Getting a mortgage with a new job doesn’t have to be difficult. You just need to ensure your application is structured correctly. A new job can be an exciting new beginning, but with the employment being new, it can be a cause for concern for some lenders. By enlisting the help of an experienced adviser, your application can be structured in the best possible way to maximise your chances of mortgage approval.
Is it possible to get a mortgage with a new job?
Securing a mortgage with a new job is entirely possible in the following scenarios:
- You are newly-employed
- You are employed and have recently renewed a contract
- You have been offered a job but have not yet started
- You are employed but don’t yet have a permanent contract
- You’re employed on a temporary contract
- You’re a newly-qualified professional, such as a doctor or a teacher
- You have recently become self-employed
Can I get a mortgage if I have started a new job?
Lenders will sometimes decline a mortgage application from someone who has not been with the same employer for at least one year.
Starting a new job is a positive time, but it can have an impact on your mortgage application. Lenders’ assessments are based on risk, and the less time you’ve been in your job, the higher the risk is perceived to be. This is why it can be challenging to get a mortgage with a new job.
Fortunately, there are lenders out there who are more flexible and will consider applicants with little employment history. Some lenders will even offer a mortgage to an applicant who has received a contractual job offer but has not yet started their new job. The key is to apply with the right lender from the outset. Identifying who the right lender is will depend on your unique circumstances – an adviser can help you with this process.
Can I get a mortgage with a new contract
Having a new contract of employment shouldn’t cause many problems for your mortgage application. However, some lenders will decline applicants with new contracts so proceed carefully. Even if your new contract has been taken on with the same employer, some lenders will class it as a new job and your employment history under the old contract will be disregarded.
When affordability is being assessed, lenders usually request three months of payslips. These payslips must match your contract in order to satisfy the lender that the documents are accurate. There are lenders who will consider approving a mortgage for borrowers who have taken on a new contract. It is essential to find lenders who consider new contract borrowers before you start applying. You must then work on demonstrating the income details of your new contract – your employer can help with this by providing a written reference.
Getting a mortgage with a future pay rise
If you’re aiming to get the biggest mortgage you can but fall a little short on the affordability, a pay rise could help you be successful. If you have received written confirmation that your salary will increase on a specific date, lenders may be willing to use that increased salary when they assess your income. This can be fantastic, as it often means you get offered the maximum mortgage amount (so long as the rest of your application is in order).
As the criteria of lenders vary, not all lenders will consider a forthcoming salary increase. This is because you won’t be able to provide evidence of payslips and bank statements that demonstrate this higher salary. The advisers at Think Plutus understand the criteria of different mortgage lenders, so we can help you place your application with the right provider.
Getting a mortgage during a probationary period
It is possible to apply for a mortgage whilst on a probationary period, but it is very challenging. Your job is not yet considered permanent and may be viewed as short-term. If you are working as a professional, such as a doctor, teacher or accountant, then lenders may take a more flexible approach.
We strongly recommend that you consult a mortgage adviser if you hope to secure a mortgage whilst on a probationary period. An adviser can assess your situation thoroughly and provide impartial advice on the best course of action.
Remortgaging with a new job
The process of remortgaging with a new job can actually be fairly simple. As you already have a mortgage, lenders have strong evidence about the way you conduct your mortgage repayments. Most lenders will consider your application but will need to perform the usual checks such as credit score and equity in the property.
If you still have questions about getting a mortgage with a new job, please contact Think Plutus today. You will be able to speak to a specialist who can help you understand your options.