Getting a Mortgage in a Probation Period

Life tends to happen on its own terms, so we don’t always have the luxury of following idealistic plans for homeownership. If you’ve just started a new job and are still in your probation period, it’s not the ideal time to buy. However, it’s not out of the question.

If you’re wondering how to get a mortgage while in the trial period of a new job, read on to find out the potential requirements, and how to increase your chances.

Can you get a mortgage in a probation period at work?

Getting a mortgage while on probation can be a bit more challenging than it is for someone who has definite ongoing employment, however, it is possible. Not all lenders will support applications where this is the case, however, so it’s important to shop around to find the most suitable lenders for your needs.

Probation periods usually last 3-6 months into a new job, although for incredibly specialist roles, they may be longer. Because employers can terminate your contract more easily during this window, lenders are likely to see your income as less secure - especially if it’s your sole income. You’ll also likely need a minimum of 3 months’ worth of payslips in support of your mortgage, which you may not have early in your probation period.

To balance this risk, some lenders will ask you to apply once your trial period is complete. Others will be more flexible but they will likely balance this with stricter terms. They may require more supporting evidence from you, a larger deposit, or potentially a guarantor.

Lending criteria for applicants on probation

Lending criteria varies from one lender to the next, but there are generally stricter rules for those with income that is less stable. However, this depends on your circumstances, and many lenders are more flexible with some types of employment than others:

• Employment type: This can be a key factor for those on probation, as lenders often consider public sector jobs like nursing, teaching, or policing to be more stable - even during a probation period. This also typically applies to professionals, such as Doctors, Solicitors, and Vets, due to their defined career path

• Length of probation period: Lenders generally prefer shorter probation periods, as they lead to a stable income more quickly - in many cases, before your purchase completes

• Work experience: Starting a brand new career can be seen as more risky than continuing in something you have a lot of experience in. If you’re simply switching to a new job in the same industry, your probation period can be seen as less of a risk

• Credit history: A good credit score will always be helpful when getting a mortgage, but becomes more important if you’re already seen as a higher-risk borrower. If you have poor credit on top of being a probation period, there are likely to be fewer lenders available to you

• Deposit: Offering as large of a deposit as possible when getting a mortgage will typically increase the lenders and deals available to you, no matter what your circumstances. However, it could be particularly helpful during your probation period, as it may balance some of the perceived risks of having a less stable income

How to get a mortgage in a probation period

You’ll have the best possible chance of getting a mortgage during your probation period if you find the lender with the criteria you’re best able to meet. This can be easier with the help of an experienced mortgage broker, like ourselves.

It’s often specialist lenders, rather than typical high street banks, who are more flexible with their terms regarding probation periods. Sometimes these lenders won’t deal directly with the public, so having a broker search their terms for you can be very helpful.

There are also a few things you can do individually to try to balance your application and improve your chances of being accepted during a trial period:

1. Offer a larger deposit

2. Submit proof of previous work experience in the same industry or role in support of your application

3. Look at home ownership schemes that may be easier to afford, such as the shared ownership scheme, or rent-to-buy

4. Consider a guarantor mortgage, which is usually supported by a family member, such as a parent or grandparent

You can get started by comparing the latest mortgage rates below for free, or choosing the option to begin a free, no-obligation chat with one of our brokers:

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Will it make a difference if you’re a first-time buyer?

Being a first-time buyer won’t necessarily make it any more difficult to get a mortgage during a work probation period. Those mortgage lenders that won’t consider applicants on probation will usually decline applications whether you’re a first-time buyer, home mover, or remortgage customer.

Keep in mind, however, that as a first-time buyer, some lenders might expect you to put down a larger deposit. This could push affordability out of reach if the lender lowers the LTV (loan-to-value) of your lending while you’re in a work trial period.

Available mortgage lenders

Not all lenders consider a probation period to be a significant risk factor, especially if you’re in a public sector role, or have plenty of experience in your field. However, some are unlikely to consider your application at all.

Some lenders will be happy to begin the mortgage application process during a shorter probation period, but won’t allow it to complete until you’re signed off as a permanent employee. It’s also likely that lenders won’t consider supplementary income, such as bonuses or overtime, during a probation period. This means that if they do accept your application it will be based only on your flat-rate salary. However, this is not the case for all lenders, so it’s important to seek out those with terms that most closely match your needs.

Here are a handful of lenders that may be happy to accept a mortgage application while you are in a work probation period:

• Nationwide - Will consider applications, but will only consider basic income and may need to see bank statements as well as payslips

• Halifax - Will consider applicants during a probation period only if this the beginning of a permanent employment contract

• HSBC - May consider applicants who can provide a permanent contract of employment

• TSB - Has a fairly relaxed policy when it comes to probation periods. You will need to provide evidence of the new role, but they may even look at future salary increases if they are set in the contract. This can often apply to Doctors and Teachers, who often begin on a training salary

• Teachers Building Society - As lenders aimed exclusively at those in the education sector, they are willing to support new teachers on probation, assuming they can provide evidence of passing their PGCE

This is just a handful of the lenders actually available, so to find the most suitable for you, reach out to our friendly team, who will search the whole market of available lenders for you.

Why choose Teito for your mortgage needs?

Applying for a mortgage during a probation period can be daunting, but it’s perfectly possible with the right support and advice. At Teito, we can help you to find the most suitable lender and deal for you, whether you’re just starting a new job, or nearing the end of your career.

As whole of market brokers, we can search hundreds of lenders to find the most suitable for your circumstances. We’re here to make the process easier for you, even if you’re still in your probation period.

Reach out today for your totally free-of-charge initial chat with us. You’ll see why our customers have rated us 5 stars on Google and Trust Pilot.