Getting a Mortgage with a New Job

Can you get a mortgage with a new job

In many situations, you can. Some lenders accept applicants who have only recently started or who are about to start, provided there is clear evidence of income and the overall case makes sense. Some lenders prefer a few months of payslips while others are comfortable with a signed contract and a confirmed start date. A smaller group will consider an offer letter for a future start, particularly if you remain in the same field and they are comfortable with the overall situation.

The key is alignment between your story and the evidence. If you have a stable work history, a clear career move and a sensible level of borrowing, approval is very achievable.

How lenders look at new employment

Underwriters focus on three themes: income stability, sustainability and verification. In practice that means they want to know that your new pay is secure, that you are likely to keep earning it and that they can verify it with documents from you and your employer. They will also check your credit profile, current commitments, the size of your deposit and whether your spending leaves room for the new monthly payment.

Where you fall on that risk scale depends on factors such as your contract type, time in role, any probation clause, gaps in employment and whether your new earnings include variable elements like commission or overtime.

They will also want to know more details around the company you are going to with enhanced due diligence carried out.

Time in role and probation periods

There is no single market rule, but a common pattern looks like this. If you have three to six months in your new job with payslips and bank statements, many lenders will be comfortable. If you have less than three months, options still exist, especially with a signed contract and a role that is comparable to your previous position.

Do I need to pass probation before getting a mortgage?

Probation is not an automatic barrier. Some lenders will lend during probation if the rest of the case is strong. Others will want confirmation from your employer that the role is permanent on satisfactory completion.

Contract types explained

Your contract type shapes what evidence will be needed and which lenders will consider you.

Permanent employed

This is usually the most straightforward. Many lenders will assess based on your basic salary with one or more recent payslips and a contract. If your package includes overtime, commission or bonus, expect lenders to average those over a recent period and sometimes over a longer window if the figures vary.

Fixed term

You can still qualify, particularly if you have a track record of similar contracts in the same profession. Lenders often want to see the current contract, any history of renewals and evidence of future prospects. If the contract is new and in a different field, you may need stronger overall credentials such as a larger deposit.

Zero hour and agency

Approval is harder but not impossible. Lenders typically ask for a longer record of income so they can see consistency. Expect to provide bank statements and payslips over several months, sometimes a full year. If you have been with the same engager for a long period, that strengthens the case.

Part time

This is treated similarly to full time. Lenders will look at contracted hours and regularity of income. Where hours or pay fluctuate, they will average the income using recent payslips.

Job offer or future start date

Some lenders will accept a signed contract before you start, especially for professional or like for like moves. Employer letters confirming salary and start date are important and underwriters need to ensure the situation all makes sense before they agree to lend.

If you want to rely on a future pay rise, a written confirmation can allow some lenders to use the higher figure.

What if your income changes

A promotion and pay rise can increase what you can borrow. Lenders may use the new salary once it is confirmed in writing and often once you have a payslip showing the higher amount. A pay cut has the opposite effect and your affordability will be recalculated on the lower salary. If variable income forms part of your pay package, be prepared to evidence a recent track record before a lender will count it.

Changing jobs during an application

If your circumstances change after you have an agreement in principle or even a formal offer, you must tell the lender. They will reassess affordability against the new role. If the offer is withdrawn, it may still be possible to proceed with a different lender who is comfortable with your update.

Remortgaging after a job change

If you already own and you change role, you can still remortgage. A strong payment history on your current loan helps. Lenders will reassess your affordability on your new income in the same way as they would for a purchase. If timing is tight, speak to us early so we can plan the application around your start date and evidence requirements.

Newly self-employed

Moving from employment to self-employed status makes the assessment different. Most mainstream lenders want to see filed accounts or tax calculations and year overviews. Some are happy with one year, many prefer two.

Conclusion

With some lenders, you can get a mortgage with a new job. Success depends on matching your situation to the right lender, evidencing income clearly and presenting a strong overall case that allows the underwriter to be comfortable.

Whether you have just started, you are in probation, you are moving on to a fixed term contract or you are about to begin a role with a higher salary, there may be solutions available. The fastest way to the right answer is to speak with a broker who can look at the market for you.

If you are ready to move forward or you simply want to sense check your options, contact Kerr & Watson today.