Mortgage for People With New Jobs

September 12, 2020 by in category mortgage in London tagged as with 0 and 0

Generally, the less time you’ve spent working for your current employer, the more of a risky investment you’ll be considered by the lender. Though you may have to look around a little to do so, you can easily find a good mortgage if you’ve recently begun a new job and we’re here to help in that regard.

This Handy Guide Will Tell You About:

Taking out mortgages when changing contracts

Taking out mortgages with a new job

Pay raises and mortgages

Taking Out Mortgages When Changing Contracts

Changing contracts with the same employer can be problematic when you’re asked to provide the mortgage company with multiple payslips to prove your income.

Though changing contracts is more of a logistical issue, as long as you can explain your situation to the lender, you should have nothing to worry about. Ideally, you must occupy some form of written evidence from your organisation’s HR department explaining your position to cover all ground.

Taking Out Mortgages With A New Job

For plenty of reasons, mortgage providers tend to look somewhat sceptically at people who’ve been employed at a job for less than one year, which makes it difficult to borrow if you’ve recently started working with a new company.

One of the most important reasons is that when enforcing redundancies is concerned; since companies operate on a last-in, first-out basis. Meaning simply, that your position is less secure if you’ve spent less time in it. This reason has adverse effects on your credit rating and ultimately makes you a more risky candidate for lending.

Many lenders will require you to be employed for as much as three years in the one job before giving you a mortgage. Some will ask for as little as a quarter of a year, and some will be willing to lend straight from the beginning. It’s all based on the particular building society or bank, and therefore, you should attempt to search around the market before throwing the towel.

If you have a new job and are working on a probation period, taking out a mortgage can be challenging as the lender has no guarantee of the permanency of your employment. However, this is not so with all mortgage providers, so be sure to survey the market to see what you can get your hands on.

Another excellent way to do this is to compare mortgages online using one of the many unbiased and free online mortgage comparison services.

Regardless of how long you’ve been employed, a mortgage broker in London can help you get the best mortgage deal possible so that you may start borrowing and move into your new home as soon as possible.

Pay rises And Mortgages

If you’ve recently had a raise in your salary, you’re likely to opt for a mortgage repayment plan that reflects your increased pay. But, as is the case with a frequent change in contracts, it’s highly probable that you won’t have multiple payslips available to prove the consistency of your income to the mortgage company.

Yet again, if you can extract written evidence from your employer explaining that your recent raise is permanent, then you’ll be set to apply for a mortgage with it in mind.  

London Mortgage Advice Ltd is authorized and regulated by the Financial Conduct Authority for residential mortgages and non investment insurance business.

Although London Mortgage Advice Ltd is regulated by FCA, commercial mortgages and most buy-to-let and offshore mortgages are not regulated by the FCA.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

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