Changing Jobs? The Impact on a Mortgage

Changing Jobs? The Impact on a Mortgage

Changing jobs can be an exciting step, whether you’re starting a new role, pursuing a promotion or taking the leap into self-employment. However, if you’re planning to apply for a mortgage or remortgage, it’s worth understanding how a change in employment could affect your options.

Many people assume they need to wait until they’ve been in a new job for several months before approaching a lender, but this isn’t always the case. While some lenders may prefer applicants to have passed their probation period, others are happy to consider borrowers who have recently started a new role, particularly if they’re staying within the same industry or their income is stable.

If you’re moving into self-employment, the process can be a little different. Lenders typically want to see evidence that your income is sustainable, which often means providing one or more years’ worth of accounts or tax returns. However, some lenders are willing to consider applications from newly self-employed borrowers, depending on their experience, profession and overall financial circumstances.

If you’re thinking about remortgaging, timing can also make a difference. Applying before changing jobs may offer more options in some cases, while waiting until you’re established in your new role may be beneficial in others. Every lender has its own criteria, so there’s no one-size-fits-all answer.

Whatever your employment situation, it’s a good idea to be prepared with the documents a lender is likely to request. These may include recent payslips, bank statements, your latest P60 and proof of any bonuses or commission if these form part of your income. If you’re self-employed, you may also need to provide tax calculations, tax year overviews and business accounts.

The good news is that changing jobs doesn’t automatically mean you can’t get a mortgage or remortgage. The key is understanding how different lenders assess applications and ensuring your circumstances are presented in the best possible light.

If you’ve recently changed jobs, are considering self-employment or are planning to remortgage, get in touch to discuss the options available to you.

At Teddy James Mortgage Solutions we are based in Eastbourne and take pride in offering friendly, honest, fee free mortgage advice.