Head of Content
Mortgage Advisor & Director
Can you get a mortgage during your probationary period?
Starting a new job brings a range of emotions and can be incredibly exciting, but it can also bring some financial challenges. If you're looking to buy a house and are in your probationary period, it can be more difficult to get approved for a mortgage. Is it possible? Yes! With enough preparation and determination, there's no reason why you can't get a mortgage in your probationary period.
Your mortgage application will be reviewed more closely than if you were in long-term employment because lenders view the transition into the new role with uncertainty. This is because while on your probationary period, you may not receive much notice before dismissal or termination from an employer which could impact future income and mortgages repayments.
The best thing to do is speak with an experienced mortgage broker about the steps that are necessary for getting approved - they'll know what requirements need to be met, such as how much of a deposit you'll need or any other fees associated with the process. If this is the case for you, don't worry! We've compiled some tips that should help make getting a mortgage easier when you're still in your probationary period.
What is a probation period?
A probationary period will usually be put in place at the start of new employment, and in the UK typically lasts anywhere between 1-6 months.
It is a trial period that allows the employer to review your performance and suitability for the role. At the end of the probation period, you typically go through a review process and your employer will decide whether the role is a good fit between you and the company.
Do you have to wait to apply for a mortgage until after your probationary period is over?
No, it's not necessary for people on a probationary period to wait until their employment has been long-term before starting the process of applying for a mortgage.
In fact, your new role may be beneficial when it comes to your mortgage application, for example, a larger salary can boost your affordability assessment. If your overall career trajectory shows progression over time with a stable income, you are in a much better position than if you have a sporadic work history. If this is you, just speak with an experienced broker as soon as possible so they know what requirements need to be met - That way getting approved becomes less stressful and there won't be any surprises along the way!
How do I find out if my credit score affects my chances of securing a mortgage during probation?
There's no doubt that your credit score will have an impact on your mortgage application, however, credit is just one factor in determining eligibility for a mortgage - so try not to worry too much about it!
Mortgage providers are looking for assurances that you'll can afford monthly repayments on any debts such as credit cards or loans because all these factors affect how much money they're willing to lend. Lenders are concerned with the age and severity of the credit issue, and even if your credit score leaves something to be desired, there are steps you can take to remedy this and enhance your chances of mortgage approval.
Tip 1 - You can improve your credit score by becoming more of a responsible user of credit and make repayments on time and ideally, above the minimum payment required.
Tip 2 - If you're looking to repair your credit, try paying down any large debts you may have. This should be done before you apply for a mortgage in order to avoid the potential red flag it may set off when lenders assess your application.
Tip 3 - Utilise any free credit report services that are available and make sure you check with the major agencies to see if there are inaccuracies that need to be corrected.
Does the length of probation affect your mortgage application?
Every lender is different, but it's possible that a lender will view a 3 month probation period differently from a 6 month probation period.
This is because, from their perspective, the risk of you losing your job and the associated income extends for a longer period. Lenders may be interested in your previous employment history, and if you can demonstrate longer periods of job security with a regular, stable income, this should help to relieve any concerns they may have about your earnings.
Learn more and apply now
Buying a home is one of the most important decisions you'll make in your life. And when you're looking for a mortgage, it's also one of the most complicated!
That's why we've created Teito - to help people like you find the best possible deal on their mortgage, even if they are starting a new job. We work with hundreds of lenders and can recommend the most likely to accept your application while on your probationary period. Getting started is easy! All you need to do compare deals, and you can manage your entire application online.
You deserve an easier way to get approved for a mortgage. With Teito, it’s never been this easy or affordable before, start comparing deals now and you could have a mortgage in principle in minutes.
Choosing an Adviser
Selecting a qualified and experienced mortgage adviser is of great importance. To choose a suitable adviser, evaluate their qualifications, experience, and reputation, and ensure they are regulated by the Financial Conduct Authority (FCA).
Read reviews from previous clients and make sure they provide a clear explanation of the products and services they offer, as well as the fees and charges associated with them.
