Will New Job Affect Mortgage Application?

rob01273

The company I work for is in the construction industry and looks close to going belly-up.

I was just about to succesfully to buy my first home when this was announced by my employer and now I'm going to have to pull out of the purchase

Now I'm urgently job hunting but my question is - will not being in a new job for long affect my eligibility for a mortgage? How long will I need to be in the new job before my employment status 'looks good'? Or assuming the pay is similar and it's a contract position, will it make no difference at all?

opinions4u

You have a handful of issues here, but there's no definitive answer.

- the shorter the time you've been with your employer, the lower your credit score will be. So it could trigger a different pass/fail decision.

- many lenders will ask for you to have been with the same employer for 6 months or longer.

- some lenders won't lend to you while you are in a "probationary" period.

This is one of those situations where using a whole of market mortgage adviser may be a good idea, as you can tap in to their knowledge of the market place to secure a mortgage.

Another thought though - wouldn't you feel happier being in the same job for 6 months or longer before applying for a mortgage? That way you will have a better feel for whether or not you want to rely on loving/hating that job that supports your mortgage payments.