Can You Get a Mortgage With a New Job?
Yes. Starting a new job does not automatically mean you need to wait several months before applying for a mortgage.
Some mortgage lenders can consider you from your first day in a new job, while others may accept an application before you have started if you have a signed employment contract or confirmed appointment letter.
The right approach depends on factors including when your new job starts, whether the role is permanent, whether you are in a probation period, your previous employment history and how much of your income needs to be used for affordability.
If your new salary includes overtime, commission, bonuses or allowances, lenders may assess these differently from your basic salary.
At Kerr & Watson, we compare lenders based on your actual employment circumstances rather than assuming you need to wait for three months of payslips.
Could You Get a Mortgage With a New Job?
Starting a new job, being in probation or not yet having your first payslip does not always prevent you from getting a mortgage.
At Kerr & Watson, we can check which lenders are prepared to consider your employment circumstances and help identify the most suitable mortgage options available.
Getting a Mortgage With a New Job: At a Glance
| Situation | Can a mortgage be possible? |
|---|---|
| Just started a permanent job | Yes, with some lenders |
| Still in a probation period | Yes, depending on the lender and contract |
| Starting a new job shortly | Some lenders can use a signed employment contract before you start |
| No first payslip yet | Potentially, where the lender accepts your employment contract or appointment letter |
| Changed employer but stayed in the same profession | Often acceptable |
| Changed career completely | Still possible, although the lender may look more closely at the circumstances |
| Fixed-term contract | Possible, subject to contract history and time remaining |
| Variable pay in a new role | May require a track record before all of the income can be used |
| Changed job during a mortgage application | You must tell your adviser and lender so the application can be reassessed |
There is no universal rule requiring you to have been in a job for three or six months before applying. Each lender has its own employment and income criteria.
How Do Mortgage Lenders Assess a New Job?
A mortgage lender is mainly interested in whether your income can be evidenced and is reasonably likely to continue.
When you have recently changed jobs, the lender may consider:
- whether your contract is permanent, fixed-term, temporary or zero-hours;
- your basic salary;
- how long you have been with your new employer;
- whether you are still in probation;
- your employment history before the new job;
- whether you have remained in the same profession or industry;
- whether your income includes overtime, commission, bonuses or allowances;
- any gap between your old and new employment; and
- whether your new salary has already started being paid.
The lender will assess this alongside your wider mortgage application, including your deposit, credit history, financial commitments and overall affordability.
A recent job change therefore needs to be considered as part of the complete application rather than in isolation.
How Long Do You Need to Be in a New Job Before Getting a Mortgage?
You do not necessarily need to have been in your new job for three or six months before applying for a mortgage.
Lender criteria vary considerably.
Some lenders can consider your income as soon as you start a new permanent job. Others may want to see your first payslip, while some can consider a signed employment contract before your start date.
For example, at the time of writing:
- Nationwide can consider applicants who have been in a new job for one month or less and may accept a payslip, signed open-ended employment contract or appointment letter. It can also consider applicants starting a new job within three months of the mortgage application, subject to its criteria.
- Halifax states that income from a new permanent job can be used immediately and may accept a contract or employment letter where the new income is not yet shown on the latest payslip.
These are examples rather than recommendations. Mortgage criteria can change and the most appropriate lender will depend on your complete circumstances.
Do I Need Three Months’ Payslips?
Not necessarily.
Some lenders can assess a newly employed applicant with one payslip, while others can consider a signed employment contract before the first payslip has been issued.
You may need a longer income history where part of your earnings comes from overtime, commission, bonuses or other variable payments.
This is because a lender may be willing to accept your new basic salary immediately but require evidence that additional income is regular and sustainable.
Can You Get a Mortgage During a Probation Period?
Yes. Being in a probation period does not automatically prevent you from getting a mortgage.
The important distinction is often the type of employment you have.
For example, there is a difference between:
- having a permanent employment contract that includes an initial three- or six-month probation period; and
- being employed only on a temporary probationary contract with no confirmed permanent position afterwards.
Some lenders are comfortable with the first situation without requiring you to complete probation.
Nationwide currently states that it can consider applicants who are working within a probation period. Halifax also allows basic salary from employment where probation forms part of a permanent employment contract, subject to its normal criteria.
Other lenders may take a different approach.
Your previous employment history, profession, length of probation and overall application can therefore affect which lender is appropriate.
Can You Get a Mortgage Before You Start Your New Job?
Potentially, yes.
Some mortgage lenders will consider an application using income from a new job that has not yet started.
They may ask for:
- a signed employment contract;
- an appointment or offer letter;
- confirmation of your start date;
- confirmation of your basic salary; and
- details of any probation period.
The amount of time before your start date that a lender will accept varies.
Your previous employment can also matter. A move from one established role into another may be viewed differently from starting your first job or moving into a completely different type of employment.
If you are buying a property at the same time as changing jobs, it is therefore worth checking lender criteria before submitting an Agreement in Principle or full mortgage application.
Find out Your Options
Does the Type of New Job Matter?
Yes. How a lender assesses your new income can depend on the type of employment.
Permanent Employment
Permanent PAYE employment is generally the simplest to assess. Some lenders can use your new basic salary immediately, subject to their criteria.
Fixed-Term Contracts
A fixed-term contract can be acceptable, but lenders may look at how much time remains on the contract and your history of working on similar contracts. Read our guide: Can I Get a Mortgage on a Fixed-Term Contract?
Zero-Hours or Agency Work
Lenders will normally want evidence that your income has been received consistently over a period of time. Requirements vary considerably between lenders.
Part-Time Employment
Part-time income can be used for a mortgage in the same way as other employed income where the lender is satisfied that it is sustainable. Read our guide: Can You Get a Mortgage With a Part-Time Job?
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.
Can a New Higher Salary Be Used for a Mortgage?
Yes, with some lenders.
If you are changing jobs and receiving a higher basic salary, some lenders can assess affordability using the new salary before you have built up several months of payslips.
The lender may require your new employment contract or a letter from your employer confirming the salary and start date.
A similar approach can sometimes apply to a confirmed pay rise or promotion.
Variable income is different. If your new remuneration package includes bonuses, commission, overtime or other performance-related income that you have not received before, a lender may not immediately use all of it.
The evidence requirements depend on the lender and the type of income.
What Happens if You Change Jobs During a Mortgage Application?
If you change jobs after obtaining an Agreement in Principle, submitting your mortgage application or receiving a mortgage offer, tell your mortgage adviser and lender.
A mortgage offer is based on the information supplied during the application. A material change to your employment or income can therefore require the lender to reassess the case.
That does not automatically mean your mortgage will be declined or your offer withdrawn.
The lender may ask for your new employment contract, salary details or other evidence before confirming that the mortgage can continue.
This is important if:
- your salary is reducing;
- you are moving from permanent to temporary employment;
- you are becoming self-employed;
- your working hours are changing;
- a significant part of your previous income came from bonuses or overtime; or
- there will be a gap between jobs.
If you are considering changing jobs while purchasing a property, speak to your adviser before handing in your notice where possible. We can check how the proposed change is likely to affect your mortgage before you commit to it.
What Documents Might You Need for a Mortgage After Starting a New Job?
The documents required depend on the lender and your employment circumstances, but you may be asked for:
- your signed employment contract;
- an appointment or employment letter;
- your latest payslip, if available;
- recent bank statements;
- your previous employment details;
- evidence of your deposit; and
- evidence of any regular additional income you want the lender to include.
If your new salary includes commission, overtime or bonuses, additional payslips or evidence of previous earnings may be required before that income can be included in affordability.
We normally check the required evidence before submitting an application so that the chosen lender has the information needed to assess the case.
Can You Remortgage After Starting a New Job?
Yes. The same employment considerations generally apply whether you are buying a property or remortgaging.
If you have recently changed jobs, a new lender will assess your current income and employment under its criteria.
If your existing mortgage deal is ending, there may also be the option of a product transfer with your current lender. This normally involves staying with the same lender rather than completing a full remortgage.
Which route is appropriate will depend on factors including your employment circumstances, existing lender, borrowing requirements and the products available.
If you know your mortgage deal is approaching its end while you are changing jobs, reviewing the options early gives more time to consider both routes.
What if Your New Job Makes You Self-Employed?
Moving from PAYE employment into self-employment is assessed differently from simply changing employers.
Rather than relying on an employment contract and payslips, lenders may need accounts, Tax Calculations, Tax Year Overviews or other evidence of trading income.
Some lenders can consider applicants with a shorter self-employed trading history than others.
Should You Wait Before Applying for a Mortgage After Changing Jobs?
Not necessarily.
You may be able to apply as soon as you start a new job, and some lenders can consider an application before your first day using a signed employment contract or appointment letter.
Waiting can sometimes increase the number of lenders available, particularly where you need to demonstrate variable income such as bonuses, commission or overtime. However, there is no universal requirement to accumulate three or six months of payslips.
The important point is to check which lenders are prepared to assess your particular employment circumstances before submitting an application.
Starting a New Job and Planning a Mortgage?
If you have recently changed jobs, are still in probation or are due to starself-employedt a new role, we can check which mortgage lenders are able to consider your income.
Kerr & Watson will review your employment contract, income and wider circumstances before comparing suitable mortgage options across the market. Speak to an adviser today.
