Getting a mortgage in a New Job

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Article created by Christian Duncan, Director – Mortgage and Protection Adviser

Last updated 20th January 2024

Whilst the UK suffers a cost of living crisis it’s common to come across clients looking to move jobs whilst securing a mortgage. Sometimes a client might have a job offer on the table but are left unsure how this will affect their situation. This guide should answer the majority of your questions. if you are left with any unanswered questions then please submit a contact request using the form above.

Can I get a mortgage if I’ve started a new job?

Certainly! If you’re embarking on a new job, obtaining a mortgage is within reach, especially when applying with the appropriate lenders. It may come as a pleasant surprise that you can initiate the mortgage application process even before commencing your new job or receiving your initial pay slip.

Can I get a mortgage if I’ve got a job offer letter?

Certainly! If you’ve recently interviewed for a new company and secured a position, you can explore mortgage options. Lenders typically request a copy of the job offer or proposed employment contract, along with additional details about your employment history and industry experience.

When can I apply for a mortgage after starting a new job?

Immediately, you can actually apply for a mortgage even if you haven’t started the new job but you will be expected to supply some documentation to support your application. Your new job must be scheduled to start within the next 3 months but this kind of application is perfectly normal and very common.

What deposit is needed for a new job mortgage?

Like the majority of mortgages having only a 5% deposit is perfectly acceptable. The larger the deposit you have the more attractive you will be to a lender but 5% deposit mortgages for applicants who have started or are about to start a new job within the next 3 months are perfectly acceptable.

How much can I borrow with a new job mortgage?

How much you can borrow is subjective and will depend on your circumstances. There are lenders that will give up to 5.5x income for a first time buyer who’s looking to secure a mortgage whilst starting or about to start a new job.

Are interest rates higher for a new job mortgage?

No, there are a handful of mainstream / high street lenders that poses some of the most competitive interest rates on the mortgage markets that are happy to offer mortgages to applicants that are in the process of moving home.

Is it a good idea getting a mortgage when moving jobs?

It doesn’t really matter. There are more convenient and less stressful times in your life to start looking for a mortgage but there are plenty of lenders that are happy to product a legally binding mortgage offer whilst you are in the process of moving jobs.

If I move to a different part of the country can I still get a new job mortgage?

Yes, absolutely. Lenders are familiar with this kind of arrangement. It’s a little bit of a “which come first the chicken or the egg” scenario.

Mortgage lenders understand that moving home can often come hand in hand with applying for a new mortgage and pursuing your own goals, dreams and aspirations. As a mortgage broker it’s my job to ensure your case is packaged correctly and the relevant information submitted to the lenders underwriter to ensure your intentions to relocate are crystal clear.

All lenders will look at the viability of your new job. For example if you’re looking to buy a home in Manchester but you have an office based job in London. They will want to understand how feasible this is going to be and look at the costs in carrying out the commute.

Similarly if you’re living in Manchester working from home for a company based in London with little to no traveling this is feasible and deemed satisfactory. Its important to note a lender might want write proof from your employer to evidence this.

Can a pay rise be be used for a new mortgage?

Yes, if you’re currently employed and have a pending pay rise or have been awarded a pay rise lenders will allow us to use this to increase your affordability.

How much does new job mortgage advice cost?

When applying for a mortgage a mortgage its important you get the correct advice the first time. New job mortgages are relatively straight forward cases and tend not to be complex. Here at the Manchester Mortgage Centre we are familiar with the lenders who look at these kinds of applications favourably. Our costs for this kind of mortgage typically are £495 split into two parts. Decision in principle followed by full application

New Job Mortgage Frequently Asked Questions

What documents will I need to supply?

When applying for a new job mortgage you can be expected to supply the following documents

3 Months Bank Statements
Most recent 3 Months Payslips (From current or previous employment)
Photo ID such as Passport
Address ID such as Driving Licence
A job offer letter or contract

What if I was an agency worked prior to this?

Being an agency worker perhaps on a zero hour contract before applying for a mortgage with a new job offer is very popular. Often agency workers enjoy the flexibility of working on an agency before being offered a full time position within a firm. This is probably one of the most popular kinds of new job mortgage applications.

Can I apply for the mortgage with somebody else?

Absolutely, although your employment circumstances aren’t straight forward this wont stop you applying for a mortgage with somebody else. Perhaps a friend, family member or partner.

What if I have got bad credit?

Having bad credit can often limit the amount of lenders available to an application but in most cases doesn’t stop somebody from securing a mortgage. Applying for a new job mortgage and having bad credit is very much possible.

Do I need to tell the mortgage company if Ive got a new job?

If you’ve applied for a mortgage and are awaiting a decision or have received your offer and your circumstances change, its important you keep your mortgage broker and or lender in the loop.

Is it hard to get a mortgage with a new job?

Knowing which lenders are comfortable with this scenario is only half of the battle. Understanding how the rest of your circumstances fit with each lender is the other half. We would always advise using the services of a mortgage broker for this kind of application. Moving home and starting a new job are two of the most stressful and exciting things you will participate in. Allow us to take the stress away from your journey.

Will a gap in my employment stop me getting a mortgage?

No, having small gaps in your employment wont stop you getting a mortgage but you can expect a mortgage lender to ask questions about why you had a gap. Maintaining continuous employment will get your brownie points with a lender but don’t worry if you haven’t. Discuss this with your broker.