Will a new job affect my mortgage?

Getting a new job is exciting! You might wonder how this change affects your mortgage - either one you already have or one you want to get soon.

Let's look at what happens to your mortgage when you change jobs.

How lenders look at your job

Mortgage lenders want to make sure you can pay back your loan each month. They check three important things about your job:

1. How long you've worked there
2. How much money you make
3. If your income is steady

When you change jobs, these things change too!

If you already have a mortgage

Good news! If you already have a mortgage and then get a new job, your monthly payments stay the same. Your lender can't change your mortgage just because you changed jobs.

But there are some things to watch out for:

• If your new job pays less, you might find it harder to make your payments
• If you miss work between jobs, save some extra money to cover those mortgage payments
• Remember to update your bank details if your new salary goes to a different account

Can I get a mortgage if I just started a new job?

This is where a new job makes a bigger difference. Lenders like to see that you've been in the same job for at least 3-6 months before giving you a mortgage.

If you just started a new job, the lender might:

• Ask for a letter from your employer
• Want to see your job contract
• Check if you're past your probation period

If your new job gives you steady income, you may still qualify for a mortgage. Here's what helps:

• If your new job is in the same field as your old one
• If your new job pays the same or more money
• If you have a contract showing your income is guaranteed
• If you've finished your probation period (usually 3-6 months)

Some lenders might give you a mortgage right away if you have a job offer letter that shows your salary. Others might ask you to work at your new job for a few months first.

Remember, every lender has different rules. It's smart to talk to a mortgage advisor who can help find lenders who are open to people with new jobs.

Different types of job matter

Your type of job affects your mortgage too:

• Full-time jobs are best for mortgages. Lenders love steady payslips!
• Self-employed is trickier. Lenders usually want to see two years of your business accounts.
• Contract work depends on your history. Lenders check if you've been doing similar work for a while.
• Part-time employment can work if your income is high enough to cover the mortgage.

Tips for success

If you're considering changing jobs and worried about your mortgage:

• Save extra money for a larger deposit
• Wait until after your mortgage is approved before changing jobs if possible
• Talk to a mortgage advisor about your situation

The bottom line

A new job doesn't have to ruin your mortgage plans. With good timing and planning, you can change jobs and still get or keep your mortgage.

The most important thing is to show lenders you can afford your payments each month. A stable work history in the same field helps, even if you change employers.

Remember: Always be honest with your lender about your job situation. They're there to help you find the right mortgage for your circumstances.