Getting a mortgage with a new job

Is getting a mortgage with a new job possible and what happens if you change jobs during the house-buying process? We take a look

Angela Kerr Director, Editor

Can I get a mortgage if I’ve just started a new job?

Yes, it may be possible to get a mortgage if you’ve just started a new job. You may also be able to get a mortgage with the following employment circumstances:

• A formal job offer but haven’t yet started
• A temporary employment contract
• Renewed an employment contract
• Applying for a mortgage in a job’s probationary period
• Recently become self-employed.

But many lenders won’t lend in these circumstances. And those that may lend will look at your individual circumstances including your previous work history before making a decision.

So if you want to apply for a mortgage with a new job it’s advisable to speak to a fee-free mortgage broker as they’ll know which lenders will be most likely to lend to you.

Can I get a mortgage with less than 3 months’ employment?

Possibly. Most lenders will require that you’ve been in the same position for at least 3 months before you’ll be accepted for a mortgage. But this isn’t the case for all lenders so if you’re looking for a mortgage with a new job you’ve been at for less than 3 months, speak to a mortgage broker for specialist advice.

Getting a mortgage with less than 6 months’ employment should be easier. However if you wait 6-12 months after starting a new job to apply for a mortgage, you should have more choice of lenders and may be less likely to have your mortgage application turned down.

Is it possible to get a mortgage during the probationary period of a new job?

If you’re still in the probationary period of a new job it can cause difficulties in getting a mortgage. This is because lenders factor in the added risk that there is no guarantee that you’ll be kept on after the probationary period ends. However, different lenders can be more flexible than others depending on your circumstances so it’s advisable to speak to a mortgage broker to get expert advice.

Can I get a mortgage if I’ve just started my first job?

It’s possible although the lender may require you to put down a larger deposit.

Can I get a mortgage with a new job contract?

If you take on a new contract with the same employer, some lenders may consider this a new job and not take into account your employment under your old contract. It may be particularly helpful to use a mortgage broker in this circumstance.

Does my occupation affect getting a mortgage with a new job?

Your occupation won’t usually affect your chances of getting a mortgage with a new job. However, some lenders that won’t usually lend to people who have just started a job will make exceptions for teachers and other professional roles.

Should I wait to apply for a mortgage?

Getting a mortgage with a new job means you’ll have a smaller pool of lenders to choose from and may not get access to the best mortgage rates. So you may decide to wait to apply for a mortgage. However, if you’ve found a property you love it’s worth investigating your mortgage options. If you can borrow what you need then you may decide it’s best not to wait.

What are the rules about changing jobs after a mortgage approval?

Lenders base their decision on whether to lend to you on affordability – most mortgage applications signed by borrowers will contain a declaration that the borrower will tell them about any change in circumstances that might affect the application. So if you have a formal mortgage offer, you should read the offer and associated terms and conditions to see what it requires of you.

If you change jobs after mortgage approval, the lender will reconsider the application and reserves the right to withdraw an offer if there is a material change in circumstances that might have affected their original decision. 

It’s also common practice for your solicitor or conveyancer to ask you for confirmation that there’s been no change to your circumstances prior to completion. You would clearly need to answer any question truthfully, otherwise it would constitute fraud.

How long will it take to get a new mortgage offer?

If you’ve changed jobs and your lender withdraws your mortgage offer as a result, it may be possible to get a new mortgage. But depending on what stage you are at in the house buying process you may need to act very quickly to avoid your purchase falling down.

To get a new mortgage offer you’ll need to go through the full mortgage application and this can typically take two to four weeks to process. However, factors like how busy the lender is and how straightforward your circumstances are can influence the duration.

If this happens, using a mortgage broker can save you time as they can recommend a lender which is most likely to lend to you. Find more on how you can speed the process up in our guide How long does it take to get a mortgage?

Change of circumstances to your salary and mortgage offers

1. Getting a mortgage after a promotion: Can I borrow more?

If you’ve been promoted and got a pay rise, many lenders will require you to have been earning the higher amount over several months before they’ll take it into account when it comes to the amount you can borrow.

Although this isn’t the case for every lender so shop around.

2. What if I have to take a pay cut?

If you’ve received a mortgage offer and now find yourself having to take a pay cut, you have to tell your mortgage lender to make sure they will still be willing to lend you the same amount.

How many years do I need to be self-employed to get a mortgage in the UK?

According to the Office for National Statistics, over 4.2 million people in the UK are self-employed. If you’re self-employed and want to apply for a mortgage, most lenders will require you to provide at least two years of accounts to accept your mortgage application. However, it is possible to get a self-employed mortgage with just one year of accounts although you may need to use a specialist lender. Find out more in our guide on Self employed mortgages.

Get free self employed mortgage advice from award-winning brokers L&C. Start the process online or over the phone now

Is changing jobs after mortgage completion in the UK possible?

Yes. Once your mortgage has completed, you’ve moved into your new home and you’ve started paying your mortgage back you shouldn’t need to tell the lender about changes in your circumstances, as long as you can keep up with the monthly mortgage repayments.

However, if changes to your circumstances mean you experience difficulties keeping up with your repayments, you should speak to your lender. Read our guide Can’t pay mortgage – what now?

Getting a mortgage with a new job on a zero hours contract?

Getting a mortgage with a new job on a zero hours contract job may be very difficult. Lenders consider those working on zero hour contracts as a higher risk customer than those on a guaranteed monthly income. For that reason, some lenders may require you to have been with the same employer for a year or more before they consider lending. Find our more in our guide on Zero hour contract mortgages.

Can I remortgage with a new job?

Yes. The lender will be able to see your repayment history: if you’ve made all your repayments on time this will support your application. But a lender will still need to assess your full mortgage application, including income, and different lenders will have different rules on what they will accept you. So it’s advisable to speak to a mortgage broker about your remortgage options first.

How to get a mortgage with a new job

1. Maximise your deposit: The larger your deposit, the easier you may find getting accepted for a mortgage. Read our guide How to save for a deposit
2. Check your credit rating: If there are any mistakes in any of your credit reports, get them corrected. See if you can boost your credit rating by reading our guide 11 tips to improve your credit score for a mortgage.
3. Review your finances and speak to a mortgage broker: Getting a mortgage with a new job can be more difficult so make sure you take expert advice from a fee-free mortgage broker. They’ll do the hard work to find the right deal for you and also be able to match you to a lender that’s most likely to approve your application.

What documents do I need if I’m applying for a mortgage with a new job?

When you’re applying for a mortgage with a new job, on top of providing evidence of your employment as required by the lender, you’ll need to provide:

• Proof of ID like a passport or driving licence 
• Bank statements of your current account for the last three to six months
• You might also need to show your outgoings, including how much you’re borrowing on credit cards and other loans and general living costs such as travel, childcare and entertainment.