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Can I get a mortgage if I’ve just changed jobs?

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    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 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 lenders you can still approach.

    How does getting a new job affect your mortgage application?

    When you start a new job, some mortgage lenders will 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.

    Do mortgage lenders look at different careers and job titles?

    Your lender is unlikely to be interested in your job role or title, whether you are working for the same employer, a new employer in the same industry or in a new industry completely.

    It’s possible that your lender might be interested in your career choice or occupation. Not every lender will ask about this, but some occupations are viewed as more secure than others, e.g. doctor, solicitor, etc. However, lenders are mainly concerned with your financial situation and your ability to keep up with repayments.

    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 have started a new job just before you apply. 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 security, so most mortgage lenders will prefer you to apply after you have completed the probation period, usually 3-6 months. However, many lenders do ignore probationary periods.

    Even if you do not have a probationary period, most lenders want to see at least 3 months’ payslips as evidence of your current income. You may have received a pay rise enabling you to afford the property of your dreams but if you’ve only been in your job a few weeks, you may find it challenging to get a mortgage approval.

    You may be able to provide sufficient evidence using your new contract with details of your new salary. Make sure you store as much documentation as possible to support your application. We work with many lenders who can accept a new job and a pay rise with a future start date.

    What happens if I get a promotion or pay rise?

    A promotion or pay rise in a similar or better job may enable you to get a higher mortgage advance and allow you to increase your monthly mortgage repayments. This could increase the number of properties open to you when you are looking for a place to buy.

    However, make sure you make your mortgage application at the right time with all the required documentation, including your job offer letter, previous employment history, credit history, tax returns and bank statements, to have the best chance of success.

    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 and it starting within the next 3 months.

    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 lenders offering self-employed mortgages ask for at least one year of accounts to determine your mortgage affordability.

    This means it’s best to wait for at least a year after you change jobs to make 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 are only available via brokers.

    Get in touch with Simmonds Mortgage Services today

    Simmonds Mortgage Services offers a whole-of-market service that enables you to find the right lender and the best product to help you get a mortgage with a new job. Call us at 01184 639037 to talk about how a mortgage can work for you and to find the best mortgage deals.

    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, especially if you are applying for a mortgage with a new job. When you are in a new job, you may not have the 3 months’ payslips, so an employment contract can give your lender reassurance that you have a permanent contract.

    The contract will also give relevant details on the salary of your new job and your 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 work as 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 more deposits down, this could increase your chances of a successful mortgage completion.

    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.

    Andrew Simmonds

    Andrew Simmonds

    Andrew Simmonds is the managing director at Simmonds Mortgage Services. He's been providing mortgage advice to home owners for many years.

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