How Lenders View a Recent Job Change
When you apply to remortgage, lenders verify your income and employment status. If you have recently changed jobs, lenders will want to see that your new role is permanent and that you have passed any probationary period. Some lenders will decline applications from borrowers still within their probation period, while others are more flexible.
The main concern for lenders is income stability. A move from one permanent role to another at a similar or higher salary is generally viewed positively. A move that involves a significant pay cut, a switch from employed to self-employed status, or a move from permanent to temporary work raises more questions.
Probation Periods and Lender Policies
Probation periods are a common sticking point. Many employers set probation periods of three to six months, during which your employment can be terminated more easily. Lender policies on probation periods vary considerably:
- Some mainstream lenders will not accept applications from borrowers in their probation period
- Other mainstream lenders will consider you during probation if you can provide a contract and at least one payslip
- Building societies and smaller lenders may be more flexible, particularly if you are in a professional role or the same industry as your previous job
If your probation period is a barrier, you have two main options: wait until it ends before applying, or use a broker to find a lender that accepts applications during probation. A product transfer with your existing lender — which does not typically involve an employment check — is another route.
Documentation for a New Job
If you have changed jobs recently, be prepared to provide the following documentation:
- Your employment contract showing your job title, salary, start date, and any probation period
- Recent payslips — at least one from your new employer, though some lenders want three
- A P60 from your previous employer if you changed jobs within the current tax year
- Bank statements showing salary deposits from your new employer
If your new role includes guaranteed bonuses, commission, or overtime, you may need to have been in the role long enough to have received at least one payment before lenders will include this income. Most lenders require 12 months' evidence of variable income components.
Timing Your Remortgage Around a Job Change
If you know you are going to change jobs and your mortgage deal is also coming up for renewal, consider the order carefully. Applying for a remortgage while you are still in your current role — with an established income and no probation period — is usually simpler. Mortgage offers are typically valid for three to six months, so you may be able to secure a new deal before starting your new job.
If you have already changed jobs, waiting until you have at least three payslips from your new employer and have passed your probation period will open up the widest range of lenders. If your current deal is expiring before you have this track record, a product transfer can keep you off your lender's SVR while you build up evidence in your new role.
Career progression moves — promotions or lateral moves within the same industry at a higher salary — are viewed favourably and rarely cause problems, even if recent.
Important: Your home may be repossessed if you do not keep up repayments on your mortgage. There will be a fee for mortgage advice. The actual rate available will depend on your circumstances. Think carefully before securing other debts against your home.