How your new job could make getting a mortgage difficult

Starting a new job is good news for most people, especially if it means you will get a salary increase. However, it is possible that a mortgage application could be refused as a result.

Although all lenders have varying criteria, most will want a mortgage applicant to have been in employment for three years. Some will consider an applicant if they have been in employment for three months or less. However, other criteria will be taken into consideration, including credit record, employment status and age.

The reason why a lender may refuse a mortgage application if the applicant has just started a new job, is due to the increased risks. If you don’t pass your probation period, or there are redundancies, you may not be able to afford the monthly repayments.

To increase your chances of being accepted, request a written statement from your new employer, which states how much your salary is, as this may mean that you can borrow slightly more. If your salary has decreased, you will probably be offered a lower amount.

If at all possible, try to wait to buy a new house until you have been in your new job for at least six months, or delay starting a new job until you have bought a new home. To help you decide which option is best, a mortgage adviser will be able to help, as they have studied on a CeMAP course to learn more about mortgage applications and lender’s criteria.


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