If your mortgage is up for renewal, you’ll want to look around to see if you can find a more competitive deal. But if you’ve just started in a new job – and are working your way through your probation period – you may find it difficult to gather the employment records that most lenders want to see before they’ll agree to give you a loan.
However, as long as you can prove that you have managed your mortgage repayments well during your current term and you can meet any other important eligibility criteria specified by the provider, it is possible to secure an agreement that’s just as competitive as your existing deal – if not better.
When do you need to remortgage?
Remortgaging a property is the process of applying for a mortgage with a new lender without physically moving between locations.
There are a few reasons why you may be considering remortgaging your property. Maybe you simply want to get a better deal and take advantage of cheaper rates elsewhere. It could be to do with the healthy pay rise that came with your new job. Perhaps you need to raise money for home improvements and other large purchases. You can do this by releasing cash from your existing mortgage and upping your monthly repayments or the length of their mortgage term as part of a revised agreement.
Remortgaging can also be a way to consolidate other existing debt and pay it off within your monthly mortgage payments. However, although interest rates on mortgages are often lower than on personal loans, you could end up paying more overall if you choose to take the mortgage out over a longer term.
If you’re looking to remortgage your property, the cost of your new agreement will be one of the biggest factors in your decision-making process. But there are other things to think about – such as whether the mortgage is portable, whether the lender will allow you to overpay on your repayments, what the exit fees are, and whether the term length suits your needs. All of a sudden, a new mortgage application might not looko as straightforward as you hoped it would be.
How can being in a new job affect your chances of getting a new mortgage?
If you’ve just started a new job, you may find it difficult to track down a mortgage lender who accept liability with your change in employment. 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. Changing jobs is great news for you – they almost always come with pay rises, after all – but they can also lower your mortgage chances.
Some mortgage lenders will advise that you need to have been in your role for at least six months before you remortgage. Many will ask for evidence of employment from the past one to three years, as proof of your earning history. 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).
When it comes to getting a mortgage with a new job, specialist lenders will look deeper into your circumstances than the usual mainstream lenders. That often means checking bank statements, considering any pay rise, your total new income, what's covered in your new contract, and your credit history. Not every lender is dictated by a hard and fast selection of checkboxes to tick off; many will happily work with a borrower with a proven track record, showing a steady employment status in the past.
If you’ve just started a new job and are looking to remortgage, we would advise that you speak to a specialist broker who can point you in the direction of mortgage 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?
As mentioned, reapplying with multiple mortgage providers can actually do your case more harm than good. For the best results (with the least hassle), contact CLS Money today and arrange a free, no-obligation consultation with one of our specialist advisers. Your mortgage advisor will deliver tailored advice on how you can meet the lender criteria when starting a new job, utilising your higher salary and earning history as a starting point.
With access to the whole of the market – not to mention many years’ experience in sourcing mortgages for new employees – we really are perfectly placed to support you through the remortgaging process. We’ll present you with a series of quotes from suitable mortgage lenders. Then, once you’ve chosen the rates and terms you prefer, we’ll handle your entire application and make sure everything is ready for the switch.
CLS Money is here to help you get a mortgage, whatever your circumstances
Getting a mortgage with a new job isn't always straightforward. You'd like to think that the banks or lenders would be as happy as you to see you land a great job with a pay rise, yet to them, without the stability of time on their side or if there's a probationary period involved, you can still look like a risk to them.
We provide mortgage advice to anyone in a situation that typically gets overlooked by traditional lenders. Whether you're self-employed, on a new contract with your current employer, suffered from some form of bad credit, a company director or working in another role that provides an approximate annual income, we're here to help.
Expert mortgage advice for every situation
Complete assistance with every mortgage application
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Lower your monthly payments
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CLS can find mortgages for even the least hopeful borrower. Give us a call for a no obligation chat to determine your best mortgage chances. With an affordability assessment and the right advice, you could land the remortgage deal you'd set your heart on – despite the change to your new job.