Will changing jobs stop you getting a mortgage?

Starting a new job could make getting accepted for a mortgage more difficult — even if you'll earn more. Here's why and what you can do about it.

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Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.

Why does it matter?

Getting a new job affects your chances of being accepted for a mortgage because most lenders only offer you one if you have been in your job for a while.

Some lenders may accept you if you've worked there for three months or less. But some mortgages are only available if you've been in your job for more than three years.

It depends on the lender's acceptance criteria - their rules on who they are happy to give a mortgage to - which includes your employment status, age, income and credit record.

How lenders work out if you can afford a mortgage

Why could they turn you down?

Because lenders think it is riskier to give you a mortgage after you start a new role. You could become unable to afford your mortgage payments if lose your job because of:

  • A probation period: Your company could terminate your contract without notice in this period (until your role becomes permanent).

  • Redundancy: If your employer needs to make cuts, the newest employees are usually the first to go.

If you earn more now

Although a new job can hurt your chances of getting a mortgage, a higher salary can lessen the impact because it increases what lenders think you can afford to borrow.

You need to prove your new salary, so ask your employer to confirm it in writing.

If you earn less now

Moving to a new job with lower pay means the amount you can afford towards mortgage payments will go down.

This means you can borrow less, so if you are still looking for a property you may need to drop the price you can pay.

If you have already started your application, let your lender know your new salary and make sure they can still offer you a mortgage.

If your income depends on bonuses or commission

If your new job pays a lower basic salary but includes bonus payments, commission or overtime, try to show lenders how much you could earn.

If you have been in a job a few months, your payslips can prove this. If not, written confirmation of guaranteed bonuses or what commission you can earn may help.

If you go self-employed

If you work for yourself, you could still get a mortgage, but you need to be able to prove your income.

Lenders usually need to see your statements and accounts for at least the past year, and sometimes three years or more.

This means you may not be able to buy a house immediately if you have just gone self-employed.

Should you delay moving jobs or buying a house?

You could wait until you've been in your new job a while before you start house hunting. Your job will look more secure, improving your chances of a mortgage.

Waiting until your probation is over and you've been in the role for more than six months is enough for many lenders.

If you need to buy a house sooner, decide if changing career can wait until after you move in.

Should you buy a house now or keep saving?

What if neither can wait?

There is still a chance you could get a mortgage, but you'll need to find a lender that's not put off by your career change.

Contact a mortgage broker here because they often have access to exclusive deals and know which lenders are mostly like to accept you.

You could also help your chances if you can put a large deposit towards the house.

What if you change jobs after you apply?

If you already have a mortgage

If you want to switch to a new mortgage soon, getting a new job can make it harder to get a new deal.

It may be easier to switch before you change jobs if you can do this without any fees.

If your new job has a lower salary, affording your monthly payments can be more difficult. Here is how to write a budget so you can cut your other costs.

If you're a first time buyer or looking to move house or remortgage, we can help you find the best mortgage deal to suit your needs.