Is new job and moving house always a mortgage problem or just my lender?

captainofthebounty

This is my first post here so I hope I don't inadvertently break any rules. I'm a bit shocked at the response of my current mortgage lender and a friend has suggested I ask around this forum for advice.

Basically, my employment situation means I need to move across the country and so I want to buy a new house. This turns out to be a problem.

I've had a mortgage for 4 years now with NatWest. I'm not having any repayment problems with it whatsoever, nor have I ever been behind at any time.

About a year ago I was made redundant. It didn't affect my mortgage payments because, luckily, I have plenty of savings. For the rest of 2012 I worked part-time, occasionally dipping into my savings to make up the shortfall. Then in January I found a fixed-term full-time contract that lasts until the end of July. So at least I was working full-time.

There don't seem to be any permanent jobs for me where I'm currently living, so I decided to look further afield. I was successful. I have been offered a permanent job 150 miles away (further north) on £7k a year more than I have ever earned before; a slightly more senior post but in the same industry. Basically, I'm going to be a university lecturer (before, I was a more junior researcher). So I want to sell my house and buy another one somewhere else.

So I did what I thought was obvious: I went to my current mortgage lender to arrange a new mortgage. And it has been disastrous.

There is no problem with the salary amount, which would qualify me for probably more than I would need. But, basically, they don't want to give me a new mortgage until I have been in the new job for 12 months. They don't seem comfortable with the fact that the job has a probation period of 3 years (which is quite normal for university lecturers in academia, I have asked several friends with similar jobs). They also don't like the fact that my *current* job is a fixed-term contract (that bit I understand, but I was really applying for a mortgage on the basis of my *new* job).

In short: I have 40k in savings (I was going to look at offset options), an existing mortgage that I have repaid with total diligence for 4 years, and a permanent job on a good salary starting in just under 10 weeks. University lecturers aren't made redundant very often, either (unlike the more junior researchers, which is what I used to be, who are treated like cannon fodder).

So my question is this: Have I encountered some quirk of NatWest, or is it likely that no-one reputable will give me a mortgage?

It would be a disaster if I now have to go and rent, because I'm not sure how long my new employer keeps their (quite generous) relocation package open for. Almost certainly less than 12 months. So this could cost me thousands...

Thanks in advance.

kingstreet

It's NatWest. Other lenders will consider those in probation, or who have not even started a job yet, as long as they have a written offer and confirmed start date.

captainofthebounty

kingstreet wrote: »

It's NatWest. Other lenders will consider those in probation, or who have not even started a job yet, as long as they have a written offer and confirmed start date.

Thanks kingstreet, that's reassuring.

Are there any particular lenders known to take an understanding view of such probation period issues?

mbailey

I was chatting to Natwest last week about my situation for a possible remortgage.

Was made redundant, unable to find work for 11 months, now been working again in a permanent role for 3 months. Although my current role is permanent, it has a 6 months probation period in the employment contract.

Natwest said they usually look for 6 months solid employment. Also they prefer if people are not in probation periods.

My LTV is very low at 37%, and I have some additional savings so was also looking at Offset mortgage. Also been a Natwest customer for >20 years, not that that seemed to make a difference.

The advisor said he had known cases like mine that have been approved in the past but others which hadn't. He said it was down to the decision of the underwriters.

As it is I have since found many other better products that I am considering for my remortgage, so won't be taking things further with Natwest.

michelle_omahoney

Hi, I've had the same happen and I'm with Barclays, they said I could port when it was ING and now that's all changed because I was out of work last year but am in a new role albeit a short one, but they now want everything under the sun, statements, et etc, I've never fallen short on my mortgage and have a 50% LTV...I'm sick to death of being let down by these companies who you think will help you when you've been with them a long time....

Thrugelmir

michelle_omahoney wrote: »

I'm sick to death of being let down by these companies who you think will help you when you've been with them a long time....

Why should you be singled out for special treatment. Many of the UK's current problems are down to a decade of lax lending by the banks.

Voyager2002

captainofthebounty wrote: »

Basically, my employment situation means I need to move across the country and so I want to buy a new house. This turns out to be a problem.

Congratulations on getting a lectureship: a very rare achievement!

I think the problem with NatWest is that you are talking about getting a new mortgage as if you were a new customer rather than 'porting' your existing deal to a new address. Obviously people do change jobs and move house, and most mortgage deals allow for this. Check the paperwork that came with your original mortgage.

Goldiegirl

Each time a person moves, they have to apply for a completely new mortgage, subject to the lenders current lending criteria.

If they are applying to their current lender they can 'port' their current interest rate - but it is only the interest rate they are taking with them, not the mortgage. The mortgage will be a completely new mortgage.

So the OP has to satisfy his lenders criteria for new mortgages, and it seems that Nat West doesn't like lending while the applicant is in a probationary period for their new job

The lender I worked for 4 years ago had the same requirement, and wouldn't offer a mortgage whilst the applicant was on their probationary period.

Maybe the OP needs to speak to a broker to find a lender that will take him on

lfc321

Congrats on the new job. I'm also a lecturer and I recently had no problems doing this with Nationwide - moved and mortgage began a few weeks before the new job started (although contract was signed etc etc).
I don't have a probationary period, though - not sure whether that makes a difference to Nationwide or not.