6th September 2024
Securing a mortgage is a huge milestone in life, offering stability and a chance to work your way up the property ladder. If you've recently started a new job, then you should take some time to learn about eligibility requirements for mortgages, as many lenders will be looking for a work history to support your application. In this article, we'll look at the intricacies of this situation to help you understand if you can get a mortgage if you have recently been employed.
When it comes to getting mortgage quotes, lenders tend to assess your eligibility by looking at factors like your financial stability and reliability. They do this by looking at your work history, with many lenders preferring to offer mortgages to applicants with two to three years of continuous employment. However, if you have recently changed jobs and entered a new role, this shouldn't automatically disqualify you from getting a mortgage.
For those who have recently started a new job, lenders may be able to examine your employment contract and the nature of your job. Permanent positions with a record of steady employment in similar fields can reassure lenders. If your job is on a contractual basis or classified as temporary, such as an IR35 contract, you may need to provide additional evidence of job security or future employability.
A common concern for those newly employed is the probationary period. Most lenders are cautious but still open to considering applications during this time. If your employment terms after the probation are favourable, such as a permanent contract, lenders may be more willing to offer a mortgage, sometimes requiring additional documentation or a larger deposit.
find me a mortgageAt the crux of your mortgage application is your financial status, as this is what lenders will look at to determine your eligibility. These financial considerations bleed into various aspects of your application, so understanding how they function can help you plan for your mortgage.
Your income is a key factor in determining how much you can borrow. Lenders will look at your salary and other sources of income, such as bonuses or freelance work, to assess your borrowing capacity. For the newly employed, providing a job offer letter and a detailed contract can help lenders understand your income structure.
Newly employed individuals may sometimes face higher scrutiny from lenders, who mitigate their perceived risk by requiring a larger deposit. Typically, a higher deposit not only eases lender concerns but also improves the terms of the mortgage, potentially lowering the interest rate.
Your credit score is another factor that plays a big role in mortgage approval. Ensure you have a good credit history by managing existing debts responsibly and making timely payments. For those with less credit history due to new employment, it's essential to demonstrate financial responsibility in other areas.
Before applying for a mortgage, research different lenders and their criteria. Some lenders may have more favourable terms for those with short employment histories. Preparing all necessary documents beforehand, such as proof of income, employment details, and financial statements, can streamline the process.
For complex mortgage applications such as these, it's well worth seeking advice from a mortgage advisor. Advisors such as our team at WIS Mortgages can provide insights into which lenders are more likely to approve applications from newly employed individuals. We can also provide valuable advice on improving your application and negotiating terms.
Although the best thing you can do to find a mortgage that is suitable for your circumstances is to work with a mortgage advisor, there are some things you can do to improve your chances of success. Below are a few additional tips for success that can help you secure a mortgage that suits you, even if you don't have the work history lenders are looking for:
While obtaining a mortgage when newly employed can be challenging, it is certainly possible with the right preparation and understanding of lender expectations. By demonstrating financial stability, meeting lender requirements, and possibly working with a mortgage broker, you can increase your chances of securing a mortgage. Owning a home is a huge milestone in life, and starting a new job should not deter you from pursuing this goal.
If you would like help with finding a suitable mortgage for your circumstances or have questions about securing a mortgage after starting a new job, then contact us at WIS Mortgages today..
As a mortgage is secured against your home it may be repossessed if you do not keep up the mortgage repayments.
Q. Can I get a mortgage if I have just started a new job?
A. If you've just started a new job, then lenders may be less willing to offer you a mortgage. However, some lenders will look at the specifics of your new job, as well as your credit score and other factors, to determine your eligibility for a mortgage if you're newly employed.
Q. Can I get a mortgage if I am newly self-employed?
A. Being self-employed adds another layer of complexity to your mortgage application, which means lenders will be more wary of offering you a mortgage. You should still be able to secure a mortgage from some lenders but expect to provide more evidence to demonstrate you have a steady income as a self-employed individual. There are self-employed mortgages that you may wish to consider, too.
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