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Mortgage with a new job

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Mortgage with a new job

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Last reviewed on 10th February 2022

Getting a mortgage with a new job shouldn’t be difficult, just 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?

Getting a mortgage with a new job is possible, but this doesn’t mean to say 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.

It’s possible to get a mortgage under the following circumstances:

  • Applicants that 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, etc)
  • Recently become self-employed

Should I wait to apply for a mortgage?

There are lenders that will consider applicants that have recently started work, so 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.

Can I get a mortgage if I change my job?

It’s possible to get a mortgage when changing jobs. 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 an easy task.

Fortunately, there are lenders that are flexible and may consider you with little employment history. Some lenders offer mortgages to applicants that haven’t even started their employment but do have a contractual job offer. The correct lender will be based on your unique circumstances and an advisor can go through this with you.

Can I get a mortgage with a new job contract?

If you’ve taken on a new contract with the same employer, lenders may class this as a brand new job and may 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, 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 to 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, there are lenders that will consider you for a mortgage with a new contract. The key is to first find lenders who’ll consider newly employed borrowers. The next step is to then demonstrate the income details of your new contract to the lender. This can be done by your employer in the form of a written reference.

ask a mortgage broker

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 towards your mortgage assessment and will only give you credibility.

If you’ve had written confirmation that your salary is to 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. Having 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 on a probationary period. An advisor can then assess your situation and provide you with advice on what the best course of action is.

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 a lot 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 certainly 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 put a pause on your career for the sole purpose of a mortgage, as you can still be approved.

There are lenders that 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 and this 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.

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About the author

Mortgage Advisor | More Articles

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.