Are you keen to move home, but concerned that your employment status might hinder your chances of getting a mortgage?
It’s true that it can be trickier to get a deal if you’ve recently started a new role and are still in your probation period. But with our experienced brokers by your side, you’ll have the best chance of securing great rates and terms with a mortgage provider that is prepared to take a view on your current situation and consider your case.
It's true that probabtionary periods can cause problems for buyers and mean fewer lenders are available, but with CLS on your side we can make getting a mortgage far simpler than struggling with the high-street lenders.
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 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 your probationary period affect your chances of getting a mortgage?
If you’ve just started a new job and are in your probationary period, you may find it challenging to get a mortgage. This is because, from the lender’s perspective, your source of income has not been secured yet, so you’re considered to be a riskier candidate for a loan.
While there are many High Street lenders will immediately turn away applications from home movers who are still in their probation period, there are a growing number of companies who specialise in providing mortgages to recently hired employees. Whether your probation is three months, six months, or you'll be monitored for the first two years of your mortgage term, there are ways to land you the mortgage you want, and we're here to help you get your application approved.
You may find that the lender will want to get in touch with your employer to confirm the length of your probationary period and to review your job offer as part of their evaluation. It’s also worth noting that underwriters are unlikely to be able to factor variable pay elements, such as bonuses or commission, into your overall income when you’re still in your probation period. This means you might not be able to rely on these variable projections to generate the multiples you need to secure your preferred loan amount.
If you’re still in your probationary period awaiting provision of a permanent employment contract and are looking for a mortgage on your next property, we highly recommend working with a specialist broker who will be able to point you in the direction of lenders who are more likely to accept you.
Why use a mortgage broker?
The mortgage advisers here at CLS Money can give you expert advice, without the jargon.
We’re famed for our fast, communicative and highly personalised approach to working with our customers; two things that are illustrated by the fact we have received more than 2,000 5 star reviews from home movers who have used us to track down their mortgage. Many of these customers will have still been in their probation period when they received the news that their application had been accepted.
While it might not make too much difference with many mortgage lenders, CLS partner with the kinds of mortgage providers that will consider your previous employment history, your basic salary, and a proven track record to help paint the most accurate picture of the type of borrower you are. As a whole of market broker, we'll track down the right lender for you, providing a realistic option for your mortgage application.
We're here for more than probationary period mortgage lenders
We think it's great you've landed a new job and we'll do everything we can to help you meet the lending criteria that lands you a mortgage – despite any annoying probationary periods. However, as well as helping those in probation periods find the mortgage lenders for them, we're here to help borrowers in all kinds of other specialist situations.
CLS partners with mortgage providers covering every unusual or unique situation.
We take all individual circumstances into consideration – we're not solely about ticking boxes.
Delivering specialist mortgage advice for borrowers rejected by high street lenders.
Mortgages for borrowers with poor credit or other debts.
Contact us today to get a free, no-obligation quote for your next mortgage. You can meet us online or in person, and we’ve got plenty of evening and weekend appointments available if you’d prefer to chat outside of normal working hours.