As mortgage advisers, we often get asked “Can you get a mortgage while on parental leave?”
The answer can be YES but there are certain criteria you must meet and, as is often the case, it can depend on which bank you are working with.
If you are able to confirm that you are returning to work within the next 3 months (sometimes we can stretch this out another month or so) then each main bank will be able to include your income in the application.
But what if you have only just started your paternity leave, you want to buy a house right now, and YOU know that you are capable of meeting the loan repayments?
Well, there is one bank that will accept your income if you are more than 3 months from returning to work. You must be a permanent employee and have worked for your current employer for >12 months prior to commencing parental leave. We just need to provide the bank with some extra info like when you are intending to return to work and how you will cover the repayments while on parental leave.
This is a great solution for those families who fall under this scenario and may have otherwise (frustratingly) struggled to get lending.
So, in a situation where your current bank says no to lending while you’re on parental leave, the beauty of working with a mortgage adviser is that we may be able to find you one that says YES.