Getting a Mortgage With a New Job

Getting a mortgage when you’ve just changed jobs can be slightly more complicated than if you've been working somewhere for a while. That’s because most mortgage lenders need to understand your income and how stable your employment is when working out your mortgage affordability. 

When you're new to a job, mortgage lenders can find it more difficult to get a picture of your regular income. 

In this guide, you’ll find how new employment can affect your mortgage application, and what you can do to improve your chances.

Can I get a mortgage with a new job?

Yes, it’s possible to get a mortgage if you have a new job. Sometimes, people think you can’t get a mortgage until you’ve been in your new job for three months, but if you’re full-time employed, you can apply for a mortgage if you’re freshly in a new position. You’ll just need to make sure your mortgage application is put together so it looks good to lenders. A good mortgage broker can help with that. 

Starting a new job can be an exciting time, but it can make getting a mortgage tricky. Lenders need to know how risky lending to you will be. The less time you’ve been in a job, the more ‘risky’ you seem. That’s because lenders like you to have a steady income so they know you can keep up with mortgage repayments. 

Some of the big banks will refuse you if you haven’t been with the same employer for at least a year. However, there are mortgage lenders who specialise in dealing with more complex cases. A specialist lender will look at applications on a case-by-case basis and assess you on your individual circumstances. 

You’ll just need to work with a mortgage broker to find you the right deal with one of these lenders. If you’ve just started a new job and need a mortgage, get in touch to speak to one of our Mortgage Experts.

Can I get a mortgage with a new contract?

Yes, it’s possible, but you’ll need to make sure you apply to the right lender. Some of the high street lenders will refuse your application, even if your new contract is with the same company. Some lenders will class this as a totally new job. 

While some big banks will need three month’s payslips before looking at your application, there are specialist lenders who will consider you with a new contract. You might need to get a written reference from your employer to confirm your earnings. It’s a good idea to work with a mortgage broker, who can identify the lenders most likely to accept you. They'll then work with you to present your income in the best possible light. 

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

It’s possible to be accepted for a mortgage using an upcoming pay rise. You might need to do this if you’re looking to borrow more than your current salary will allow, but would otherwise meet the criteria following a pay rise. 

You’ll need written confirmation from your employer stating when your pay will increase and by how much. Some lenders may then accept this, and increase the amount you can borrow. 

It’s important to remember that not every lender is the same, and some will only assess you on your current salary. Your mortgage broker will know which lenders allow future pay rises to be included on a mortgage application.

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

It’s possible to get a mortgage while still in your probationary period, but it can be tricky. Lenders prefer stable employment situations. Being on probation indicates that your job situation could easily change. 

Can I get a mortgage on a temporary contract?

More and more people are finding employment that’s more flexible, and work such as temporary contracts, agency work and freelance work are becoming more common.

It is possible to get a mortgage on a temporary contract. However, your application will be more complicated than it would be for a full-time employee - someone who can easily prove their salary with three months of payslips. 

When you apply for a mortgage, mortgage lenders will want as much information as they can get about your income so they can work out how much they’re willing to lend to you. If you’re on a contract, they’ll want to see your income history from the last twelve months to check its consistency. 

You’ll probably have gaps in your employment history, which can be an issue for some mortgage lenders. But as long as you’ve built up a long-term stable income over time, there’s plenty of lenders who’ll consider your application. 

See how much you could borrow on a mortgage using our Self-Employed Mortgage Calculator.

Can I remortgage with a new job?

Yes, you should be able to remortgage with a new job. It’ll be easier for lenders to see how reliable you are with repayments when they look at your existing mortgage. Most lenders will probably consider your application, as long as you meet the rest of their lending criteria.

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

Most lenders will need you to have a secure income before lending to you. They won’t want to risk you struggling, or having to repossess your home. 

It may be possible to get a mortgage without a regular income, but you’ll have fewer options to choose from than if you were earning regularly. You may also have to put down a big deposit.

If you’re applying for a joint mortgage and one of you isn’t earning, you may still get accepted if the other applicant’s income is enough to cover the repayments and other outgoings. If one of you has bad credit, and you think it might affect how successful you’d be at getting a mortgage, you could consider just the one of you who has good credit being the sole mortgage holder. Read more about that in our Guide: Getting a mortgage on your own. 

If you receive benefits, some lenders will consider your income from this. If you’ve lost your job, or are currently seeking new employment, it might be worth waiting until you’ve got some income before submitting your application. 

How do lenders verify your employment?

When you’re applying for a mortgage, you’ll need to prove you earn what you say you do. Lenders then verify your income and work out what kind of a mortgage you can afford. You’ll usually do this by submitting payslips, tax returns, or employer references. But there are a few differences in the way you prove your income depending on if you’re employed by a company, or you’re self-employed. 

If you’ve just become self-employed and don’t have accounts yet, it can be difficult to get accepted for a mortgage. Usually, a lender will look at your average income over recent years to determine how much you can afford to pay and, therefore, how much you can borrow.  

If you're an employee, you'll likely have a contracted salary which means you can produce payslips and P60s to prove your income. Mortgage companies can easily calculate how much of your pay will go towards your monthly mortgage repayments. When looking at employed applicants, mortgage lenders will want to see recent payslips (usually 3 months), a P60 and bank statements. If you’ve just started a new job, they’ll want to see a signed contract or an employer reference to verify your employment.

Read more in our Guide: What Do Mortgage Lenders Look For in Mortgage Applicants?