New job? See how it might affect getting a mortgage
13th September 2019
Got a new job and wondering about buying your own place or moving?
Before you start making plans for the future, it's important to know that getting a new job can affect your mortgage.
Timing is everything
To consider you for a mortgage, some lenders will insist you’ve been with your current employer for at least three months or you’ve had a minimum period of continuous employment.
Barclays, for example, require either three months with your current employer or 18 months of continuous employment.
There are a few lenders who’ll consider you for a mortgage if you’re starting a new job within the next three months as long as you’ve got a contract of new employment. These include Halifax, Nationwide and TSB.
How your profession could get you a bigger mortgage
You might be able to get a bigger mortgage if you’re in a certain profession.
Some lenders offer ‘professional mortgages’ to people in certain jobs as they take into account your future earning potential.
In some cases, you’ll be able to apply for a mortgage worth 5.5 times your salary rather than 4.5 which is what the majority of lenders loan up to.
The Hinckley & Rugby Building Society, for example, allow doctors, dentists, lawyers, barristers and ACA/ACCA qualified accountants to borrow up to 5.5 times their salary at up to 80% loan to value (LTV) and 4.5 times above 90% LTV. (1)
Other professionals that qualify for professional mortgages include:
Why you shouldn’t ‘massage the truth’ about your new salary
Whatever you do, don’t be tempted to inflate your new salary in order to get a bigger mortgage.
Your mortgage will be declined if you don’t have supporting documentation, such as payslips, to confirm how much you earn.
Being declined for a mortgage can affect your credit score, which could make it more difficult for you to get a mortgage in the future.
Get advice from an expert about your salary
If you’re not sure what to include as your salary - such as bonuses and commission - get some free advice from a mortgage broker so your application is in top shape.
They’ll also help you work out what you can realistically afford.
“Starting a new job is really exciting, and it could lead to you buying your first home or climbing up to the next rung of the property ladder,” said Prakash Patel, a Mortgage Adviser at Trussle.
“Your new job could well have a bearing on the type of mortgage you could get. Professional mortgages can typically allow you to borrow more, but buyers employed in other sectors have lots of choices too. Get some free advice from a mortgage broker if you need it. They often have access to deals that aren’t available elsewhere.”
(1) Hinckley & Rugby