You may have heard horror stories from people who’ve been rejected for a mortgage due to their employment circumstances. There are a multitude of reasons lenders might refuse to give someone a mortgage, from unpredictable income patterns to a short term contract.
Sometimes, prospective home buyers are turned down because they’ve only recently started a new job. This is often because the lender is concerned that if the new job doesn’t work out and the mortgage applicant is made redundant or fails to pass their probationary period, they may struggle to repay their home loan.
Thankfully, not all lenders will reject you on this basis. There are mortgage providers out there who will take a close look at your entire financial situation before making a decision. Here are just a few ways to increase your chances of having your application approved if you only recently started your job.
Ensure your credit rating is strong
Your credit rating will play an important role when applying for a mortgage, whether you’ve just started a new job or you’ve been in the same position for years.
Lenders will use it to assess how responsible you’ve been with debt in the past and predict how likely you are to manage mortgage repayments. If your credit rating shows you have a poor track record financially, you may struggle to access a mortgage.
If you’ve recently started a new job, your credit rating will probably come under even more intense scrutiny than it would in normal circumstances.
Save as large a deposit as you can
The larger your deposit, the easier you’re likely to find it to secure a mortgage after just starting a new job. By having a healthy deposit, not only can you demonstrate an ability to save, lenders will feel more confident giving you the loan you need because a percentage of the property’s value will already be invested and you won’t need to borrow as much.
Compare mortgages from different lenders
If you have reason to believe you may struggle to get a mortgage, going directly to a lender and asking for a loan can be a risk. If they reject your application, this could create an imprint on your credit file.
To reduce the risk of further damaging your eligibility to get a loan, it’s wise to seek the support of a mortgage broker. They’ll compare hundreds of mortgage deals on your behalf and will point you in the direction of the lenders most likely to approve your application.
To find out how the team at TaylorMade can help you get a mortgage, whether you’ve just started a new job or you’re on a temporary contract, please get in touch with our team.
