Switching to a brand new job is exciting for sure but it can also feel like a risky step if you want to apply for a mortgage. How does a new job affect your chances? Is getting a mortgage with a new job impossible?

In the UK, lenders appreciate employment stability as it gives them confidence about your ability to repay the loan. So does a new job look bad? What factors play a role here? Let’s find out. 

How New Jobs Affects Mortgage Applications

From a lender’s perspective, two crucial aspects of a mortgage application are the borrower’s ability to repay the loan and their overall financial stability. Now a steady, long-term job indicates both of them clearly. This is why lenders have the tendency to lean towards those with long job tenures for reliability and consistency. 

However, switching jobs can happen for all sorts of reasons. It may be for a better career opportunity with a boosted income which starts looking great in your application. If you have any employment gaps, UK mortgage lenders are understanding of legitimate reasons for career breaks, so it shouldn’t significantly impact your mortgage application.

Can I Get a Mortgage with a New Job?

Absolutely. While mortgage lenders generally prefer you to be in your current role for at least three to six months, it won’t necessarily disqualify you if your overall financial profile is strong. A high credit score, a large deposit, and a history of stable employment can work in your favour.

Remember that not all lenders look for the same things. Yes, traditional lenders may have strict policies about job tenure, but you can find the right one who is more lenient if they believe you are financially secure in the bigger picture.

New Job and Mortgage: What to Expect

So there may be some additional considerations when you apply for a mortgage shortly after starting a new job. If you have switched jobs recently but have a healthy credit profile, such as paying off loans consistently and a high credit score, your application has a very good chance to succeed. 

While the application process isn’t too different, you may need to provide some extra papers to verify your employment and income:

• Employment contract
• Recent payslips from previous and current positions
• Bank statements from the last three to six months

All these documents will help strengthen your application as they will act as proof of financial stability. 

Key Factors Lenders Consider

With your recent job change, your career will come under the magnifying glass for lenders. If you understand the key details they’ll examine, it will help you assess your mortgage eligibility.

Type of Employment Contract
Permanent and full-time contracts are generally considered to be the most secure. Lenders favour it the most. Freelance and temporary work can also prove to be good if a consistent income over a reasonable period (perhaps a year) is demonstrated. For self-employed people, it’s best to provide evidence of two to three year’s worth of income to have the best chances. 

Probation Period
Lenders are pretty hesitant if you are still on your probation period when applying for a mortgage. Probation periods represent a period of uncertainty. So it’s probably best to wait until you are out of probation. However, there are lenders who would be willing to offer you a mortgage during the early stages of your employment, especially with a clean record track of repaying loans on time. 

Industry and Job History
If your job is a better opportunity within the same industry, it is likely to get a positive reaction from your lender as it reflects a clear stable career path. Employment within one sector shows that you are likely to stay in your new role for the long run.

Income
If your new job comes with a significant pay rise, lenders would look at it as “Cha-Ching”! This removes some of the risks associated with being new to a job and also justifies the switch. At the same time, a boosted income makes the mortgage payments more affordable, increasing the lender’s confidence in you. 

Explanation Letter
A well-written letter can help explain why you have recently changed jobs. In such letters, you can talk about the reason behind the switch, how it matches your career goals, and why you are financially stable despite the change. The explanation can assure the lender of your long-term commitment to the new role. 

How Long Should You Wait?

It is possible to secure a mortgage soon after starting a new job but waiting a few months before applying can tip the scales your way. Applicants who have been in their current position for a good amount of time are preferred by lenders. Therefore, waiting for six months will provide comprehensive evidence of your income and financial stability. 

Certain fields would receive more flexibility such as healthcare, education, or technology. UK lenders are likely to find them to secure employment prospects even if you are new to the job. In such cases, the employment period may not play a big role, and you would be better off not waiting. 

Potential Challenges with a New Job Mortgage Application

Despite the possibility of securing a mortgage with a new job, certain issues can make the process more difficult. If in the last few years, you have been frequently changing your jobs or the field, that would cause lenders serious worry. Job hopping or unclear career trajectory is equal to financial instability to many.

At the same time, lenders may be wary of self-employed or freelance applicants as the income from these sources is likely to be a little unpredictable. However, as we mentioned before, two to three years of financial records can help prove your capability to make the repayments in time. 

Conclusion

Getting a new job in the UK is something to look forward to, and it doesn’t have to derail your homeownership dreams. You can focus on meeting other expectations such as offering a large deposit and improving your credit score. If you are still tense about it affecting your application, you can wait and settle in your new job before taking the next step.

At the UK Mortgage Finder, we specialise in helping individuals with new employment secure the financing they need. We’ll take the stress out of finding a flexible and competitive mortgage that suits your needs. Contact us today.