Should I stay in my job longer to get a mortgage?

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David Beard from Lending Expert explains how your mortgage application could be affected by a career change - Credit: Getty Images/iStockphoto

Some mortgage lenders want to see that you have been in the same job for as long as possible, as this shows stability and confidence that you can meet the monthly payments. 

There is a strong argument that, if you are in the middle of applying for a mortgage, you should just stay with your current employer for a little bit longer, just until the mortgage is in place. But is this always the case?

We speak with David Beard – the founder of Lending Expert, a price comparison site that specialises in secured lending and mortgages – to find out more.

Will switching jobs affect my mortgage application?

“Switching jobs halfway through a mortgage application may not be ideal,” explains Mr Beard. “But today there are a number of mortgage lenders and alternative lenders like challenger banks who are willing to take a view.

“Other factors come into play here, such as how long you were at your previous job. If you were there for a long time and are moving onto bigger and better things, this may be positive for your mortgage application and the amount you can potentially borrow.

“Additionally, if you are going through a probationary period, many lenders will be open-minded with this kind of thing.”

Are certain jobs considered better for mortgages?

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“Yes, arguably there are certain jobs that could boost your chances of being approved for a mortgage,” says Mr Beard.

“Solid professions such as doctors, nurses, teachers, surveyors, accountants and lawyers tend to look very good on a mortgage application because they have a stable demand and income. Some of these jobs mean that you earn a good income once you have reached a certain level or qualification.

“In fact, if you are moving from one job to another, maybe because you were going through training or a placement, then moving jobs should see you getting a higher salary and there is a threshold so you will never earn less than this. This certainly looks good for a mortgage application.”

Can I get a mortgage if I am self-employed?

“Yes, of course – you can absolutely get a mortgage if you are self-employed. Usually, you just need to be profitable and show a minimum of two years’ accounts to be eligible for a mortgage,'' explains Mr Beard.

“Now, if you are applying for a mortgage and leave your job to become self-employed, this could be tricky. The mortgage lender might consider this to be risky and this could impact your chances of being approved. However, if you are going to be self-employed but working with a company and have a contract that confirms your arrangement and future earnings, this could be accepted.”

Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a loan or any other debt secured on it.

To discuss your mortgage, you can speak with Lending Expert today on 0161 820 8099 or get a quote here today