Will getting a new job affect my mortgage application?

Switching jobs during a mortgage application can complicate things. Lenders prefer financial stability, and a job change can signal uncertainty. This is because lenders want to ensure you have a steady income to meet your mortgage repayments.

If you change jobs, your lender will likely review your new employment details, including your new salary, job stability, and contract type. Even if your new job offers a higher salary, the lender might still consider this a risk.

But don't panic. Many lenders are willing to work with borrowers who have recently changed jobs, provided they can demonstrate job security and a stable income.

What happens if I change my job after my mortgage application?

If you change jobs after submitting a mortgage application, it is crucial to inform your lender, as it may affect your mortgage approval. Depending on the circumstances, they might still approve the mortgage, especially if your new job offers better pay or stability. However, failing to disclose job changes can lead to complications or even withdrawal of the mortgage offer.

Can I get a mortgage if I'm still on probation?

Getting a mortgage while on probation is possible but more challenging. Lenders see probationary periods as a risk since your employment isn't guaranteed. However, some lenders might consider your application if they see other strong financial indicators, such as:

• Stable Employment History: Show a stable employment history before your current job to improve your chances.

• Employer Letter: A letter from your employer stating your job security and prospects can also help.

• Significant Deposit: A larger deposit can make lenders more amenable to approving your mortgage application, even if you’re on probation.

Better.co.uk's mortgage brokers can help you navigate these challenges, offering personalised advice to strengthen your application.

Should I wait a few months to apply for a mortgage after getting a new job?

Waiting a few months after starting a new job before applying for a mortgage can be beneficial. It allows you to pass your probationary period and demonstrates job stability to lenders.

During this waiting period, focus on building a solid financial foundation. Save for a larger deposit, reduce any existing debts, and keep your credit score healthy. You improve your chances of securing a favourable mortgage deal by showing consistent income and stable employment.

Can you use future income to calculate mortgage affordability?

Some lenders might consider future income when calculating mortgage affordability, especially if you have a confirmed job offer with a higher salary. However, this is not always the case.

To use future income in your application, you may need to provide a signed employment contract or a letter from your new employer. The lender will assess how likely the future income will materialise.

Keep in mind that using future income can complicate your application. Be prepared to provide additional documentation and possibly face a longer approval process. Our experts can guide you through the documentation process, ensuring a smoother application experience.

Can I get a mortgage if I don't have a job?

Getting a mortgage without a job is extremely difficult. Lenders need to see a reliable source of income to ensure you can make repayments. However, there are a few exceptions.

• Substantial Savings: Lenders might consider your application if you have significant savings, investments, or other sources of income.

• Retirees: Retirees, for example, can use their pension income to qualify for a mortgage.

In any case, it is advisable to secure stable employment before applying for a mortgage to increase your chances of approval.

Our mortgage brokers can evaluate your financial situation and provide advice on the best course of action.

Do mortgage lenders look at employment contracts?

Yes, mortgage lenders often request to see your employment contract. This helps them verify your job stability, salary, and terms of employment.

Your contract provides evidence of your income and employment status, reassuring lenders of your ability to repay the mortgage. Ensure your contract is signed and includes details like job title, salary, and start date.

If you're self-employed or on a temporary contract, lenders may require additional documentation to assess your income stability. Better.co.uk can help you gather the necessary documents and strengthen your application.

I've recently become self-employed. How will this affect my ability to get a mortgage?

Becoming self-employed can make obtaining a mortgage challenging, but it's not impossible. Lenders typically require at least two years of accounts to assess your income stability.

Comprehensive financial records, including tax returns and business accounts, can help strengthen your application. Some lenders may consider applications with only one year of accounts if you have a strong financial position.

Read our dedicated self-employed guide for getting a mortgage for more information. 

Can I use my future pay rise on a mortgage application?

Lenders may consider a future pay rise in your mortgage application, but this is less common. You must provide a formal letter from your employer confirming the pay rise and its effective date.

While this can boost your affordability assessment, not all lenders accept future income. It's best to check with your lender or mortgage broker to understand their specific criteria.

If your future pay rise is significant, waiting until it takes effect might result in a better mortgage deal.

Does a fixed salary mean a better mortgage deal?

A fixed salary can make your mortgage application more attractive to lenders. It provides a predictable and stable income, reducing the lender's perceived risk. This can lead to better mortgage terms and interest rates.

In contrast, variable income, such as commissions or bonuses, might complicate your application. Lenders usually prefer fixed salaries as they ensure consistent repayment ability.

However, providing a history of earnings and demonstrating overall financial stability can still result in favourable mortgage terms if you have variable income.

How long do I have to be in a new job to get a mortgage?

The time you need to be in a new job to get a mortgage varies by lender. Generally, lenders prefer applicants to have completed their probationary period, typically three to six months.

Some lenders may consider applications from those who have been in their job for as little as one month, provided other aspects of their financial profile are strong.

It's best to consult a mortgage broker who can guide you on specific lender requirements and help you find the best deal based on your employment situation. Better.co.uk's brokers can assist you in finding the right lender for your circumstances.

Is getting a mortgage when starting a new job a good idea?

Getting a mortgage when starting a new job is possible but comes with risks. Lenders may view your application cautiously due to the lack of demonstrated job stability.

To mitigate this, ensure you have a strong financial profile with a good credit score, substantial deposit, and minimal debt. Providing a letter from your employer confirming your job security can also help.

Consider the timing of your application. If possible, wait until you've completed your probationary period to strengthen your chances of approval.

Our mortgage brokers can help you determine your mortgage application's best timing and approach.

Does my occupation or industry affect a new job mortgage?

Yes, your occupation and industry can affect your mortgage application. Lenders may view some professions and industries as more stable and less risky.

For example, healthcare, education, and public sector roles are often seen as secure. These are usually called ‘professional mortgages’, where you can (depending on the right occupation) borrow up to 5.5x your salary instead of the ‘usual’ 4.5x.  In contrast, freelance or seasonal work may be viewed as less stable. 

Highlighting your job stability, income history, and industry reputation can help strengthen your application, regardless of your specific occupation.