Does changing your job after having a mortgage approved, affect your mortgage deal? Find out what could potentially happen if you change careers, and/or salary, during the mortgage process.
Do mortgage lenders check employment after giving an offer?
Although it is rare that lenders check your employment once the mortgage offer has been issued, they will always reserve the right to check your information is still correct.
There will be a clause in the offer conditions that says that the offer can be withdrawn should your circumstances change and you no longer meet the lenders criteria.
Is it bad to change jobs while buying a house?
This depends on the lender you are using and what the change of jobs is. In many cases, it will not be advisable to change jobs during the mortgage application process.
Some lenders will require you to have been in your current employment for a minimum period of time, for example 3 months, while other lenders are happy if you have only just started a new job, as long as it is confirmed as a permanent position.
Also, if the new job means that your income has changed, this can have an affect on your affordability, so may cause the mortgage to become unaffordable in the eyes of the lender.
Do I need to tell my mortgage lender if I change jobs?
You should always tell your mortgage lender about any changes in circumstances during the application process for your mortgage.
In many cases, this won’t have a negative affect, but failure to do so could leave you in breach of the terms of your mortgage offer.
Can I change jobs after my mortgage is approved?
Changing jobs after your mortgage is approved can have a negative effect on your application and it is always best to talk to your mortgage advisor first if you are thinking of doing this.
If your new job has a lower salary
This may mean that your mortgage application no longer meets the lender’s affordability criteria. Your mortgage advisor will be able to tell you this.
If your new job has a higher salary
This shouldn’t cause an issue with affordability, but some lenders require a minimum period in a job for their criteria.
This may mean that they would no longer approve the application.
If your new job has changed from full employment to self-employment
This will almost certainly mean that your application no longer meets the lenders criteria, as lenders will need to see a history of income from self-employment.
Most lenders require 2 years’ history of self-employment, although there are some who will allow just 1 years’ accounts to proceed.
If your new job has changed from self-employment to full employment
This is a better scenario than going from employed to self-employed, but may still cause an issue if the lender requires a minimum time in your job.
Many lenders are happy to accept a new job from day 1 of employment, but they may ask questions about the role, such as any experience you have already and why you have decided to change.
If your new job has a probation period
Many lenders are happy to accept a probationary period, but it is still important to check this with your mortgage advisor.
The lender may well want to know if the job is similar to your previous one and how much experience you have in that type of role.
If your new job is based on commission or bonuses
If a lender will include commission and bonuses in their affordability calculations, they will want to see some history of these being paid, such as 3 or 6 months or maybe even up to 2 years in some instances.
This could well mean that your application no longer meets the affordability calculations.