About to start new job before mortgage app

AnnaAlexandra

Hello

My fiancee and I have just had an offer accepted on a house but are worried that we won't get a mortgage approval due to his imminent change of jobs. We are FTB with a 10% deposit and had an DIP from Halifax which just ran out before we made an offer so applied for another via HSBC which we also received. Joint salaries are £40K and the house is £184,950 so we are looking for a mortgage of £166, 455. Our AIPs were both for £180K. Credit ratings are decent for both of us, no defaults and info up to date etc. just not much credit history as we don't have any credit cards. We've no kids and no loans/car finance.

My partner has already handed his notice in at his current job (did it a few weeks ago) and starts his new role (same profession but different company, role is a step up with a small pay rise) on 8th May 2017. We went ahead and made an offer on a house knowing this as listened to a few friends who said it'd be fine but now after reading up I'm not so sure. Wondering if anyone has had success with this sort of situation before? Or whether we will likely need to pull out and wait until he has payslips.

We have an appointment with an independent broker on Wednesday who was recommended by a friend but I'm desperate to know if there is any hope so asking on here.

Thanks in advance for any advice.

glosoli

In the new job he is starting, is there a probationary period? If so, do you know how long? Is he able to produce a contract which confirms what his salary is going to be?

If there is no probationary period, it should be straight forward enough. If there is a probationary period, then it will narrow the pool of lenders, but your mortgage broker should know where to place the application successfully.

ViolaLass

glosoli wrote: »

If there is no probationary period, it should be straight forward enough. If there is a probationary period, then it will narrow the pool of lenders, but your mortgage broker should know where to place the application successfully.

Does length of the probationary period make a difference?

ACG

There are lenders who will work off a job offer and there are also lenders who may just need sight of one payslip. But your choice of lenders will be reduced quite significantly. It should not in itself prevent you from getting a Mortgage but it will affect the scoring of your application.

Viola - Probationary period again can be a deal breaker with some lenders, but not all.

AnnaAlexandra

Thanks for the replies.

Finding out if there is a probation period but I don't think so. Also not sure he will have a contract as its a small company with no-one doing HR but it's a permanent full time position and we can get a job offer letter written confirming salary and probation. Will try to get a contract too if they can do one.

AnnaAlexandra

I was reading up on Halifax requirements and thought it looked like they might be a possible lender for us?

Lilla_D

Although Halifax can accept people during probationary period if it's part of a permanent position (confirmed by a signed agreement), the underwriter at their discretion may also ask for the first payslip before issuing the mortgage offer.
In the meantime, collecting DIPs also means collecting credit searches and that by itself may lower your credit score with the final lender.

AnnaAlexandra

I won't do anything more now and hope that our broker can find a solution. Thanks for your advice.

BLOW_FLY

Just going through same thing with Halifax.

Wife was made redundant but we already had offer accepted and AIP in place. Halifax wouldn't take things further to the underwriters until full contract of employment and employment references and verification had been carried out which was all done last week.

BF

AnnaAlexandra

Thanks for that, sounds encouraging that they are still willing to proceed. Fingers crossed for you and us!

Thrugelmir

AnnaAlexandra wrote: »

Also not sure he will have a contract as its a small company with no-one doing HR but it's a permanent full time position and we can get a job offer letter written confirming salary and probation.

Personally I'd never hand in my resignation to leave for a new job. Without knowing precisely what my terms of employment were. The size of the company is no relevance. Many smaller companies outsource their HR function. So as to operate within the law.