Mortgage advice for the home mover in a new job
In an ideal world, it would be preferable to be settled in a new job before applying for a mortgage, but life doesn’t always work like that.
Sometimes, you need to move fast on your application, even though you’ve only just transitioned into a new role and you’re likely to still be in your probation period.
While it might be harder to find a great mortgage deal in this scenario, it’s not impossible. If you'd like options against your current mortgage, landing a new job could feel like just the right time to get a new mortgage deal, too. Here’s what you should expect from the process, and how our experienced brokers can help you in your quest to secure the best rates and terms, despite your employment status.
Things to consider when moving between properties
A home mover is someone who already has a mortgaged or owned home and is moving into a new property. As a home mover, you can choose to ‘port’ your existing mortgage with your existing lender or apply for a mortgage with a different provider. Your mortgage broker will be able to advise you on the best option, based on your repayment history and the terms of your current agreement.
As a home mover, you are likely to have some general knowledge when it comes to finding the right mortgage and dealing with brokers. Whilst costs are important to you, you’re focusing on other factors for your move, such as achieving new lifestyle goals; upsizing to meet the demands of your growing family; or changing location due to work or family commitments.
You’re in a much stronger position than a first time buyer, because you have evidence of your ability to pay your mortgage repayments in full and on time, every month. This will put you in a favourable position when it comes to getting a good interest rate. You’re also likely to have built up some equity in your existing property, meaning you’ll be entering into a new agreement with a better loan-to-value (LTV) than before.
One of the most common problems that home movers experience is being stuck in a chain. This is the term used for a sequence of linked home purchases who are reliant on each other for the preceding and succeeding purchases; for example, those buying your house are reliant on you completing on your new home in order to move into your old one.
It’s important to stay in contact with your solicitor throughout the moving process to ensure everyone is kept up to date with potential move dates and any delays are communicated up and down the chain.
How will being in a new role 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 new 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 mortgage lenders will expect you to have been in your role for at least six months before applying for a new 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). It will also help if you have a record of on-time mortgage repayments during your time in your current property. Another worthy factor is that most new jobs come with a pay rise. That will also most lenders see your application as more favourable.
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?
Don’t leave your next mortgage to chance. Speak to our mortgage brokers today for expert advice on how to move forward if you’re in a new job or still working through your probation period.
As a specialist broker, we’ve helped countless customers find deals that suit their budget and their circumstances – even those who have changed employment just before or during their application. We track down the ideal home mover mortgage for everyone – whether in a new job, an unusual occupation, or for those with a variable income. However much you earn, we'll examine all the factors to find out your estimated annual income, ensuring your can meet your new monthly repayments and becoming a far less risky option for your choice of mortgage lenders.
Working with us couldn’t be easier. We offer flexible evening and weekend appointments, and you can meet with us online, by phone or even in person – whatever suits you. You’ll even get access to your dedicated CLS portal, which you can use to share and upload important documents, saving you tonnes of time on emailing paperwork back and forth.