If you’re about to start a new job or you’re switching from a salaried role to self-employment, you may be worried that your change of circumstances will negatively impact your chances of securing a mortgage.
But while some lenders can be reluctant to lend to you if you’re about to change roles – or you’ve just moved to a new company – and don’t have the required number of payslips from a current employer, there are still lenders out there who will, provided you meet their criteria.
Changes in our working lives are not always predictable or planned and it’s an unfortunate fact of modern life that restructuring can suddenly leave people facing redundancy and a loss of secure income at a time when they need it most.
As with all things when it comes to mortgages, the options that are available to you will differ from lender to lender depending on your specific circumstances.
Here we explore the two most common scenarios.
A new mortgage if you’ve just started a new job
This can be tricky, even if you’ve moved from a job where you had a regular income over a long period of time. Because employers often build probationary periods into their employment contracts, lenders can be nervous about lending if you’ve been in post for only a few weeks or months.
However, there are specialist lenders who will accept mortgage applications from new starters, assuming you tick all the other affordability boxes that make up their lending criteria.
We would recommend people always use a professional mortgage broker to secure the finances need to make a property purchase because of the expertise and experience a specialist adviser can bring to the process, but if you find yourself in this situation, it makes particular sense to apply via a broker.
A new Mortgage if I was employed, but have now started working for myself
If you’ve been self-employed for a while and you have two or three years of accounts and tax returns to show, then you probably won’t have too much trouble finding a lender who will accept your application.
Things do become a little more challenging if you’ve literally just started a business or set up as a sole trader, but being in that situation doesn’t mean your application will necessarily be turned down – as long as you and your mortgage broker have prepared properly.
There are lenders in the market who specialise in dealing with self-employed applicants, so that’s obviously one route that may be open to you.
Alternatively, putting together a detailed lending proposal that shows you’re a qualified, specialist or skilled professional in the sector in which you operate, have a solid previous employment history where you commanded a decent level of income and shows evidence of secured future business could be another option.
Admittedly, many lenders will look to see at least a year of self-employed trading history, but it’s not unheard of for someone running their own business or trade to be accepted within 6 months of setting up, and your broker will be able to advise you on the strategy that he or she thinks will work best for you.
At Oportfolio, we work with a wide range of lenders, which means we can help you if your situation doesn’t meet the criteria of regular mortgage lenders and you need some expert help to secure your property.
We’ve helped many people who wrongly thought they wouldn’t be able to get a mortgage, so if you’re worried about your chances of success, why not get in touch and see if we can help?
Oportfolio Limited is an appointed representative of Primis Mortgage Network, a trading name of First Complete Limited which is authorised and regulated by the Financial Conduct Authority
Your property may be repossessed if you do not keep up repayments on your mortgage.
Oportfolio Ltd fees are payable on application. We charge a broker fee for property purchases of £495 and a remortgage/further advance fee of £395. Our product transfer fee is £295.