Starting a new job can be an exciting change, whether you’re moving to a new employer, taking a promotion or becoming self-employed. But if you’re also planning to buy a home or remortgage, you may be wondering whether changing jobs could affect your mortgage options.
The answer will depend on your circumstances and the lender you approach.
Can you get a mortgage after starting a new job?
You don’t necessarily need to have been with an employer for several months before applying for a mortgage.
Different lenders have different criteria. Some may want to see that you have completed a probationary period, while others may consider an application soon after you have started a new role.
They may look at factors such as your employment history, your new salary, whether you are remaining in the same type of work and the overall affordability of the mortgage.
In some circumstances, a lender may even consider an application before your new role has started, provided suitable evidence of your employment and income can be supplied.
What if you’re becoming self-employed?
Moving from employment into self-employment can change the way lenders assess your income.
Rather than relying on payslips, lenders will usually want evidence of your earnings and the financial performance of the business. The amount and type of evidence required will vary between lenders and according to how long you have been trading.
This could include:
Having a shorter trading history does not necessarily mean a mortgage is impossible, but the number of lenders and products available may be more limited.
Should you remortgage before changing jobs?
If your current mortgage deal is approaching its end and you’re also considering a job move, timing may be worth thinking about.
In some circumstances, applying before changing jobs could provide a wider choice. In others, waiting until you have started your new position may make little difference.
There isn’t one approach that will be right for everyone, as lenders assess employment changes in different ways.
It can therefore be useful to look at your mortgage options before making any major changes to your employment, particularly if your current mortgage deal is due to end soon.
What documents could you need?
Being prepared can help make the mortgage application process more straightforward.
If you’re employed, a lender may ask for:
If you’re self-employed, you may also be asked to provide tax calculations, tax year overviews, business accounts and other supporting financial information.
Exactly what you need will depend on the lender and your individual circumstances.
Changing jobs doesn’t necessarily stop you getting a mortgage
A new job, probationary period or move into self-employment does not automatically prevent you from getting a mortgage or remortgaging.
What matters is how a lender assesses your income, employment history, affordability and wider financial circumstances.
If you know a change of job is coming and you’re also thinking about buying a property or remortgaging, understanding your options beforehand can help you plan your next steps.
Speak to Oviso
If you’d like to discuss how a change in employment could affect your mortgage options, get in touch with one of our advisers.
To find out more about mortgages, personal insurance, business insurance and protection or to discuss the options available for your circumstances, contact our team of advisors
