Last reviewed on 4th October 2023 by Martin Alexander (Mortgage Advisor)
Getting a mortgage with a new job shouldn’t be difficult as long as your application is structured correctly.
A new job can be the start of something great, but because your employment is relatively new, it can cause concern for some lenders. Nonetheless, an advisor can prepare your application to improve your mortgage chances.
- Can I get a mortgage with a new job?
- How long do I need to be in a job to get a mortgage?
- Should I wait to apply for a mortgage?
- Can I get a mortgage if I change jobs?
- Can I get a mortgage with a new job contract?
- Is it possible to get a mortgage after a pay rise?
- Can I get a mortgage during a probationary period?
- Which lenders accept newly employed applicants?
- Is it possible to remortgage with a new job?
- Do I need a mortgage advisor?
Can I get a mortgage with a new job?
Getting a mortgage with a new job is possible, but this doesn’t mean that you’ll be accepted by every lender. Lenders each have varied criteria, and those that are strict on newly employed applicants are best avoided.
The majority of lenders will require you to have been with your employer for at least three months or have several years of employment history. That being said, there are mortgage lenders that will consider newly employed applicants. There are also lenders that will accept applicants who are yet to start their job but have a formal start date.
It’s possible to get a mortgage with the following employment circumstances:
- Applicants who have recently started a new job
- Renewed an employment contract
- A formal job offer but have not yet started
- A temporary employment contract
- Applying for a mortgage in a probationary period
- Newly qualified in a professional field (doctors, teachers, accountants)
- Recently become self-employed
How long do I need to be in a job to get a mortgage?
Although most lenders require applicants to be working for at least three months, a handful of lenders will accept applicants with a contractual job offer. You’ll need to provide evidence of your new role, including your start date and salary, which is signed off by your new employer.
Some lenders may require you to have at least one payslip from your new employer before you can apply for a mortgage. In comparison, other lenders will decline applicants who haven’t been in their current job for at least six months. This is why it’s important to speak to an expert before approaching a lender, as you’ll need to find a lender that’s suited to your employment circumstances.
Should I wait to apply for a mortgage?
As there are lenders that will consider applicants who have recently started work, you won’t have to wait to apply for a mortgage. Nonetheless, most lenders will require at least three to six months of payslips before a mortgage can be approved. For this reason, waiting to apply for a mortgage could provide you with more options to choose from.
If you need a mortgage immediately and have recently started a new job, waiting simply won’t be an option. You can still qualify for great rates subject to the rest of your application meeting a lender’s criteria. You’ll just need a mortgage advisor to search for eligible lenders suited to your circumstances.
From my experience, it’s worth checking the current rates you’re offered from eligible lenders. You can then compare the rates from lenders that require applicants to be working in their new roles for longer to assess whether it’s worth the wait. If there’s little or no difference, you may decide to apply sooner. On the other hand, you may decide to wait if you can make a substantial saving with other lenders.
Can I get a mortgage if I change jobs?
Yes, it’s possible to get a mortgage when changing jobs. This becomes a lot easier if you’re changing roles in the same sector. For instance, a teacher moving schools or a nurse moving hospitals may have more mortgage options than an applicant starting a role in a completely different industry.
Having an employment history will certainly help your application, but lenders will require details of your previous role in addition to your new job. Lenders can decline applicants who haven’t been with the same employer for at least one year. Some lenders that have very strict criteria often demand even more employment history.
Starting a new job is something to embrace, but it’s important to consider the impact new employment can have on your mortgage application. Lenders base mortgage assessments on risk, and the less time you’ve been in your job, the higher risk you become. This is why getting a mortgage with a new job isn’t always easy.
Can I get a mortgage with a new job contract?
If you’ve taken on a new contract with the same employer, lenders may classify this as a new job and disregard your employment history under the old contract. This can cause issues depending on the lender you’ve applied with. In contrast, if you’ve extended your existing contract or renewed your job role, then certain lenders won’t class this as a new job contract but rather an extension.
Some lenders can decline applicants with new contracts, so do proceed with caution. This largely depends on how underwriters have assessed your new contract. Having a mortgage advisor explain that your contract is with the same employer could help your mortgage chances.
Lenders will also require consecutive payslips. For instance, when calculating affordability, lenders usually request three months’ payslips. Your payslips need to match your contract to satisfy a lender’s judgement on whether or not your documents are accurate. You can certainly improve your application if lenders can view your payslips as continuous despite your change in contracts.
Thankfully, some lenders will consider you for a mortgage with a new contract. The key is first to find lenders who’ll consider newly employed borrowers. The next step is to demonstrate the income details of your new contract to the lender. Your employer can do this in the form of a written reference.
Is it possible to get a mortgage after a pay rise?
If you’re aiming for a maximum mortgage amount but don’t quite meet the affordability, a pay rise may enable you to achieve this. It’s important to note that a pay rise is a huge positive for your mortgage assessment and will only give you credibility.
If you’ve had written confirmation that your salary will be increased on a certain date, then lenders may be able to use the increased salary amount when assessing your income. This can be great, as it often results in the maximum mortgage amount being offered.
It’s important to understand that not every lender will consider the forthcoming increase in salary. This is because you may not have evidence of payslips, and your bank statements won’t reflect your higher salary. Evidence of this will allow you to use your higher income amounts during your affordability assessment.
Can I get a mortgage during a probationary period?
Applying for a mortgage during your probationary period is possible but very difficult. This is because your job is not permanent and could be short-term. If you work as a professional, such as a teacher or accountant for instance, then lenders tend to be more flexible. This is because certain careers will have entry-level roles, which lenders are fully aware of.
It’s recommended to consult a mortgage broker if you’re planning on getting a mortgage during a probationary period. An advisor can then assess your situation and advise you on the best course of action.
Which lenders accept newly employed applicants?
|Mortgage lender||Criteria and eligibility|
|Tipton||Will potentially consider income pending from a new job towards their affordability assessment|
|TSB||If on permanent PAYE, they’ll consider applicants with a formal job offer for up to 3 months before a start date|
|HSBC||May accept with at least one payslip if you want to use income from your new role in your assessment|
|Skipton||Will only consider newly employed applicants in the teaching or medical profession with a valid contract|
|Precise||Require applicants to have been in their employment for at least three months|
|Saffron||Won’t accept applicants based on future employment contracts or probationary periods|
It’s important to note that our advisors work with over 100 mortgage lenders, and each lender has varied criteria. Furthermore, it’s not advised to approach lenders yourself based on the information provided. This is because an assessment is based on a lot more than an applicant’s employment. An advisor can assess your application as a whole to check which lenders you qualify for.
Is it possible to remortgage with a new job?
It certainly is possible to remortgage with a new job. As you already have a mortgage, it’s much easier for lenders to assess how you’ve managed your mortgage repayments. Having repaid your mortgage on time will give you heaps of credibility, but having fallen into financial problems will do the opposite. That said, a new job can show lenders that you’re regaining control of your finances if this is the case.
The majority of lenders should consider your application, and you shouldn’t run into any real difficulty. This of course depends on other factors, such as your credit score and the amount of equity you have. Your reason for a remortgage will also be a factor in whether you’re approved.
If you’re still unsure about getting a mortgage with a new job, you can make an enquiry. A specialist will then call you back to discuss your options.
Do I need a mortgage advisor?
Having a mortgage advisor will help you understand your options with clarity. Starting a new job is a huge change in commitments, and so is a mortgage. Trying to do both at the same time can prove difficult, but this doesn’t mean a mortgage isn’t possible. You also shouldn’t pause your career for the sole purpose of a mortgage, as you can still be approved.
Some lenders will consider newly employed applicants, even if you’ve had little or no employment history before. With this in mind, finding such lenders can prove difficult, which is why mortgage advisors can be helpful. Finding suitable lenders is one part of what an advisor does, but they’ll also search for competitive deals to ensure you’re not overpaying.
You can make an enquiry below to get started. Our experts will then call you to see how they can help.
About the author
Martin is a senior mortgage advisor and has held a CeMAP qualification for over 15 years while also completing an MBA in Global Banking & Finance.