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 mortgage 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
Mortgage 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 the mortgage lender and may put you in a poor position when it comes to being accepted for your 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 your mortgage lender’s perspective, taking you on as a 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 applying 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 are 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. Even with a new job contract and a new income, lenders may see these as instabilities in their mortgage subjects. Anything that isn't a guaranteed annual income appears as some form of risk, and can require specialist finance.
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. Even when you thought starting a new job was the answer to your prayers, landing a new job mortgage can still mean jumping through a few frustrating hoops.
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).
Having as much information at hand to state your case is always beneficial. If you can provide your new job contract, evidence of your new income, any pay rises, proof of your annual income, work history, and anything else you think will help your mortgage application, your mortgage advisor can guide you towards the mortgage lenders most likely to approve you. A low credit score will also help you land the new mortgage deal you're looking for.
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 two thousand 5-star reviews to our name, we’re renowned for our straight-talking approach, expert mortgage advice, and our commitment to delivering impeccable service for our customers, many of whom are understandably nervous about comparing mortgage deals and approaching lenders.
Your CLS mortgage advisor will take the hassle out of the entire process, as we do everything we can to make sure your application is successful. Our mortgage brokers offer evening and weekend appointments – working around the hours of your new job – and are available to chat over the phone, online or in-person, depending on what suits you best.
CLS Money is here to help whatever your role or financial circumstances
A new job doesn't always bring the great changes we expect it to, but that doesn't mean the end of your hopes and dreams. CLS delivers where most lenders don't; so keep celebrating that new job – you can still get a mortgage, just not with the banks you'll find on the high street.
An unusual role or varied employment history are only a few of the items that many mortgage lenders steer clear of. Being in a probationary period, having a zero-hours job contract, an unpredictable annual income, or bad credit can all mean they'll refuse to offer mortgages to those who need them.
Our lenders will look deeper into your situation, seeing you as a human, not just another number on a chart, allowing us to find mortgages for almost every borrower. With tailored advice for every applicant, applying for a mortgage with CLS Money becomes far simpler for our customers than they ever expected.
New job mortgages
Personal mortgage advisor
Probationary period mortgages
Options on lowering monthly payments
Finding preferable interest rates
Getting a mortgage with CCJs, DMPs, and IVAs
Mortgages for self-employed workers and company directors