Starting a new job doesn’t have to prevent you from getting a mortgage, although it might make things a little more tricky. That’s where a specialist mortgage broker can smooth your path to a successful application.
Changing jobs could create a stumbling block to getting a mortgage with some lenders, but there are plenty of mortgage lenders you can still approach.
Simmonds Mortgage Services has years of experience helping buyers through complex finances and varying lending criteria. We assess your individual circumstances to find the perfect fit for you. Keep reading as we explore what can happen to your mortgage application if you switch jobs or have an upcoming pay rise. And for personalised mortgage advice, contact us to get started.
How does getting a new job affect your mortgage application?
When you start a new job, some mortgage lenders may perceive you as a higher-risk borrower. This is because your position in a new company may not be as secure as a long-term employee, and it may be more difficult for you to provide evidence of your current salary to meet eligibility criteria.
Most lenders want to see a stable work history for reassurance that your income is reliable enough to cover the monthly mortgage repayments. If your job situation changes just before applying for a mortgage, it can make the process more challenging with lenders. Some are flexible, while others, like high street lenders, can be stricter.
Do mortgage lenders look at different careers and job titles?
Your lender will always want to know about your job role or title, whether you are working for the same company, a new employer in the same industry, or in a new industry completely.
Lenders will be concerned with your financial situation and your ability to keep up with repayments.
That said, it’s possible that your lender might be interested in your career choice or the nature of your occupation if you have recently changed careers. Not every lender will ask about this, but some occupations are viewed as more secure than others, for example, a doctor or a solicitor.
How do lenders verify your employment status?
Lenders will want to see evidence that your new job is genuine, stable, and ongoing. The list of documents they need will vary depending on your situation and the lender’s assessment criteria.
When applying for a mortgage after changing jobs, you could be asked for any of the following:
- A signed employment contract to confirm your start date and salary
- A recent job offer letter or employer reference
- Recent payslips (if you’ve already been paid in your new role)
- Bank statements to prove income
- Tax returns and other financial documents if you’re self-employed
This is one part of the mortgage application process where it pays to have a mortgage broker who can help you find a lender with more flexible criteria. They’ll also handle all the back-and-forth with the chosen lender, so you can focus on your future property.
Should I wait a few months after getting a new job to apply for a mortgage?
Some lenders may reject your mortgage application if you’ve started a new job just before applying.
If you are in a probationary period, this can affect your ability to get a mortgage offer. A probationary period creates concern over long-term job stability, so most mortgage lenders prefer you to apply after you’ve completed it (usually 3-6 months).
However, many lenders ignore probationary periods altogether.
Even without a probationary period, most lenders want to see at least 3 months of payslips as evidence of a steady income. This can be frustrating if you’ve just bagged a great new salary but don’t have the payslips to prove it.
We work with specialist lenders who are happy to accept a new job and a pay rise with a future start date. If you’re in this situation, you may be able to provide sufficient evidence using your new contract with details of your new salary. Just make sure you store as much documentation as possible to support your application.
What happens if I get a promotion or pay rise?
A promotion or pay rise in the same or a better role may help you get a higher mortgage advance, which could increase the number of properties available to you when you are looking to buy.
But timing matters! To give yourself the best chance of a mortgage approval, you’ll need:
- Your job offer letter
- Evidence of your previous employment history
- Recent bank statements
- Proof of any bonuses or commission (essentially any other income you receive)
- A clear credit history
Example scenario: getting a promotion during the mortgage process
Here’s a scenario we see often. Perhaps you’re experiencing something similar now, or maybe you’ve heard a friend talk about it and want to understand it better.
Imagine you’re halfway through buying your first home. You’ve passed the affordability checks and your mortgage application has been approved. You’ve got a formal mortgage offer. Everything is looking on track, with completion expected in about 6 weeks.
Then your employer contacts you with good news: they’re offering you a promotion with a higher salary. It’s a great opportunity, but the only catch is that the new role requires signing a new contract and a 6-month probation period.
Now, you’re unsure what to do.
- Do you need to tell your mortgage broker or lender?
- Do you need to provide more documents?
- Will the change in employment trigger a new affordability check?
- Could you get a better mortgage deal?
Here’s how this usually plays out.
Sometimes lenders carry out a final employment check before completion, so they may ask for updated documents if anything has changed. While this isn’t always the case, it can help to talk to your mortgage broker as soon as the promotion is confirmed so they can check how your specific lender handles these situations.
In most cases, your promotion won’t cause any problems as long as your income is stable and the new job is permanent. Many lenders will happily continue even with the probation period (especially if you’ve been with the company for a while). But some lenders have stricter rules, so your broker may suggest waiting to accept the promotion until after completion or exploring other lenders who are more flexible.
The exact outcome really depends on your lender and timeline, but rest assured, you won’t automatically lose your mortgage offer because of a promotion. Most buyers can still complete without delays with the right support.
Can you use future income to calculate mortgage affordability?
You cannot typically use future income or salary potential from changing jobs to calculate mortgage affordability.
However, we work with a number of mortgage lenders who can be more flexible and can base mortgage affordability assessments on future income. You would usually need to show the contract or offer letter, a start date within the next 3-6 months, and proof that the role is permanent or long-term.
I’ve recently become self-employed. How will this affect my ability to get a mortgage?
Your mortgage approval may be impacted if your employment status has recently changed to self-employed. Many mortgage companies offering self-employed mortgages ask for up to two years of accounts to determine your mortgage affordability.
This means it’s best to wait at least a year after you change jobs before making a mortgage application.
If you have a fixed contract with someone or short-term contracts, some lenders may be able to help if the work is guaranteed and similar to your previous role.
Learn about how self-employed individuals are assessed for mortgage affordability here.
How can a broker help me find a mortgage lender?
A specialist mortgage broker like Simmonds Mortgage Services has access to a wider range of lenders in the mortgage market than you can access yourself. A mortgage broker may also be able to access specialist lenders and deals that aren’t available on the high street.
Get in touch with Simmonds Mortgage Services today
Simmonds Mortgage Services offers a whole-of-market service to help you find the right lender and get the best mortgage deal, even if you’ve recently changed jobs.
Call us today on 01184 639 037 or book a meeting to chat about your situation.
Frequently asked questions about getting a mortgage after changing jobs
Do mortgage lenders look at employment contracts?
Yes, a few lenders may ask to review your employment contract if you’re applying for a mortgage with a new job. If you don’t have three months of payslips, an employment contract can give your lender reassurance that your role is permanent.
The contract will also give relevant details on your new salary and notice period, which could impact the lender’s decision-making.
What happens if you choose to go from full-time employment to contracting?
Going from permanent full-time employment to contracting might affect your ability to get a mortgage.
Changing jobs to become a contractor leads to more uncertainty over your income. Most lenders want to see a steady income, but some lenders will review applications on a case-by-case basis, especially if you can demonstrate an increased salary from working on a fixed-term contract in your new job.
Does a fixed salary mean a better mortgage deal?
A mortgage lender’s primary concern is whether or not you can make on-time repayments on your mortgage. If you are on a fixed annual salary, you are more likely to be viewed as a stable borrower and lower risk than those on fluctuating incomes.
Mortgage options may be more limited for those in new jobs where income can vary from month to month.
Do I need a larger deposit if I’ve changed jobs recently?
You won’t necessarily need a large deposit if you’ve changed jobs recently, but if you can put down a larger deposit, this could increase your chances of a successful mortgage completion and lower your interest rates.
Is there a specific ‘new job mortgage’ product?
There are no specific ‘new job mortgages’. Apply for a standard mortgage, and your lender will ask for written confirmation of your new job contract to determine your eligibility.
