure everything is in order and nothing is missed out.

Can a Mortgage Broker Help You Get Better Deals on Paternity Leave?

Yes. Working with a regulated whole-of-market mortgage broker can significantly enhance your chances of approval and provide access to a wider range of competitive mortgage products.

Whole-of-market brokers have access to a wide range of lenders, including many who don’t advertise their mortgage products directly to the public. Similarly, some lenders only work through associated brokers and intermediaries, which means by working with a broker, you could gain access to exclusive deals and criteria that wouldn’t be available through a standard bank branch or online application.

Perhaps most importantly, mortgage brokers understand how different lenders view applications. An experienced broker will know which lenders are likely to take your future income into account, which documents to prioritise, and how best to prepare your application for your chosen lender.

Additionally, the submission of the application process can also be streamlined when handled by a broker. They will be able to quickly identify any missing documents, help prepare documentation, and personally liaise with lender queries on your behalf – saving you time and reducing stress.

At Boon Brokers, our broker team specialises in helping clients secure mortgages in unique situations, including those applying during parental leave. We offer whole-of-market, fee-free advice, and so if you’re unsure where to begin or worried about approval, contact our expert broker team today.