There’s a common misconception that you won’t be able to get a mortgage if you’ve just entered a new role.
While it can be more difficult to convince mortgage providers to give you a loan if you have just started afresh at a new company, there are some lenders out there who will be willing to take a view on your circumstances, as long as you can prove you have a solid credit history and you’re going to be earning enough to cover your monthly repayments (and then some).
This is even true for first time buyers, who typically face challenges with securing mortgages because they have never entered into a finance agreement of this size and scale before.
Things to consider as a first time buyer
Lenders define a first time buyer as someone purchasing a property who has never owned a home previously.
If you’re a first time buyer, you might not fully understand the mortgage process, so it can be really helpful to speak to an expert to talk you through it. He or she will explain all the key terminology and help you work out how much your monthly repayments will be, as well as how much the mortgage will cost you over the course of your full term.
One key thing to ensure from the start is that you have all the right documents to hand. Any errors, inconsistencies or omissions from your paperwork could be a red flag to your lender and could put you in a poor position when it comes to being accepted for a mortgage.
As a first time buyer, you might not have a strong credit history. Chances are you’ve never had to pay back this kind of debt before. From the lender’s perspective, taking you on as a mortgage customer is a bit of a gamble, because they have no examples of your reliability as a debtor. This is why it’s so important to use a mortgage broker when looking to apply for a first time buyer mortgage. Their expertise will help you meet lender criteria, which in turn will give you a better chance of being accepted for a mortgage and securing your dream home.
How might your employment status affect your chances of getting a mortgage?
If you’ve just started a new job, you may find it difficult to track down a lender who will accept you for a mortgage. This is because you’re seen as a higher risk due to the fact you are likely to be in a probationary period, and so your employment – and therefore your income – is not yet guaranteed.
Some lenders will advise that you need to have been in your role for at least six months before applying for a mortgage. Many will ask for evidence of employment from the past one to three years. But not everyone can provide this kind of information – especially in these turbulent economic times.
Thankfully, there are specialist lenders in the market who will consider your application even if you’ve only just started out in a new position.
One of the factors that may help your application is if you’ve been in continuous previous employment before beginning your new job. This will evidence your usual level of income and ability to meet your repayment schedule(s).
If you’ve just started a new job and are looking to take out a mortgage, we would advise that you speak to a specialist broker who will be able to point you in the direction of lenders who are more likely to accept you. Getting expert advice now will stop you from wasting time and potentially damaging your credit score further with repeat credit checks.
Why use a mortgage broker?
CLS Money has a great deal of experience in securing mortgages for first time buyers in all kinds of personal circumstances – including those who have just started a new job.
With more than 2,000 5 star reviews to our name, we’re renowned for our straight-talking approach and our commitment to delivering an impeccable service for our customers, many of whom are understandably nervous about comparing mortgage deals and approaching lenders.
We’ll take the hassle out of the entire process and do everything we can to make sure your application is successful. Our brokers offer evening and weekend appointments, and are available to chat over the phone, online or in person, depending on what suits you best.