Article created by Christian Duncan, Director – Mortgage and Protection Adviser
Last updated 5th January 2024
Getting a mortgage if you’re in a probation isn’t as difficult as you might believe. Lenders understand that people decide to move job at the same time as committing to a mortgage and that often comes with a probation period.
Can I get a mortgage in a probation period?
Yes, you can, but be prepared: it might not be as straightforward as a standard mortgage application. The probationary status of your employment introduces an element of risk that can be a red flag for lenders.
The concerns stem from the potential instability of your newly acquired position, where contracts can be terminated with minimal notice. This could jeopardise your ability to comply with long-term financial commitments like a mortgage.
Can I get a mortgage if I haven’t started my new job yet?
Yes! Absolutely. There’s no requirement to have started your new job or the need to provide the typical 3 month’s payslips to secure a mortgage. All lenders have a different appetite to risk. Some are happy to issue a mortgage offer based on a written job offer, usually a contract of employment that is due to start within the next 3 months.
How Many Months do you have to be in a job to get a mortgage?
Zero! Yes, that’s right. As mentioned above there’s no requirement to have started the new job or have been in your job for a minimum period of time. If you’ve been in your job for 3 months this will open, you up to more lenders but this doesn’t have to be a deal breaker. If you speak to a mortgage broker and discussing your circumstances, they should be able to provide you with a comparison.
Do I have to wait 6 months to get a mortgage?
No. There’s no need to start a job and wait to receive that 6th payslip to secure a mortgage.
Can I get a mortgage with 1 month’s payslip?
Yes, having one month’s payslip would be advantageous over only having a contract of employment but we are able to help clients who cant.
Do I need a permanent job to get a mortgage?
No. Your employment doesn’t have to be permanent to get a job. Lenders like to see continuity in your income with very little gaps. For example, if you’re a zero-hour agency worker you can get a mortgage, but you will need to provide 12 month’s payslips to evidence your previous 12 months income. Some lenders are comfortable with this, and others will require two years income proof.
Mitigating the Risk: Lender Perspectives and Criteria
Lenders tend to scrutinise various aspects of your employment when evaluating your application. Your job type, for instance, could work in your favour if you’re in a sector viewed as stable, such as education or healthcare. Length of probation and amount of time served in your new role also weigh heavily in their assessment.
Lenders derive comfort from your experience in the sector, and consistent work history exhibits reliability.
Does the length of my probation period affect me getting a mortgage?
With certain lenders there are limitations on the length of the probation. It’s important we fully understand your circumstances to ensure we place you with the correct lender the first time.
Would I get a better mortgage after my probation period has ended?
Not always! Some of the largest and most competitive lenders in the UK will offer you a mortgage if you’ve only just started a new job and have a probation period.
Believe it or not there are a handful of lenders that will offer a mortgage if you haven’t yet started that new job yet!
With this in mind my advice would be to book a call with me and let’s run over your circumstances. We can make some cost comparisons and workout the best time for you to apply for a mortgage.
Is it a good idea to get a mortgage in a probation period?
That completely depends on your circumstances. Taking out a Mortgage and committing to buying a property are both huge commitments. You should only consider these if you’re sure that your income and ability to service the mortgage are sustainable.
How many payslips will I need to provide for a mortgage whilst in a probation period?
If you are looking to apply for a mortgage, whilst in a probation period then there is a good chance you might not even have your first payslip. Yes, that’s correct. You can apply for a mortgage with no payslips. Certain lenders are happy to accept a signed contract in place of payslips.
Although lenders will accept a signed contract you will often open yourself up to more lenders if you do have a couple of payslips, but this isn’t essential.
How much deposit will I need if I want to get a mortgage whilst in a probation period?
When applying for a mortgage whilst in a probation period the deposit amount doesn’t really differ. There are lenders that will accept a deposit as small as 5%.
The larger the deposit you have, the more likely you are to be accepted and at a more attractive interest rate.
How much can I lend during my probation period?
The amount that you can lend doesn’t really differ when you’re in a job that’s still under probation.
Will it cost me more money to get a mortgage in a probation period?
No! The costs in securing a mortgage whilst in a probation period are exactly the same. You can expect the usual costs in obtaining any mortgage.
- Mortgage Broker Fee
- Lender Product Fee
- Valuation Fee
- Survey Fees if applicable.
Because your circumstances are a little more unique this might reduce the lenders available to you. This could mean that the lenders that are available aren’t the most competitive, but your mortgage broker will be able to make the comparison for you.