Can You Get A Mortgage If You’ve Recently Changed Jobs?
Starting a new job can be an exciting step, but if you are also planning to buy a home, you may wonder whether changing employers could affect your mortgage application.
Switching jobs does not automatically prevent you from getting a mortgage. However, lenders will look at your employment circumstances, income and overall financial position when deciding whether you can afford the mortgage you are applying for.
Can you get a mortgage after changing jobs?
Yes. Many mortgage lenders will consider applications from people who have recently changed jobs, particularly if the new role is permanent and your income is similar to, or higher than, your previous salary.
A lender may want to understand why you changed jobs, such as needing to relocate nearer to the office, and whether your new employment is secure. They may also ask for evidence of your new salary and employment status.
If you have only recently started, you might not yet have several months of payslips. This does not necessarily mean your application will be rejected, but different lenders have different criteria.
Does being in your probation period matter for a mortgage?
Being on a probationary period can make some applicants nervous, but it does not automatically rule out getting a mortgage.
Lenders assess applications individually. Some may be comfortable with an applicant who has recently started a permanent position and is still within their probation period, while others may have stricter requirements.
Your previous employment history can also be relevant. If you have moved directly from one permanent job to another without a significant gap in employment, this may provide useful context for your application.
What if your new job pays more?
A higher salary could potentially increase your borrowing capacity, but lenders do not simply look at your basic salary and multiply it by a standard figure.
They will consider your income alongside your regular outgoings and other financial commitments. If your new role includes overtime, bonuses or other variable income, how much of this a lender will consider can also vary.
This is one reason why speaking to a mortgage broker can be useful. A broker can help identify lenders whose criteria are appropriate for your circumstances.
What documents might you need?
You may be asked to provide evidence of your new employment and income. Depending on the lender, this could include:
- Your employment contract or offer letter
- Recent payslips, if available
- Bank statements
- Proof of your previous employment or income
- Details of any probationary period
- Information about bonuses, overtime or other additional income
The exact requirements will depend on the lender and your individual circumstances.
Get mortgage advice before making assumptions
Changing jobs shortly before buying a home does not automatically put your plans on hold. You may still be able to get a mortgage even if you have only recently started your new role.
The important thing is to understand how your individual circumstances fit different lenders’ criteria before making an application. Getting professional mortgage advice early can help you prepare the right documentation and avoid making unnecessary applications.