Getting a Mortgage If You've Just Started a New Job

To get a mortgage, it’s best to have a stable work history of 3-6 months. If you’ve been at your job for less than 3 months, depending on your income, credit history, and job stability, there may still be options available. Lenders have different criteria, so it’s important to compare options.

Keep in mind that you may have to settle for a slightly higher interest rate initially, at least, as you’ll be considered a higher risk, but you can always remortgage at a later date for a better deal.

This all depends on your own personal situation. Ideally, waiting until you’ve passed your probationary period would be best, as most mortgage lenders will likely ask this question during their eligibility assessment. However, you may miss out on the desired property or a particular interest rate offer if you wait.

But applying too soon could mean an instant decline if you’ve approached a lender who deems you too much of a risk at this time due to your employment status.

This is why it’s best to seek the guidance of an experienced mortgage broker before applying directly to a lender. They’ll be able to assess your circumstances and offer the best advice on whether you should apply straight away or wait.

It will be hardest to find a lender when you’ve not even reached the three-month mark in a new job, but it doesn’t have to be a deal breaker. Some lenders are prepared to make an offer based on the salary of a job you’ve yet to even start.

Having a solid work history in your last job and having experience in the same industry will both play in your favour, as well as being able to provide evidence of a permanent contract and a letter from your new employer.

Regardless of how long you’ve been in your new job, lenders will want to know whether or not you’re currently working a probationary period.

A probationary period comes with increased risks for lenders. While many won’t consider your application while it applies, some will be happy to look more broadly at your career history and consider factors including:

• The length of the probationary period and how long remaining
• Relevant employment track record
• Any career gaps or significant career changes

If you’re approaching the six-month mark in a new job, then more mortgage options will start to open up to you as the perceived risk for lenders decreases. Again, the overall length of time you’ve been consistently employed, not just in the new role, will play a part.

Just as there are ways to get a mortgage if you’ve recently changed jobs, you should be able to find a lender who is happy to remortgage, even if you’ve only been in your new job for a few months.

The eligibility criteria will be similar to a mortgage, so gather as much documentation as possible to support your application. Because these lenders are harder to find, you’re still best placed to go through a specialist broker.

Before applying, contact us so we can match you with a broker specialising in arranging mortgages for people who have just started a new job. This will ensure you are in the best possible position to secure a mortgage that meets your needs.

They can help you do the following…

• Assess your overall employment history – not just your current status
• Strengthen your application to offset the risk posed by your change in circumstances
• Download and optimise your credit reports to remove any inaccuracies or outdated information
• Find the ideal mortgage lender for someone who’s just started a new job

You are legally obliged to tell your lender about any changes that could impact your suitability for a mortgage, so this includes changing jobs and any income changes within your existing job, such as a pay rise or reducing your hours.

Relocating for a new job should only impact your mortgage application in the same way as changing jobs within the same town. If you’re relocating and changing jobs within the same company, this should simplify things, as you’ll have a consistent employer.

Ideally, lenders like to see several years of accounts if you’re self-employed, but it is possible to get a mortgage as a freelancer with less of a track record; it just depends on the lender.

It helps if you can show a consistent employment history before becoming self-employed, and it’s even better if it’s in a relevant industry, as this will give lenders more confidence in your new venture.

Ideally, if you’re looking to buy a house, you should wait to hand in your notice until after the purchase has gone through, as resigning from your job will likely affect your mortgage offer.

If that’s not possible, a good first step is to talk to your broker about any implications and what you’ll need to tell your lender.