Jamie Lennox - Mortgage Adviser - Dimora Marketing

Getting a mortgage with a new job

Getting a mortgage with a new job

Getting a mortgage with a new job is often a big worry for people as many people will think they will need to be in a new job for at least 3 months before they can get a mortgage. However, this isn’t always the case and in some circumstances, you may even get a mortgage if a new role hasn’t started yet.

starting a new job can be exciting, but because your employment is relatively new, it can cause concern for some mortgage lenders due to a lack of track history.

Getting a mortgage with a new job?

Getting a mortgage with a new job is possible, but this doesn’t mean to say that you’ll be accepted by every lender. Lenders each have different criteria around what their ideal client looks like and can see some big variations from one lender to another on how they view new jobs.

Ideally, lenders like to see you have been in a job for over 3 months and some even need as much as 6 months history in employment before they will consider. That being said, there are mortgage lenders that will consider newly employed applicants.

It’s possible to get a mortgage under the following circumstances:

  • Applicants that have recently started a new job
  • Renewed an employment contract
  • A formal job offer but have not yet started
  • Applying for a mortgage in a probationary period

Should I hold off applying for a mortgage until I’ve been in my job for 3 months?

There are lenders that will consider applicants that have recently started work, so you won’t have to wait to apply for a mortgage. However, this may limit the lenders that are available to you.

If you need a mortgage immediately and have recently started a new job, waiting simply won’t be an option. You may still get a mortgage subject to the rest of your application meeting a lender’s criteria. You’ll just need a mortgage advisor to search for eligible lenders suited to your circumstances.

Can I get a mortgage if I change my job?

It’s possible to get a mortgage when changing jobs. Having an employment history will certainly help your application, but lenders will require details of your previous role in addition to your new job. Lenders can decline applicants that haven’t been with the same employer for at least one year. Some lenders that have very strict criteria often demand even more employment history.

Starting a new job is something to embrace, but it’s important to consider the impact new employment can have on your mortgage application. Lenders base mortgage assessments on risk, and the less time you’ve been in your job, the higher risk you become. This is why getting a mortgage with a new job isn’t always an easy task.

Fortunately, there are lenders that are flexible and may consider you with little employment history. Some lenders offer mortgages to applicants that haven’t even started their employment but do have a contractual job offer.

Can I get a mortgage with a new job contract?

If you’ve taken on a new job with a different employer. This can cause issues depending on the lender you’ve applied with. However, there are lenders out there who can work off day one employment or even up to 3 months in advance of the new job role starting.

Is it possible to get a mortgage after a pay rise?

If you’re aiming for a maximum mortgage amount but don’t quite meet the affordability, a pay rise may enable you to achieve this. It’s important to note that a pay rise is a positive aspect towards a mortgage application.

If you’ve had written confirmation that your salary is to be increased on a certain date, then some lenders may be able to use the increased salary amount when assessing your income.

It’s important to understand that not every lender will consider the forthcoming increase in salary. This is because you may not have evidence of payslips and your bank statements won’t reflect your higher salary. Having evidence of this will allow you to use your higher income amounts during your affordability assessment.

Can I get a mortgage during a probationary period?

If your job role is a permanent contract with a probationary period, typically most lenders won’t have issues with this. The concern to lenders typically arises around a probationary contract with a view to a permanent position, as there is less security around being moved to a permanent contract at the end of that period which will make obtaining a mortgage more tricky.

Is it possible to remortgage with a new job?

It certainly is possible to remortgage with a new job. As you already have a mortgage, it’s a lot easier for lenders to assess how you’ve managed your mortgage repayments. Having repaid your mortgage on time will give you heaps of credibility, but having fallen into financial problems will do the opposite. That said, a new job can show lenders that you’re regaining control of your finances if this is the case.

The majority of lenders should consider your application and you shouldn’t run into any real difficulty. This of course depends on other factors, such as your credit score and the amount of equity you have. Your reason for a remortgage will also be a factor in whether you’re approved.

Can I change jobs once I have a mortgage offer, but prior to my mortgage completion?

Although a mortgage lender has issued your mortgage offer, this is based on the circumstances disclosed at the time of application. if there are any changes prior to the mortgage physically completing you have a duty of care to inform the lender of these changes. With some lenders, this could present some issues if you have not been in that new role for the lender’s required period of time or if there is any reduction in income. therefore it’s advisable to not look at changing jobs during the mortgage process.

Do I need a mortgage broker?

Having a mortgage broker will certainly help you understand your options and takes away some of the stress of getting a mortgage with a new job as they can look to use their expertise and experience to pair you with a suitable lender based on your circumstances. Potentially saving you time and frustration along the way.

 

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