Can You Get a Mortgage With a New Job?

Yes, potentially. Starting a new job does not automatically prevent you from getting a mortgage.

Different lenders assess new employment in different ways. Some may want several months of payslips, while others may consider an application using your first full payslip. There are also lenders that may accept a signed employment contract or formal appointment letter if you haven’t been paid yet.

Your wider employment history is likely to be important. Moving directly from one permanent role to another can often be viewed more favourably than returning to work after a long break, although options may still be available in both situations.

The lender will also consider the rest of your application, including:

• Your income and regular financial commitments
• Your credit history
• The size and source of your deposit
• The amount you want to borrow
• The type and length of your employment contract
• Whether your new income is fixed or includes variable payments

Not necessarily.

Some lenders ask for three months of payslips, but others may only require your latest payslip when assessing basic employed income. If you haven’t received one yet, certain lenders may instead consider an open-ended employment contract or a letter of appointment.

The position can be different where your earnings include overtime, bonuses or commission. A lender will usually want to see a history of variable income rather than relying solely on what you expect to earn in the future.

This is why the lender you approach can make a significant difference. Meeting one lender’s criteria does not mean you will meet every lender’s criteria—and being declined by one does not necessarily mean a mortgage is unavailable elsewhere.

In some cases, yes.

Certain lenders may consider income from a job you have formally accepted but haven’t started yet. You will normally need a signed employment contract or a letter from your new employer confirming details such as:

• Your start date
• Your basic salary
• Whether the role is permanent or fixed-term
• Any guaranteed allowances
• Your contracted hours, where relevant

Some lenders place a limit on how far in the future the job can begin. For example, they may require you to start within the next few months. The precise timeframe and evidence required will depend on the lender.

This can be particularly useful if your house purchase or remortgage coincides with a career move, as you may not always need to postpone your plans until several payslips have been issued.

Being on probation does not automatically rule out a mortgage either.

Some lenders are comfortable accepting applicants during a probationary period, particularly where they have moved directly from another employed role or have an established history in the same profession.

Others may take a more cautious approach or ask for additional evidence. They might consider:

• Your previous employment history
• Whether you have changed career or remained in the same field
• The length of your probation period
• Whether the employer can end your employment at short notice
• Any gap between your previous and new jobs

You should disclose your probation period accurately. Trying to hide a recent employment change could cause difficulties later when the lender checks your documents or verifies your employment.

A short break between two employed roles may be acceptable to many lenders. A longer period without employment could reduce the number of available options, but it does not necessarily make a mortgage impossible.

The lender may want to understand:

• Why you were out of work
• How long the gap lasted
• Whether you have now returned to permanent employment
• Whether you have received your first full salary
• Your previous experience in the same type of work

Where there has been a longer gap, waiting for your first payslip—or building a slightly longer record in the new job—may open up more options. However, it is worth checking before assuming that you must wait.

Some lenders may use a forthcoming pay rise or promotion when calculating how much you can borrow, even if the new salary is not yet shown on your payslip.

The increase would normally need to be formally confirmed by your employer. An email discussing a possible promotion is unlikely to be enough; the lender may require a letter addressed to you confirming your new basic salary and the date it takes effect.

A discretionary bonus or anticipated overtime is less straightforward because it is not guaranteed. These types of income are commonly assessed using a history of
payments.

You should tell your mortgage adviser and lender immediately if your employment or income changes after you apply.

A mortgage offer is based on the information supplied during the application. Changing employer, reducing your hours, moving from employed to self-employed work or experiencing a reduction in income could affect the lender’s decision.

The change may not cause a problem, but the lender may need to reassess affordability or request your new employment contract. It is far better to deal with this early than allow it to emerge shortly before completion.

Requirements vary, but it can be useful to have the following available:

• Your signed employment contract
• A formal job-offer or appointment letter
• Your latest payslip, if available
• Recent bank statements
• Evidence of your previous employment
• Written confirmation of a pay rise or promotion
• Evidence of your deposit

If any part of your income is variable, you may need additional payslips or evidence showing how consistently it has been received.

A new job, probation period or forthcoming pay rise does not necessarily need to put your mortgage plans on hold. The important thing is matching your circumstances with a lender whose employment criteria fit your situation.

At Crescent Mortgages, we can review your employment history, new contract and wider circumstances before recommending a suitable mortgage option. We do not charge a fee for mortgage advice.

Your home may be repossessed if you do not keep up repayments on your mortgage.