Changing jobs mid mortgage application

greenchicken

Does anyone have experience of this?

I have been in my job for 7 months and am unhappy with it. I have applied for another, very similar job (but with more responsibility and slightly more pay) and have had a couple of interviews, so there is a good chance I'll get it.

We have also just put an offer on a house and are about to go through the mortgage application process. If I change jobs, is this likely to cause problems?

We have found a perfect house and would be really sad to let it fall through.

Are mortgage applications considered by real people - ie. would someone understand my circumstances, see I have always held down a job and this change at this time is a coincidence?

If not, is there a way for someone (like a parent) to act as a guarantor on a mortgage, in the same way as a rental agreement?

ilnf

Is there a possibility you'll still be in your current job until your mortgage application is complete? (Notice period?)

greenchicken

Yes possibly - but would the lender ask about any forthcoming changes that I know about?

Thrugelmir

greenchicken wrote: »

Yes possibly - but would the lender ask about any forthcoming changes that I know about?

Your duty to inform them. Failure to do so would cause issues. Possible that an employers reference may be requested.

greenchicken

Would a reference help get it passed through?

Thrugelmir

greenchicken wrote: »

Would a reference help get it passed through?

Which employer are you going to put on your application?

7 months isn't long before switching jobs. So doesn't suggest that your employment is established and secure. Something a lender will be looking for.

greenchicken

At the moment I don't have the new job, but just wondering what would theoretically happen really. I guess if I'm still in my existing job but know I'm leaving, I'd put that one down?

Goldiegirl

Some new jobs have a probationary period, before the permanent contract is confirmed.

Some lenders don't like approving applications during a probationary period, in case the job doesn't work out and the new employer doesn't keep the person on at the end of the period.

kingstreet

If you are using a credit scoring lender, like most on the High Street, changing jobs may significantly reduce your credit score to the point that your application goes from pass to fail.

With your current short employment history, if you have only a small deposit you are heading for the "high risk" pile, with lenders looking for reasons to decline, rather than the other way round...

In addition, lenders don't like probationary periods, so a move may mean your purchase has to be delayed until your position is confirmed. There are one or two who will accept an application where there's a new job, but you have to pass the credit score at the same time.

Whatever you do, you are required to report any change in your circumstances from the point of application, until completion has taken place. This may mean you have a mortgage offer withdrawn if the new job causes you to fail credit score further along in the homebuying process, after you've spent a few quid on fees.

greenchicken

Thanks kingstreet. We have a deposit of around a third of the property value, so quite high. We haven't yet done a formal credit check, but we did both check our own credit reports and both seemed to be in the 'excellent' range. Do you think this makes a difference? Do you know specifically which lenders are more likely to accept a recent job change?

kingstreet

It sounds like the employment situation isn't going to tip you over the pass/fail line if you only need a 66% advance. Ignore the "credit scores" CRAs give you, they are worthless.

Lenders score you on every piece of information on the application form, including filling in the telephone numbers and how long you've been with your bank. CRAs don't know this, nor do they know your employment history.

What you need to decide is;-

- are you applying for a mortgage? If you are - put off your change of employment until after completion

- are you changing jobs? If you are - you need to put off your mortgage application until after you've got a formal written offer then you need to find a lender which will accept this, and/or the probationary period.

What you really should not do, is apply for the mortgage then change jobs before completion. This is fraught with danger IMHO.

You'll need to research the correct lenders for the prevailing situation at the time. Brokers on here don't name names.