So, you’ve just landed a new job, congratulations! But you’re also considering moving homes, we understand that it can be both thrilling and nerve-wracking. You may be wondering how your new job could potentially impact your ability to get a mortgage.
When assessing a mortgage application, stability is a key factor that mortgage lenders consider. While having a lengthy employment history can be beneficial, it’s not always essential.
This guide will provide you with all the information you need to know about getting a mortgage with a new job.
Can I get a mortgage with a new job?
In short, yes! It’s a common misconception that all mortgage lenders require a minimum of three months’ worth of payslips and employment history in your current job.
While some lenders may still have such requirements, many are now more flexible in their approach.
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Whether you’ve just had an offer accepted on a property and you’re ready to go, or you’re simply wondering how much you need to save for a deposit, it’s never too soon to reach out.
Do I need to wait to apply for a mortgage?
In most cases, no! Some lenders may consider an application with just one month of employment history, and some may even go a step further and assess your eligibility based on a contract or job offer letter before you’ve officially started the role.
However, it’s worth noting that having a longer employment history, such as three months or more, can provide you with more options when it comes to mortgage choices.
Do I need to have been in continuous employment?
Lenders may view favorably those who have a continuous employment history with minimal or no employment gaps, including those who are starting new jobs.
However, it’s important to note that it is still possible to obtain a mortgage even if you have no previous employment due to reasons such as studying or taking time off to raise a family. Lenders understand that individuals may have different life circumstances that affect their employment history.
Can I get a mortgage when on probation?
Yes, although some mortgage lenders may require a longer employment history, typically around 3-6 months or more, before considering an application from someone on probation. However, other lenders may be more lenient and may consider applications based on factors such as your overall financial situation.
Having a track history in your current line of work can be a significant factor that may help if you are on probation and applying for a mortgage.
Starting a new profession and getting a mortgage
When switching professions and starting a new job, there are still plenty of mortgage lenders that will consider your application.
However, you may have fewer options compared to if you were switching within the same line of work. Additionally, if you are working on a contract basis, non-permanent employment, or on probation, you may face additional challenges and have fewer options available to you when seeking a mortgage.
How many payslips do mortgage lenders need?
Traditionally, mortgage lenders may have required 3 months’ worth of payslips as a standard requirement. However, in recent times, many lenders have become more understanding and flexible in their approach. Some lenders may now accept just one month’s payslip, while others may even consider a contract or job offer letter up to 3 months prior to your start date.
It’s important to note that if you have variable income, such as overtime, commission, or other variable pay, lenders may have specific requirements. Typically, you may need to wait for at least 3 months for this income to be considered, or even longer if it is received on a quarterly or annual basis.
Which Lenders that consider less than 3 months payslips
Halifax, Nationwide, Santander, NatWest, and Barclays are examples of mainstream mortgage lenders in the UK that may consider basic income for permanent employees with less than 3 months of payslips, subject to meeting other criteria requirements. These lenders have specific policies in place for evaluating mortgage applications from borrowers with shorter employment history or fewer payslips.
What if the new job has a lower salary?
Mortgage lenders typically base affordability on your ability to repay the mortgage over the life of the loan. If your new salary is lower than your previous salary due to switching professions or jobs, the lender will take that into consideration when evaluating your mortgage application. This may affect the loan amount you can qualify for.
What if the new job has a higher salary or a pay rise?
Some mortgage lenders may consider pay raises or increases in income when switching jobs, depending on their policies and guidelines. Some lenders may only consider pay raises that are within a certain percentage, such as 25%, while others may consider the entire increase in income.
Staying in the same profession and getting a mortgage
If you are permanently employed and moving to a new job within the same profession, and you have a track record of employment in that line of work, you should have plenty of options when it comes to obtaining a mortgage loan, even if you are on probation at your new job.
Can I get a mortgage if I’ve just got a second job?
If you’ve just secured a second job, it may be possible to secure a mortgage, although most mortgage lenders require at least 6 months of employment in a second job to consider the income. However, there are exceptions to this rule.
Contract workers or zero-hour contracts
The content of this guide primarily refers to permanent employees. If you are on a fixed-term contract or a zero hours contract, you may require a longer employment history or time within your current role to meet the requirements of most lenders.
For example, for zero-hour contract workers, most lenders may require a minimum of 12 months of employment history. For contract workers, lenders may typically require a minimum period remaining on the contract and/or minimum experience in the field of work
Can I remortgage after starting a new job?
The income criteria and assessment process are generally similar for remortgaging and purchase mortgages.
If your income doesn’t meet the criteria or is not sufficient to obtain a mortgage with other lenders, you may have the option to do a product transfer with your current lender. A product transfer is essentially changing your existing mortgage deal with your current lender without going through a full application process or income checks.
Do I have to tell a mortgage lender if I’ve changed jobs or had a change in pay?
If you already have a mortgage, you generally don’t need to inform your current lender about changes to your income unless you are making amendments to the terms of the mortgage or applying for a new mortgage.
However, if you are in the process of applying for a mortgage and change jobs after submitting the application, it’s important to inform your mortgage lender about the change in your income or employment status.
This allows them to assess your application based on the updated information and ensure that your mortgage terms align with your current financial situation.
How can Strive Mortgages help
If you’re considering a job switch or have already started a new job and are looking to obtain a mortgage, we would be happy to assist you. Our team can provide mortgage advice and guidance on whether it’s possible to secure a mortgage based on your employment history, or if it may be better to wait for a period of time.
For more information on mortgages for contractors, please contact a member of the Strive team, by emailing info@strivemortgages.co.uk or call us on 01273 002697.
