Getting a mortgage if you’ve just changed your job might be a little more complicated, but it’s not impossible.
If you’ve just changed jobs, renewed a contract, or are starting your first role, you may be worrying that you won’t be able to get a mortgage until you’ve been there for a while. Fortunately, that’s not true – while it might be a little harder, it’s still possible. Let’s take a look at all the new-job scenarios that could mean you need a little support when applying for a mortgage.
Can I get a mortgage if I have a new job?
Yes, although it’s commonly believed that you can’t get a mortgage until you’ve been in your new job for three months, provided you’re in full-time employment, you can still apply for a mortgage.
The only catch is that it might be slightly harder to find the right mortgage lender. This is because lenders will be looking at how risky a borrower you’ll be. The newer you are to your job, the riskier you seem for two reasons:
Lenders like to see the history of a steady income to be reassured that you’ll keep up with the mortgage repayments
As a newer employee, your chances of redundancy (should your company fall on hard times) are higher than with longstanding employees
The trick is finding a mortgage provider who is open to assessing your income and employment in a new role, and a well-prepared application.
Can I get a mortgage if I’ve renewed my contract?
Yes, provided you apply to the right lender. Some high street lenders might refuse your application, classing it as a completely new job – even if you’re simply renewing a contract with the same company.
Many of the high street banks and lenders will ask you for three months’ payslips before considering your application. If changing contracts or starting a new one means you don’t have that, you’ll need to find a specialist lender who will consider applications without three months of payslips. It might even help to get a written reference from your employer to confirm your earnings on your new contract.
A mortgage broker will help you find specialist lenders who will consider borrowers on new contracts.
Can I get a mortgage with a pay rise?
If you’ve just been given a pay rise but are yet to receive any payslips with the new, increased amount on it, you can still get a mortgage based on your new salary.
Getting a mortgage based on your upcoming pay rise might be necessary if you’re hoping to borrow more than your current salary will allow but would otherwise meet the lending criteria following a pay rise.
The best thing to do is get written confirmation from your employer that states when your pay will increase and by how much. Some lenders will then accept this and increase your borrowing amount.
Don’t forget, not every lender is the same and some will only assess you on your current salary. A mortgage broker can help you find a lender who will consider your upcoming pay rise.
Can I get a mortgage during my probation period?
Applying for a mortgage while you’re in your probation period in a new job can be difficult, and it’s often advised to wait until you’ve passed it. This is because while you’re in your probation period, you have a higher chance of being let go from your role – making you a much riskier borrower in the eyes of the lender.
However, waiting until you’re made a permanent employee isn’t always possible, and the good news is that there are some lenders out there who will consider an applicant in their probationary period. You’ll need a mortgage broker to help you find a specialist lender and help you prepare your application. You should also be aware that you might be asked for a higher deposit to offset the risk or be open to having to pay higher interest rates.
Can I remortgage with a new job?
Yes, remortgaging with a new job is relatively simple. Showing a good repayment history on your existing mortgage makes it easier for lenders to see how reliable you are, so long as you meet the rest of their lending criteria, they’re likely to consider your application.
Can I get a mortgage if I don’t have a job?
If you’ve recently lost your job or find yourself in between jobs while you look for new employment, it might be worth waiting until you’ve secured a new role before applying for a mortgage.
Lenders need to see your secure and stable income in order to assess your application. If you don’t have this, they’re very unlikely to lend to you because they need proof that you can make your monthly mortgage repayments.
If you have some income but it’s not regular, you might have some mortgage options. However, they’re likely to come with higher interest rates and larger deposit requirements.
If you’re applying for a joint mortgage with someone who is earning a stable salary, you could have more success if their income is high enough to cover all repayments and monthly outgoings.
The Mortgage Hut can help
Started a new job and hoping to get a mortgage? We’re expert mortgage brokers with a wide network of specialist lenders, so we can help you find the right lender and product for you. We’ll support you through the entire process and guide you through your application to make sure you’re putting your best foot forward. Contact us to get started.
FAQs
How do lenders check your employment?
Lenders verify your employment when you apply for a mortgage by asking you for payslips, tax returns, or employer references. If you’re self-employed, you’ll be asked for a history of accounts. If you’re an employee, you’ll be asked for payslips and P60s. If you’re starting a new job, they might ask for a signed contract or employer reference.
How long do I need to be employed to get a mortgage?
Some lenders will require you to have been employed for at least three months, others six months, and some will require that you’ve completed your probationary period. But other, specialist lenders will consider you even if you’ve just signed the contract. A mortgage broker can help you find a specialist lender.
Can I get a mortgage with 2 months’ payslips?
Most high street mortgage lenders will ask you for 3-6 months’ payslips. If you don’t have this because you’re new in your job, a mortgage broker can help you find a specialist lender to consider your application.
