A new job could be the start of something in everyone’s life and this is the time when some started thinking about/her next step in life. Sometimes this next step is to start their journey onto the property ladder and sometimes to invest for future gains. Getting a mortgage with your new job offer or employment contract is not difficult and could be possible if your mortgage application is done properly. In this guide, we will focus on getting a mortgage loan with the help of your new offer letter or employement contract. In our last article, we discussed about Mortgages during the Probation Period which you read on our website. With every job offer letter, there is mention of a probationary periodA period of time during which a borrower's employment is pro... which usually lasts for 3-6 months. Getting a mortgage during the probationary period is also a complicated process which also requires your job offer letter. Similar to other mortgages, lenders will do affordability calculations to find out whether you can afford mortgage payments or not. In most cases, a maximum loan of 4.49 times the loan to income could be approved by most mortgage lenders after satisfactory affordability calculations. If an increase after the probation period is mentioned in your job offer letter, then this will also increase your affordability calculations by the lenders.
Mortgage with Job Offer Letter
When an individual starts his/her new, it includes embarking on a new career, meeting new colleagues, change of work habits etc… With all these changes, it is also important to plan for your future by starting investing financially. It is also important to note that if you have previous plans on getting a mortgage with a new job, then you need to consider it before starting your new career. A new job could also impact your application. If you looking forward to getting a mortgage with a job offer in the UK, you could contact a known mortgage broker for a suitable deal before starting your application. An adviser will only ask for an employement contract and proof of income and get back to you with a suitable mortgage deal.
Points to remember before applying for a Mortgage with a Job offer Letter UK from any Company
If you are planning to apply for a loan with your new employer, here are a few things you should know:
1) You must provide an original copy of your current bank statement. This would include details like account number, name of the person who opened the account, date of opening the account, balance at the end of each month, the interest rate charged per year etc. The lender may require additional documents such as pay slips, etc. depending upon the type of loan they want to give you.
2) Your proof of income needs to be verified by your old employers. They might ask for copies of payslips, tax returns etc.
3) Lenders generally look into credit scores while approving loans. So make sure that your credit report has been updated recently.
4) Most banks prefer borrowers with a minimum of 5 years of experience. However, if you don’t have any prior experience but have a good academic record, you still stand a chance of getting a home loan. But it depends on how much equityThe difference between the value of the property and the amo... you have in your house.
5) Banks normally take around 2 weeks to approve a loan. Once the approval comes through, you will receive a call from one of the branch managers asking you to come over for further verification. After verifying everything, he will send you a formal agreement along with the final amount.
6) Make sure that you keep track of all the above points so that you don’t miss anything during the entire procedure.
7) Keep yourself informed regarding the latest developments related to the housing market. For example, if rates go up, you’ll definitely see higher monthly payments. Similarly, if prices fall down, you’d notice lower monthly repayment.
8) Always remember that once you’ve applied for a mortgage, you cannot withdraw without paying penalty charges.
Next Steps – Mortgage with a job offer in the UK
Starting a new job is always a challenging part for all of us. Mostly, the first 3-6 months are the temporary employement contract which makes the process of getting a loan more complicated. Moving to a new job can always be seen as risky to lenders which makes the mortgage process more challenging. Whether you are starting a new career or moving to self employement, you can contact our team of advisers at NeedingAdvice.co.uk Ltd. Feel free to give us a call or email us at the given address.
FAQs – Loan with a job offer letter in the UK
Can I get a loan with just a job offer?
Yes, you can get a loan with a job offer letter in the UK if a lender is convinced that you can pay the monthly payments and deposit amount.
What does an employment contract mean?
An employment contract means that you agree to work for a certain period of time. It also includes terms about salary, working hours, holidays, sick leave, maternity/paternity leave etc. If you sign this document before applying for a loan, then the lender will consider you as having a steady source of income.
Can I get a mortgage during my probation period?
Yes, you can get a loan during your probationary employement unless and until the lender is convinced that you can pay the monthly payments.
What happens when I apply for a loan before signing an employment contract?
If you signed an employment contract before applying for a loan then the lender may not accept your application because they think that you won’t be able to afford the repayments. You should try to negotiate with them by offering some extra money towards the cost of living. This way you could convince them that you can manage the monthly payments.
Can I switch jobs after my loan application?
Yes, you can also switch your current mortgage to a new job but you may need to contact for a financial adviser.
Can I get a mortgage with 3 months of probationary employment?
yes, it’s possible to get a mortgage with three-month employment. The only thing you have to do is to provide proof of earnings and income through payslips. In most cases, banks require 6 months’ worth of bank statementsA record of a borrower's financial transactions often requir... showing regular deposits into your account. They might ask you to show evidence of savings too.