Getting a mortgage with a new job or effectively managing your current mortgage when you get a new job can seem difficult. However, it does not have to be and it can often be that case that it is a relatively simple situation to negotiate. There are a fair few things that you have to consider when changing jobs, if can be a really stressful time.
There will be some questions that arise depending on your situation:
- Who do I have to tell?
- Can I get a mortgage with a new job?
- Will I have to wait before applying for a new job?
- Is there anything I can do to help myself with this stressful period?
Thankfully, we are on hand with the answers to these questions, as well as having a few more pieces of handy advice for people with new jobs.
Let your mortgage lender know when you change jobs
If you have an existing mortgage you do not have to tell your current lender about any job change.
However if you have been in the process of applying for a new mortgage, or extra borrowing on an existing one, then you are going to need to let your lender know that your employment status has changed. Whilst the change in job shouldn’t affect your chances of getting a mortgage with a new job, there are some factors that could count against you.
If you are seeing a reduction in salary from your previous job some lenders may see this as a negative and it could hamper your chances of acceptance, certainly it might mean they wont lend the amount you want. However, if you are seeing an increase in salary then you should be absolutely fine, there may just be a few things to consider which we will get on to.
You may have to wait
So, you may be thinking, ‘can I get a mortgage with a new job? And how long do I have to wait to apply?’ The answer really depends on your lender. You absolutely can get a mortgage when you are starting a new job, you may just have to wait a little longer before you can apply for your mortgage. It all comes down to your lender’s preferences.
If you are reliant on overtime, bonus, commission then some lenders will want to see at least six months proof of earnings before accepting you for a mortgage (and taking this into account), whereas others could need proof of between one to two years. If you are unsure, your lenders will usually have a policy in place, simply get in touch with them to find out what theirs is. There are even lenders that do not have a minimum policy in place, but you may need to use a mortgage broker to find them. If you would like to access this service with Stuart Brown, get in touch with us today.
Provide reliable proof of income
One of the first things to consider when getting a mortgage with a new job is the fact that your mortgage lenders will need to see proof of income. The very best way to do this is by showing them your payslips. You may have to wait again to do this effectively and it again all comes down to your lender’s preferences.
Some lenders would be happy seeing up to three months of income proof, whereas others may wish to see more. If you are starting a new job that has the same salary you could try showing income from, for example, three months of your old job and three months of your new job. If you do not wish to wait to accrue a selection of payslips you could ask your employer to send your lender a letter that clearly states your salary.
Keep a rainy-day fund for job transitions
This is a good idea for a number of reasons, not just for getting a mortgage with a new job. It is recommended that whatever your circumstances you should always keep a ‘rainy day’ fund just in case circumstances change. This is definitely the case when looking for a new job. Before you have even secured a new job you can be considering your long-term future, taking into account the possibility of a potential mortgage down the line.
Whilst you are in the process of looking for your new job, always ensure that you have a nest egg to sit back on just in case. You should never get involved with a mortgage lender, or even consider attempting to purchase a home or acquiring a mortgage if you do not have the funds. When you start a new job it can be tempting to jump straight in head first into getting a mortgage, but knowing that you may have to wait, and having a lump sum to fall back onto can be a great comfort during the whole process.
Get in touch with a professional
If you are still unsure about getting a mortgage with a new job then it is highly recommended that you get in touch with a professional mortgage broker. At Stuart Brown, we have years of experience handling all sorts of situations regarding mortgages and we are sure that we would be able to help you. Get in touch with us today for any further information you may need.
Beds 01525 877650 or Herts/Bucks 01442 252040 or Mobile 07710 770969
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up the repayments on your mortgage.