By Dom Spencer - March 19th, 2024 Posted in Mortgage Guides No comments


Before accepting your mortgage application, lenders will assess your financial stability, especially your ability to meet monthly repayments.

If you start a new job shortly before applying for a mortgage, this can pose challenges as you may be unable to provide the necessary income documentation.

As a general rule, it’s necessary to be employed in your current position for a minimum of three months before applying for a mortgage.

This period allows lenders to gauge your income stability and mitigate the risks associated with your change of circumstance.

Can you apply for a mortgage during your probation period?

Most new hires undergo a probationary period ranging from 3 to 12 months. While this is a standard practice, it can complicate mortgage applications, particularly with traditional lenders.

If you apply for a mortgage during probation, uncertainties regarding your employment status may lead to application rejections, as there is no guarantee of a permanent contract at the end of your probation.

The good news is that once your probation is over, the months you ‘ve spent on probation will count towards your total employment period, which is recognised by lenders.

Should you apply for a mortgage after a work promotion?

A job promotion typically signifies career advancement and increased income, meaning it’s the perfect time to invest in a new property, right?

Actually, lenders don’t always agree. Before accepting your mortgage application, they often require you to demonstrate you can secure a higher annual salary on payslips covering 3-12 months.

This proves consistency in your financial capacity, a crucial factor in mortgage approval.

However, if you’re looking for a standard remortgage, post promotion is as good a time to do it as any when looking to be accepted.

Should you apply for a mortgage after taking a pay cut?

Taking a job for less money because you love it is often a wonderful thing; however, accepting a lower-paying job, while fulfilling, may raise concerns among lenders about your ability to meet your mortgage obligations.

Even if you have already have a mortgage pending, informing lenders of any pay reductions post-application is essential because they may want to reassess your loan.

If you are considering a pay cut, it might be worth considering your mortgage situation first.

What about if you’re self-employed?

If you’re’ self-employed, on a zero hours contract or work as part of the gig economy, your income can fluctuate, sometimes drastically.

Although you can be financially successful like this, it’s not always attractive to lenders because of the instability.

Lenders may request 1-3 years of financial records to assess your creditworthiness accurately.

If you’re debating leaving traditional employment, it might be appropriate to talk to a qualified mortgage broker to understand your options first.

Does the sector you work in make a difference to your mortgage application?

Yes, the industry you work in can impact mortgage approval timelines. Professionals in sectors like healthcare, education and public services often encounter fewer hurdles due to perceived job security.

Likewise, those with a strong history of consistent job roles in the private sector will have greater flexibility with lenders, as they’re able to demonstrate experience in the sector and alleviate fears of prolonged periods of unemployment.

People looking to embark on complete career changes are more likely to run into issues when trying to get a mortgage application accepted. In these instances, a period of 6-12 months is employment is usually required by lenders.

If you’re thinking about switching careers, it might be a good idea to renew your mortgage before embarking on your job search.

Ways to improve your chances of getting a mortgage while switching jobs

Navigating mortgage applications during job transitions requires a strategic approach.

Consider the following steps to enhance your chances of approval:

Consult Mortgage Experts: Seek guidance from qualified advisors, like at Your Mortgage People, who understand the nuances of the mortgage market.

Our expertise can help you identify suitable lenders and navigate complex application processes effectively.

In certain scenarios, some lenders are willing to accept 1 day employment applications.

In these instances, you’ll be required to hit criteria like:

  • Providing a copy of your employment contract
  • Demonstrating continuous employment without career breaks

If you need help to identify these offers, one of our CeMAP qualified advisors can scan the whole of market to help you find the lenders currently extending them.

Document Your Employment Status: Compile comprehensive documentation, including payslips, tax statements and employer letters, to substantiate your income stability.

Transparency and clarity in your application strengthen your credibility with lenders.

Increase Your Deposit: Offering a larger deposit can offset concerns about recent job changes, making you a more attractive borrower.

Additionally, explore options like offset mortgages, which leverage your savings to reduce interest costs.

While transitioning jobs is an inevitable part of career growth, it’s essential to approach mortgage applications strategically during these periods of change.

By understanding lender requirements, gathering relevant documentation and seeking expert guidance, you can enhance your prospects of securing a mortgage, regardless of your employment status.

If you want to understand the landscape a little better, speak to a qualified mortgage expert by calling us on: 01489 346624


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