Last Updated on 4th September 2020
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 structure your application to improve your chances of mortgage approval.
A mortgage with a new job, is it possible?
Securing a mortgage with a new job is possible for the below scenarios:
- Newly employed applicants
- Employed applicants who have just renewed a contract
- Applicants who have a job offer but have not yet started
- Employed applicants who have not yet got a permanent contract
- Employed on a temporary contract
- Newly qualified professionals (doctors, teachers, accountants, etc)
- Newly self-employed applicants
A mortgage when changing jobs
Lenders can decline applicants who haven’t been with the same employer for at least one year. 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 effect new employment can have on your mortgage application. Lenders base assessments on risk. 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 do consider applicants with little employment history. Some lenders offer mortgages to applicants who haven’t even started their employment but do have a contractual job offer. It’s vital to apply with the right lender from the start. The correct lender will be based on your unique circumstances and an advisor can go through this with you.
A mortgage with a new contract
Having a new employment contract shouldn’t pose too many problems. Some lenders can decline applicants with new contracts, so do proceed with caution. Even if you’ve taken on a new contract with the same employer, lenders can class this as a brand new job and may disregard your employment history under the old contract.
When assessing affordability, lenders usually request three month’s payslips. Payslips need to match your contract to satisfy a lender’s judgement on whether or not the documents are accurate. Thankfully, there are lenders that will consider mortgage approval when borrowers have taken on a new contract. The key is to first find lenders who’ll consider new contract borrowers. The next step is to then demonstrate the income details of your new contract to the lender. This can be done via your employer in the form of a written reference.
A mortgage with a future pay rise
If you’re aiming for a maximum amount mortgage but don’t quite meet the affordability, a pay rise may enable you to achieve this. 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, subject to the rest of your application.
As lender criteria vary, not every lender will consider the forthcoming increase in salary. This is because you won’t have evidence of payslips and your bank statements won’t reflect your higher salary. Our advisors understand lender criteria as they’re placing mortgages constantly to lenders across the UK.
A mortgage on a probationary period
Applying for a mortgage whilst on a 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, doctor, accountant, etc, then lenders tend to be more flexible.
We’d highly advise you to consult a mortgage broker if you’re planning on getting a mortgage whilst on a probationary period. An advisor can then assess your situation and provide you with impartial advice on what the best course of action is.
Remortgaging with a new job
Remortgaging with a new job can be quite simple. As you already have a mortgage, it’s a lot easier for lenders to assess how you’ve conducted your mortgage repayments. The majority of lenders should consider your application, subject to the rest of your criteria, such as credit score and equity in the property.
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.