New mothers forced back to work early as mortgage rates soar: ‘I need to be a mum’

Catapulting mortgage payments are forcing women to cut short their maternity leave and head back to work.

Self-employed graphic designer Feride Seferaj thought she and her partner had planned ahead well when they bought their house in October 2021.

The couple, who live in Coventry, had organised their finances with precision, leaving enough aside for the odd holiday and modest treat.

But they soon found their “little extra” depleted by mortgage top-ups. Now, they can no longer even afford food at the end of the month. It means she’s had to return to part-time work just eight weeks since she gave birth to her son.

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And she’s not alone. A survey by campaign group Maternity Action found many UK women have returned to work earlier than they would have liked, or plan to do so, due to the high cost of living and low maternity pay.

Of the 1,394 women who responded in April, 58 per cent said they had abandoned maternity leave early, or planned to, up from 42 per cent in an earlier survey.

And things look set to get worse, with the Bank of England warning on Wednesday that around a million households on fixed-rate mortgages face a £500 hike in their monthly payments by the end of 2026.

It comes after the Bank pushed the UK base interest rate to 5 per cent last month in a bid to tame persistent inflation. Mortgage brokers warned of further pain if the Bank raises the base rate to 6 per cent in the months ahead, as the markets expect it to.

With the ongoing costs of having a newborn and the burden of the rising mortgage, Ms Seferaj felt she had no choice but to return to work.

“I feel like the weight of the world is on my shoulders because I feel like I need to be working and bring in money for my family, but I also need to be a mum. Statutory maternity pay is nowhere near enough to cover our outgoing [costs],” the 33-year-old told The Independent.

“We have to ask our mums for help paying for food. I feel like I’m 15 again, having to rely on my mum to eat,” Ms Seferaj said.

“It has been so stressful. I’ve been breastfeeding while on high alert for the news. I have to be on top of it all.”

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Ms Seferaj and her partner, a mould maker, were on a two-year fixed-rate deal at 3.09 per cent which has now risen to 5.52 per cent. Their monthly mortgage bill has soared from £991 to £1304 – an extra £313 per month.

The couple’s fixed-rate deal was due to end in November but they hesitantly decided to renew two weeks ago, after the interest rate rose again.

“It was a difficult decision to make because we didn’t know what would happen to the interest rates. But we thought it’s better to know what we’re paying now than to not know how much it will end up being in November.”

Ashleigh Martin, a property conveyor from Manchester, has been forced to go back to working full-time after nine months after her mortgage increased by £245 a month.

“I was only getting £700 on statutory maternity pay [a month], but my mortgage has gone up to £744 a month,” the 26-year-old said.

Ms Martin and her partner were previously on a mortgage plan of 1.89 per cent, but it has now surged to 4.98 per cent over five years.

“No one in their right mind can carry on like this. My daughter is only nine-months-old and I’ve had to back to work. She’s not even crawling yet so I’m going to miss that.”

Despite going back to work early, the property conveyor has had to reduce her hours and wage by £300 to balance being a mum.

To make up for the pay cut, Ms Martin said she now has to resort to selling her clothes on Vinted to help with bills.

“We’ve got two young kids who need clothing and food. My four-year-old has autism so he costs more than an average child,” she said. “I haven’t got a clue how I’m going to cope.”

Statutory maternity pay is £172.48 a week or 90 per cent of your weekly earnings, whichever is less, and can be claimed for up to 39 weeks.