Mortgage and New Job at same time

ellie9517

I am 22 (too young?) and have been approved for a 15 year mortgage on a property that I like. I am due to start a new job in August and would purchase the house in the next couple of months all going smoothly! Do people think this is "too much new at the same time"? A mortgage is a big commitment and if I don't like the job I fear that I will be tied to it to pay the mortgage. How easy is it to switch mortgage to a different property (obviously will be costs) if worst comes to worst? Just wondering different peoples thoughts. Thanks!

[Deleted User]

Is your mortgage lender still happy to lend given the new job?

ellie9517

The DIP I received didn't take the new job into account. But it is a much larger wage than I am currently on so I don't think it will be an issue, shall definitely check.

[Deleted User]

It has the potential to be a major issue. Raise it early.

ellie9517

Shall do thanks. They are aware that my current contract is finished at the end of July and that it hasn't been renewed by my current company. I made the DIP application as accurate as possible but shall let them know of this

Thrugelmir

Biggest risk is that the job doesn't work out. The grass isn't always greener on the other side. At your age a month or two isn't going to make a huge difference. Why a 15 year mortgage term? I would never advocate a 40 year year term. But 15 years is relatively short. Which would result in a sizable jump in monthly outgoings as and when interest rates rise.

Dandytf

Exactly Thrugelmuir- I lived the new job and flat pruchase a few months later 2009 -and since settled into 2nd job move 2011.

Though it could have went either way, at least my home move was and is excellent, workwise was more unsettlinng though.

Lilla_D

When you say your current contract is not renewed and you start a new job, do you mean that you work as a contractor on a daily rate for set periods of time? If so and you got your AIP based on your current contract rate, then it's not an issue if you start a new contract elsewhere.
However, if you're an employee, then a new job with a probationary period could be an issue dependent on the lender.

If you want to move property, then most lenders allow porting of the mortgage subject to T&Cs, but it does mean selling and buying and it may be too much when also looking for and/or settling into a new job because this one from Aug doesn't work out.

As per Thrugelmir's post, you may want to consider a bit longer term to avoid being at risk of not being able to pay your mortgage. Obviously a longer term doesn't just mean lower monthly payments, but also paying more interest, so you'll have to consider your options carefully.