FTB - Mortgage after changing employment

£££saver

I am a 24yr old FTB looking to buy hopefully within a year.

However, depending on how things go I may end up changing jobs so may have only worked for the new employer for say <6 months.

However I will have been with current employer for around 2 years (since graduation) and would plan it so there is no break and I would not be unemployed during the middle.

Would this affect ability to obtain a 90% LTV mortgage? Credit history good, no late payments, credit card balances always paid in full, but there is always a balance since all spending is via cashback card.

Also, does it matter whether some credit card or overdrafts have only recently been paid off? These relate to things like 0% O/D, and 0% credit cards where I am leaving the money in savings until the 0% is about to expire.

And finally, I am interested in knowing whether profession helps? I am a part-qualified accountant and by the time I apply for a mortgage I will only have a few months and certainly less than a yr before I become qualified. Would they consider future earnings potential if it is more than likely and within the next 1-2 years?

Thanks

herbiesjp

In relation to your new employment - If you are in a probation period when you apply, some lenders will want that period to have expired, however others will not (having no break in between is good).

Having no debts outstanding (even on 0%) means maximising your mortgage potential - any debt that is outstanding will be annualised and deducted from your gross salary before applying any income multiples/affordability calculations.

If you are borderline on affordability, some lenders will look at your profession, and assess your application more favourably - this would normally mean going via senior underwriters to get agreed.

They will not however agree the mortgage today, based on future income projections.

£££saver

Thanks.

I would definitely pay off any outstanding debts before applying (except for student loan), however just if it was recent, didnt want them to think "hmmm he's only just got himself out of debt". Also, are credit reports usually a bit behind so I would have to ensure my credit file is looking good at least a month or so in advance?

Do credit cards affect your oustanding debts if they are always cleared? I do all my spending via credit card so there is always a balance at any snapshot in time, however I always pay in full and on time so have never incurred interest.

I've done some calculations and should be fine for affordability in terms of repayments (will likely opt for fixed so no worry regarding rising rates). I would also make sure I fall within the stated multiples, however was wondering if they could still reject you anyway, and if so whether you can dispute it and argue about stable profession, career progression etc...

E.g. I've applied for a credit card before but got rejected despite, a clean record of paying in full on time, being over the minimum salary, and no adverse credit history (I've checked reports by both Experian and Equifax), and basically all the other usual recommend stuff like electoral roll. This then happened again a few months later and I got quite annoyed and wrote a letter to complain and dispute the decision, after which they apologised and gave me the card.

So basically, dont want the same thing happening where I seemingly meet all the requirements, have a good credit record, and still get turned down. If this happens can you dispute it and get someone to reconsider as opposed to a machine?

£££saver

Also, is there any way you can talk to a mortgage advisor and see "if you would be accepted" without leaving a full search on your credit file? E.g. when you get quotes via a comparison site for car insurance, they do a different type of search which doesn't affect you file?

It's just that if you talk to several banks, it probably doesn't look too good having so many searches.

herbiesjp

I would definitely pay off any outstanding debts before applying (except for student loan), however just if it was recent, didnt want them to think "hmmm he's only just got himself out of debt". Also, are credit reports usually a bit behind so I would have to ensure my credit file is looking good at least a month or so in advance?

No, they don't look at it that way. Your credit file should be updated each month, even if there is a balance on the card, as long as you state it is being cleared, they will disregard the balance on that card.

Do credit cards affect your oustanding debts if they are always cleared? I do all my spending via credit card so there is always a balance at any snapshot in time, however I always pay in full and on time so have never incurred interest.

Again, not a problem if you state they are being cleared.

I've done some calculations and should be fine for affordability in terms of repayments (will likely opt for fixed so no worry regarding rising rates). I would also make sure I fall within the stated multiples, however was wondering if they could still reject you anyway, and if so whether you can dispute it and argue about stable profession, career progression etc...

Your calculations may be fine for you. However, you need to make sure you fit the calculations of the chosen lender. Not sure what you would dispute, as it is their money they are lending, and they are not obliged to do so - if you do not meet criteria then look elsewhere

E.g. I've applied for a credit card before but got rejected despite, a clean record of paying in full on time, being over the minimum salary, and no adverse credit history (I've checked reports by both Experian and Equifax), and basically all the other usual recommend stuff like electoral roll. This then happened again a few months later and I got quite annoyed and wrote a letter to complain and dispute the decision, after which they apologised and gave me the card.

Mortgages don't work the same way - unless there is an error in the information they are looking at, you would not normally overturn a decline.

So basically, dont want the same thing happening where I seemingly meet all the requirements, have a good credit record, and still get turned down. If this happens can you dispute it and get someone to reconsider as opposed to a machine?

You can with some lenders, but not with others. Even then, it may be worthwhile putting your energies towards looking for a different lender.

I'm assuming you would be going direct, as a good broker would look to apply to only to lenders whose criteria you fit.

herbiesjp

£££saver wrote: »

Also, is there any way you can talk to a mortgage advisor and see "if you would be accepted" without leaving a full search on your credit file? E.g. when you get quotes via a comparison site for car insurance, they do a different type of search which doesn't affect you file?

It's just that if you talk to several banks, it probably doesn't look too good having so many searches.

Yes - you can get an agreement in principle.

However even if you are accepted on these, they do not guarantee a mortgage, as the application would still need to be fully underwritten.

Some lenders leave soft footprints i.e. does not affect your file, whilst others will leave a hard footprint - one or two will be fine, any more than that can start to cause problems.