Will starting a new job harm my mortgage application?
If you’re not careful, getting a new job can alter your mortgage eligibility. Read on to find out why and how you can get around any potential problems.
For those of you reading this asking why starting a new job might affect your mortgage eligibility, the likelihood is that it will. This is because when mortgage lenders are conducting their affordability assessment they prefer you to have been in work for a long period of time. But don’t worry, we’re here to show you how it can find a solution and stay one step ahead in the hunt for your new home!
Why might changing jobs prove a problem for your mortgage eligibility?
The sad truth is that lenders can be hesitant to grant you a mortgage if you’re starting a new job. Why? The main reason lenders think this is because of the risks involved with starting somewhere new. For example, if you’re put on a probation period there’s going to be a possibility that the company terminates your contract after during your probation period. Alternatively, if your new employer needs to make cuts then new employees are usually the most vulnerable, meaning you would be susceptible to redundancy. But enough doom and gloom for now, let’s find out how you can prove your mortgage eligibility.
What’s should your solution be?
Readers, if there’s a will there’s a way. If you are earning more money in comparison to your previous job and still working within the same industry then this is a great indicator for lenders that you can afford a mortgage & you are in a stable environment. But what if you’re earning less? Although this will affect the amount you can borrow, if you can prove to your lender that this level of income is sustainable then your mortgage application can still go ahead. Though remember, this will ultimately be subject to your new mortgage amount being able to cover the property that you wish to buy. With moving jobs, stability is the key. Moving from one company to the next is a way of life but, if your changing to a radically different career path then, this will sound alarm bells to the lender & they may want to see a minimum length of service before considering your application. A career change from Office Administrator for a Tech Company to Office Administrator for a Service Provider is fine, a move from Office Administrator for a Tech Company to employed Scaffolder will need a little extra consideration.
Any readers that are recently self-employed, we’ve got you covered too. Similar to those who have just moved into new employment you’ll need to prove your income. The main difference is in proving income. With the newly employed role lenders are happy with a copy of the employment contract & say three months pay slips. With the newly self-employed you really can't prove any type of income until you have completed your first year as self employed.
Should you delay getting your mortgage?
If you feel like your mortgage eligibility isn’t a nailed-on certainty, then it might be a good idea to postpone it for a short while. It may be worth waiting until your probation period has finished or until you're happy with your career move.
If you’ve got any more questions, then don’t be afraid to contact one of our team members at Mortgages Online. We can offer you impartial and free mortgage advice on a multitude of lenders that’ll be willing to take your scenario into account. This’ll be key for your mortgage eligibility and for you to get the move of your dreams with as little as problems as possible!
So, what are you waiting for? Get in touch! We can also offer you a free life insurance quote once your application is completed. All of this for free – no need to get your credit card out!
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