If you have just agreed a contract for a new employed role, firstly congratulations are in order! Secondly, yes there are mortgage lenders that will consider a mortgage with a new job. Some will even consider you even if you haven’t started your new job.
What are the Mortgage Requirements?
Most mortgage lenders who will consider a mortgage when you have just started a new job will need to see a copy of your signed employment contract as a minimum requirement, others will want to wait for you first payslip. Mortgage lenders prefer full-time and permanent employed roles. Permanent employment means that there are no clauses to limit the length of your employment (such as a fixed term contract).
With most lenders, you will only be able to use your gross annual basic income figure – even if your new job is likely to include bonuses. Some lenders will also ask to see your very last payslip from your previous employer.
The rules are more accommodating for certain professions. For example, it is customary for nurses to move hospitals or trusts and this is not always seen as a new job.
What about my Probation Period?
Lenders who will consider mortgage applications when you are just about to / or have just started a new job role are also more likely to consider applicants who are within an employment probation period. There are mortgage lenders who will consider employment probation (whether it’s a 3-month or 6-month probationary period).
Our mortgage experts will be able to carry out an eligibility assessment without charge to determine which lenders we can approach when you are within your employment probationary period and have just started a new job.
What about Fixed Term Contracts?
New jobs on a fixed term contract are more tricky and it will depend on the contract wording. The contract will normally state when the contract expiry date is and say something like this: “There is no commitment to any subsequent career appointment”.
Mortgage lenders like to see experience when it comes to employment within fixed-term contracts and a minimum of 12-months experience with two years remaining on the contract is a common minimum requirement as well.
If you are between two fixed-term contracts, mortgage lenders generally do not like any gaps in employment at all. Some lenders allow a gap in employment but no more than a 12-week gap prior to the commencement of your new fixed term contract role.
Author: Ben, Glow Mortgage Advisor (CeMAP, BSc Hons)
Date Published: 26th February 2018.