Switching to higher paid job and mortgage

HenryHippo

Flat hunting at the moment and got a £220k budget as a first time buyer.

I have been offered and accepted a job that pays £6k more than my current one. However I won't start the new job for 3 months (long notice period)

In theory this would increase the maximum that the bank would lend me by £25-30k

This is great news for me, as the market round here gets a lot better at the £230/240k mark

Question: Would the bank lend me a mortgage based on my new job before I have actually started it?

Question: How long into the new job would I have to be for the bank to make me a mortgage based on the new salary?

libf

It will depend on the lender. You need to check their policy on new jobs (and probation periods if you have one) before applying. You may need additional letters/proof from your new employer to satisfy the lender.

As an example, Nationwide: http://www.nationwide-intermediary.co.uk/lendingcriteria/general/employment

Going through a broker instead of direct would probably be easier.

(3 months is a short notice period to me! Very much depends on your industry.)

Dhrucku

Usually some sort of documentation (e.g. a change of terms of employment letter, detailing role, grade, salary etc) should suffice.

lika_86

You might struggle. I'm going through the mortgage application process and had a recent payrise which was effective at the start of this month, although I won't have a payslip to confirm it until the end of this month. Despite the fact that my employers (of the past four years) have provided me with a letter confirming the new salary and that I am already earning it the mortgage lender still wants more direct from my employer in terms of confirmation from them (grrr). All very frustrating and I imagine more difficult if you haven't started.

I'd wait the three months to be honest.

Noctu

Speaking as someone with a mortgage from Nationwide, I was in a similar position in September last year in that I had just secured a job, after a long period of studying. I approached nationwide explaining that I hadn't started it yet and they said it was fine and just wanted a copy of my employment contract.
I started the job a few weeks later anyway and didn't move until the December but in principle, it was fine. Worth going in for a chat I think.