Can You Still Get a Mortgage If You Decide to Change Jobs?

When considering buying a home, stability often takes center stage in a lender’s eyes. However, life doesn’t always unfold neatly. Job changes, whether for better opportunities, career shifts, or personal circumstances, are a reality for many. At Coreco, we often get asked whether a job change can hinder your ability to secure a mortgage in the UK. The answer isn’t a simple yes or no—it depends on the circumstances.

Here’s a comprehensive look at how changing jobs can impact your mortgage application and what you can do to keep the process on track.

1. Timing Matters

Mortgage lenders prefer applicants with a stable income history. If you change jobs close to applying for a mortgage, this could raise concerns. Lenders typically want to see at least three to six months of continuous employment in your current role to assess your income reliability. However, there are exceptions to this rule.

Tip: If possible, delay changing jobs until after securing your mortgage. If the change is unavoidable, discuss it with your mortgage adviser early.

2. The Nature of Your Employment

The type of job you’re moving into can influence how lenders view your situation:

• Similar Role, Better Pay: A job change to a similar role with an increase in income is usually seen positively, especially if it’s in the same industry. This shows upward career progression, which lenders generally value.
• Probationary Periods: Starting a new job often comes with a probation period, which can make lenders nervous. While it doesn’t automatically disqualify you, you might need to provide additional proof of job security.
• Self-Employment or Freelance Work: Transitioning to self-employment adds complexity. Lenders typically require two to three years of accounts to verify your income. Starting a business right before applying for a mortgage may not be ideal.

3. Demonstrating Affordability

Regardless of your employment status, affordability is the cornerstone of any mortgage application. Lenders will assess:

• Your income stability: If your new job is permanent and your salary is higher, this can offset the potential risks of a recent change.
• Your debt-to-income ratio: Ensure you maintain a healthy balance between income and outgoings, including credit commitments.
• Savings: A larger deposit or emergency fund can reassure lenders of your financial stability, even if your employment is new.

4. The Importance of Communication

Transparency is key. Inform your mortgage adviser about your job change as early as possible. At Coreco, we work closely with lenders to present your case in the best light, emphasizing your strengths, such as a higher salary or strong savings record.

5. Flexible Mortgage Options

Some lenders specialize in offering mortgages to people with non-standard employment situations, including those who’ve recently changed jobs. These lenders consider the bigger picture, including your earning potential and career history.

6. AIP as a Safety Net

If you anticipate a job change, consider securing a mortgage agreement in principle (AIP) first. An AIP provides an indication of what you could borrow and demonstrates to sellers that you’re serious. However, remember that any material changes in your circumstances (like job changes) must be disclosed to the lender.

Final Thoughts

Changing jobs doesn’t have to mean delaying your homeownership dreams. While it may add a layer of complexity to the mortgage process, careful planning and expert advice can ensure you navigate it successfully. At Coreco, our experienced mortgage advisers are here to guide you through every step, helping you present your application in the best possible light, regardless of your employment situation.