If you’re starting a new job soon, we understand how excited you must be, especially if you’re also getting a pay rise.
Admittedly, you might also be experiencing a few ‘new job jitters’ too (it happens to us all) but we’re sure everything will be fine when you finally begin the next chapter on your career journey.
New Job Mortgage
If you’re also thinking about getting a mortgage, you have something else to be excited about, especially if it’s for a new home. However, it’s important to note that your new job could impact your chances of getting a mortgage.
This is because most mortgage lenders prefer applicants to be secure within a job before giving them mortgage approval. As such, you might want to delay your mortgage application until you have been in your new job for a few months.
Of course, if you are interested in getting a mortgage sooner rather than later, it might still be possible for you to get a mortgage early. Keep reading to learn more and book an appointment with an online mortgage advisor at YesCanDo Money if you would like more information.
Can I get a mortgage with a new job?
Yes, you can get a mortgage after starting a new job. However, you might want to wait a little while before you start your mortgage application, which we explain below.
You will want to wait for a couple of months because many lenders want to see at least 3 months of payslips before approving an applicant for a mortgage. This is especially true if you have had a pay rise as your income is a big factor taken into consideration by the lenders. A few lenders will only offer a mortgage to customers who have been in their job role for an extended period of time, however, we know which lenders do.
At YesCanDo Money, we have access to a wide network of lenders so can point you in the direction of those who are most likely to give you a new home loan.
Contact us for a no-obligation chat and benefit from the tailored mortgage advice we can give to you. Whether you just starting a different job or have been in employment for only a few weeks, a mortgage advisor can work with you to improve the changes of having your mortgage approved.
Do I need to wait to apply for a mortgage?
Most lenders will require you to have been in your new job for at least six months before you apply for a mortgage. Most lenders are a little more lenient, however, and may let you apply for a mortgage within a shorter time frame.
We have experience with several specialist lenders that are more lenient with professionals. These would include Doctors, Nurses, Accountants, and Police to name a few.
Lenders will like the fact that you have got a pay rise in this new position. A pay rise shows progression on your career path.
As such, you don’t necessarily need to wait for too long a period before you apply for a mortgage but it can be advantageous if you don’t rush into it. You will have more mortgage options to choose from if you’re prepared to delay your application for a short while and as such, you may be able to access a mortgage with lower monthly payments.
Regardless of the wait time, lenders will also require you to pass their affordability assessment, but this is something we can discuss with you.
Do I need to have been in continuous employment?
It will help your cause if you have been in continuous employment for a number of years. This makes you less of a risk to any lender you approach, whether you’re applying for a mortgage online or popping into a bank on your local high street. This is because lenders often look more favourably at employed applicants with a steady job history.
So, if you have just started a job, your chances of a successful mortgage can be improved if you have a strong track record of employment behind you, be that with the same employer or a number of different employers. If you don’t have a history of continual employment, it might be worth getting a few months under your belt in your new position before you make your application.
Of course, we can provide mortgage advice, no matter your employment status. Whether you are about to start a new job or have only been with your new employer for a few days, a mortgage advisor can discuss all of your options with you.
We can also advise you if you’re self-employed and about to move into a job with an employer, or vice versa.
As we have access to a wide number of lenders on the mortgage market, we will be able to find the right mortgage lender for you. Book an appointment with a mortgage advisor to discuss your available options.
How many payslips do mortgage lenders need?
When applying for a mortgage, you will need proof of income. The standard requirement for this is 3 months’ worth of payslips, two years’ P60 forms, and your recent bank statements. Some lenders will accept fewer payslips but this is generally uncommon.
If you aren’t able to provide 3 months’ worth of payslips (or the amount that the lender stipulates), it might be advisable to delay your mortgage application.
However, if you don’t have payslips available, some lenders will accept written confirmation of your approximate annual income from your employer. Your mortgage lender might also ask to see your contract of employment for evidence of future earnings.
How does a probation period affect a mortgage?
Some jobs come with a probationary period. If this is the case for you, it could be advisable to wait until your probationary period has ended.
This is because some mortgage lenders will decline applications from customers who haven’t yet passed this introductory phase.
However, lender criteria differ between banks and building societies so other lenders might still make it possible for you to get a mortgage before the probation period ends. Your approval will depend on:
- Your employment and earnings history before this point
- Your employment contract
- A proven track record in your chosen industry
- The strength of your application, such as your credit history and the size of your deposit.
If you are still in your probationary period, it is advisable to speak to a specialist mortgage broker, such as ourselves. All the advisors at YesCanDo Money are experienced in helping customers in a wide variety of employment situations and have the ability to assess your situation before deciding the best course of action to take.
It might be best for you to wait as this will offset your own risk – you don’t want to be tied into a mortgage if your job doesn’t extend beyond the probationary period – but we can explore your options with you.
Mortgage new job
If you’re hoping to get a new mortgage, it should be possible when moving to a new job. As mentioned earlier, continuous history of employment can improve your chances although lenders will need details of your previous job role in addition to details about your new job.
If you were only with your previous employer for a year or less, perhaps because you were fired, this could jeopardise your chances of getting a mortgage. Your application might also be turned down if you decide to change jobs for any other reason after only being with the same employer for a short time.
This is because mortgage assessments are based on risk. The less time you have been in a job the higher the risk you are, and this will be considered by lenders when you are moving into new employment. If the mortgage lender doubts your ability to stay with the same employer for an extended period of time, you might struggle to get a mortgage.
Fortunately, some lenders are more flexible and may be willing to lend to you, regardless of your employment history. Provided you have a contractual employment offer when changing jobs, your mortgage application might still be accepted.
Starting a new profession and getting a mortgage
When you are changing jobs to a completely new profession this will make most lenders nervous. Banks and building societies like a track record and starting a new job that is very different from your old one can cause you problems.
The best advice if you have started a new position and are wanting a mortgage is to speak to a mortgage advisor. They will be able to speak to different lenders to find one that will be willing to consider you and your individual situation.
Staying in the same profession and getting a mortgage
If you are changing employers however keeping the same profession or job role the majority of lenders will accept you without any major concerns. The closer your new job is to your old job the fewer issues you will have. Again our advice is to speak to a mortgage broker.
If you are starting a job with a lower salary, this will affect how much lenders are willing to offer you. Some mortgage lenders will limit the amount they are willing to lend to you if your salary decreases although there are a few mortgage providers lending on this basis.
If you are starting a new position with a higher salary or a pay rise, this will also affect how much lenders will be willing to offer you. Thankfully, this will work in your favour as the more money you earn, the more lenders will be willing to offer you.
You will need to prove your new income, however, perhaps in the form of your new contract, as banks and building societies need evidence of potential earnings.
Similarly, you may be able to borrow more money if you get a pay rise from your existing employer. So, if you are changing jobs via a promotion, for example, this will improve your chances of getting a larger mortgage. You will have to prove that you have taken on a new job role, alongside information about any expected pay rises, using your new contract or another piece of evidence from your employer.
If you have already secured a mortgage and are making your monthly mortgage repayments, you don’t necessarily need to tell your existing lender that you are planning on moving to a new career.
You don’t need to tell them that you have been made redundant either, provided you are confident that you will be able to move into a new position quickly.
If you are staying with the same employer but getting a new contract, there is also no need to inform your lender of this.
However, you will need to tell your existing lender if you decide to remortgage with them as they will need updated information about your employment status. You should also tell your lender if the changes in your circumstances affect your ability to pay your mortgage payments.
We have years of experience with our clients not knowing whether to change careers or not because their remortgage is due for renewal. As a specialist broker in new job mortgages our guidance on this is to talk to us first. There is a strong chance you will be able to remortgage however it depends on a few factors on the cause of action you need to take. Talk to our remortgage experts for help and guidance.
The Bottom Line
The bottom line is this: Whether you have recently started a new position or have just received a formal job offer, you should be able to get a mortgage with a different job.
You should also be able to get a mortgage in the following circumstances:
- You are renewing an employment contract
- You are in the probationary period of a new position
- You are moving into employment after being self-employed
However, as lenders have different eligibility criteria, there will be those who turn you down if you have only just started a new job. And not every lender will accept your application if you have a patchy employment history.
Banks and building societies will also take your credit history and rating into account, your expenditure, and your other debts, and if you fail their affordability tests, your application may be rejected.
But fear not as we are here to help. Your chances of a successful application can be improved if you get the right advice from an expert mortgage advisor so talk to us to learn more. Whether you’re in full-time employment or self-employment, about to change jobs, or have just started a new job, we will give you all the help you need as you embark on your mortgage journey.
As mortgage brokers, we have decades of experience getting mortgages soon after a client has recently changed jobs. It’s our professional opinion that it’s just about matching your change of job with a mortgage lender that understands you. Each mortgage lender has different underwriting criteria and therefore it’s all about matching the right lender to your recent or pending job change. – Stephen Roberts (Director)
How a mortgage broker can help with a mortgage application
As a whole of market mortgage broker, we have access to a wide range of high-street lenders, as well as specialist lenders, so no matter your circumstances, we will be able to find mortgages with the lowest mortgage repayments
Our help goes beyond the search for a great mortgage. We also help our customers with their mortgage applications and give them advice on a wide range of different mortgage subjects. We also have a specialist finance team on hand to give advice on life insurance and mortgage protection.
We do this and so much more for FREE, so if you’re hoping to get a mortgage with a different job, be assured that we are here to help you during this exciting chapter of your life.
To learn more, get in touch with an online mortgage advisor at YesCanDo Money by using the contact details on our website. With the help of an exclusive mortgage expert, you will be on your way to getting the best mortgage deal in no time at all!
The bottom line here is that it’s possible to get a mortgage if you’ve just started a new job, are in a probationary period or have just changed roles with your current employer. But there’s a major caveat here – some mortgage lenders will decline you outright under these circumstances, and others might feel that you’re a risk and hike up their rates.
Don’t let this put you off, though, as help is readily available. There are mortgage brokers in our network who specialise in borrowers who’ve just started a new job, and they can make sure you find a lender who’s more than happy to approve people just like you, with the best possible interest rates, too.
Related reading: Our advisors are often asked whether getting a mortgage when on maternity leave would be an issue.