Mortgage With No Payslips

Getting a mortgage with no payslips but a job offer is a complicated process in the UK. Working as a specialist mortgage broker for people who are working full-time jobs, we have come across many newly employed individuals who are interested in getting mortgages but they just started their jobs.

If you’re one of these people and you want to get a mortgage, it can be quite tricky because most banks don’t accept applications from new employees without payslips. However, there are some lenders that do allow this type of application.

It can be something of a Catch-22 situation – you are looking for a mortgage, the lender asks to see your payslips (as proof of income), you have a job offer, but no payslips yet, of course, so your mortgage application is rejected.

So, if you are a recent graduate, or otherwise about to embark on your chosen career, does that mean you are in for a long wait whilst you collect a mountain of payslips before you qualify for a mortgage and are able to own your own home? Some lenders might insist that you have been working for at least three years, for example.

But, don’t give up hope. Here at Ltd, we work with specialist lenders of mortgages where you have a job offer but haven’t yet started work.

Mortgage Success Stories: How I Got Approved with a Job Offer Letter

Damian Youell

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How We Work

1: We contact you and take down your details, income outgoings, name, address etc.

2: We will research the whole market and email you a detailed quote as well as a list of documents to proceed.

3: You upload the documents and information needed via our channel our online portal.

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I have a job offer but no payslips, why is it difficult to get a mortgage?

Any lender has one overriding concern – the borrower’s repayment of the funds advanced.

When assessing the risk of any borrower defaulting on those repayments, the lender naturally looks to the income earned and for proof of that income by way of the payslips received.

In the case of a mortgage, that borrowing is likely to be spread over many years. The Money Advice Service reports that the average repayment period – or mortgage term is 25 years. But the number of first-time buyers entering into 31 to 35-year mortgages has doubled in the past ten years.

Clearly, therefore, lenders consider not only current earnings, but the borrower’s ability to continue repaying the mortgage loan over very many years – so potential income throughout that period also needs to be taken into account.

Without the proof of income offered by payslips, borrowers are considered at higher risk than other applicants and may be rejected by the lender or charged a higher rate of interest – but the actual success of your application is likely to vary from one lender to another.

The affordability criteria used by mortgage lenders are subject to quarterly reporting of Mortgage Lenders & Administrators Returns(MLAR)  to the Bank of England’s Prudential Regulation Authority (PRU).

Graduate mortgages

Mortgages for graduates and others who have received a job offer but have not yet started receiving their payslips present further difficulties for mortgage lenders, who need to assess the following additional risks:

  • any probationary period in your new job is unsuccessful, so that – until your role has been confirmed as permanent – your contract may be terminated without notice;
  • if you have been studying for three years or more, you are also likely to have a large student debt which also needs to be paid off;
  • since the mortgage application may be the first time you have ever sought to borrow, you may have little in the way of any existing credit history; and
  • in the event of your prospective employer needs to make redundancies, those most recently appointed are most likely to be the first to lose their jobs.

What do I need to qualify for a no payslips job offer mortgage?

In the absence of the payslips typically required by any lender, therefore, borrowers about to embark on their first career – and with good prospects for continued employment in that field – may instead offer:

  • an open-ended employment contract from your prospective employer; or
  • a letter of appointment from an appointment confirming the basic income to be paid, together with confirmation that any probationary period is preliminary to a permanent position within the employer’s organisation.

A mortgage with an employment letter typically requires the applicant to start the new job within three months and lenders are also likely to ask for copies of the last three months of your bank statements, together with proof of the deposit you have to put down on the purchase of your new home.

How much deposit will I need for a no payslip job offer mortgage?

The size of the deposit required is likely to vary from lender to lender and is of course influenced by a host of other factors affecting your current and future financial prospects.

The very minimum is likely to be 10% of the purchase price of your new home, but the bigger your deposit, the less you need to borrow, the wider your choice of potential mortgage products, and the greater your chances of success in making the application.

Is there anything else that will help my application?

Although the size of the deposit is likely to be a critical factor, other measures that are going to be taken into account include:

  • your credit record – if you have one – needs to be as “clean” and as favourable as possible;
  • if you are applying for a joint mortgage, your partner’s income may also be taken into account; and
  • if you already have a bank account with a bank or building society that offers no payslips job offer mortgages, this may also help in supporting your application.

Guarantor mortgages

There remain a number of factors which may still make your application for a mortgage with an employment letter unsuccessful – because of your personal circumstances, the size of the deposit you have to offer, or the affordability of your proposed borrowing, for example.

In those circumstances, we may be able to help you secure a guarantor mortgage or a gifted deposit mortgage with the committed support of family members or relatives.

In the case of the former, the guarantor may assume full liability – where they become fully accountable in the event of your default on repayments – or limited liability, which limits their accountability to any shortfall, i.e. the difference between any amount the lender calculates that you the borrower can afford to repay and the actual repayment required (typically, this requires a commitment of up to 30% of the required repayments from the guarantor).

Next steps – No Payslips Job Offer Mortgages

If you have recently graduated, completed your vocational training or are otherwise about to start a career with prospects for the future, you are likely to have a letter from a prospective employer confirming your appointment but don’t yet have the payslips typically required in support of any mortgage application.

At Ltd, we may help you find those lenders with the expertise and experience of advancing job offers, no payslips mortgages to individuals in just your situation. Why not contact us today to see how we can help?

FAQs – Mortgages with no payslips

Can I get a mortgage with a job offer letter but no payslips?

Yes, you can get a mortgage with a job offer letter but no payslips but you may need to contact a specialist broker for your mortgage application process.

 Can I get a mortgage with no payslips and a bad credit score?

If you have a poor credit score, it may be challenging to get a mortgage. However, some lenders may accept a no-payslip mortgage even if you have a poor credit history. If you are interested, you can check your credit score here.

How much money do I need to put down when buying a house?

The amount you need to put down depends on what type of loan you want to take out and whether you are looking at a fixed rate or variable rate mortgage.

What happens if I don’t pay back my mortgage?

You will lose your home if you fail to keep up with your monthly payments. You could face legal action against you by the lender or other creditors who have loans secured against your property.

What is a no-payslips mortgage?

A no-payslip mortgage is one where there is no payslip provided as evidence of employment. This means that you must provide a letter from your employer confirming your employment instead. There are many other things that you need to consider while applying for a mortgage without the payslips, so it is better to contact a mortgage adviser before going to any mainstream lender.

Is a no-payslip type mortgage different to a guarantor mortgage?

A no-payslip type mortgage is similar to a guarantor mortgage in that the person providing the guarantee assumes responsibility for repaying the mortgage should you default on your payments. The main difference is that a guarantor mortgage is usually only available to people who already own property whereas a no-payslip type mortgage is more widely available. It is always better to contact a mortgage adviser who can connect you with a specialist lender.

How does a no-payslips mortgage work?

When you apply for a mortgage, you will normally be asked to provide proof of income such as payslips. However, if you cannot provide these, you can still apply for a mortgage. Your bank or building society will then ask you to provide a letter from your current employer confirming your employment. They will also require details of your salary and length of service. Once they have this information, they will decide whether to approve your application. It is worth noting that a credit check from a mortgage lender could affect your credit report so, better to contact an experienced adviser before going directly to a mortgage lender.

Why would someone choose a no-payslip type mortgage?

There are several reasons why someone might want to apply for a no-payslip property mortgage. For example, if you are self-employed, you may not have access to payslips. In addition, if you are moving abroad, you may not have been able to obtain payslips from your previous employer. Another reason is that you may have had a period of unemployment and therefore have no payslips. Finally, you may not have worked for a long time and therefore have no payslip history. If you do not have a payslip history, you may find it difficult to get a mortgage. No-payslip mortgages are often cheaper than standard mortgages because they are based on your salary rather than your net earnings.

About The Author

mortgage broker damian youell

See some of Damian’s client reviews below

Damian is an experienced mortgage broker, founder of Ltd and company director. With over a decade working as a mortgage broker he has a strong understanding of hard to place mortgage cases. With hundreds of 5 star client reviews. hundreds of repeat clients his work speaks for himself.

He started as a one man band with the philosophy of putting clients needs ahead of his own. This ethos of offering excellent customer service has helped the business grow over the years. He gets satisfaction on getting cases pushed through to offer stage where other mortgage broker and companies have failed.

Throughout his time as an adviser he has carved out a niche area of advice helping clients with their business protection requirements too. Having helped hundreds of client with Relevant Life Policies, Shareholder Protection Insurance, Keyperson Policies and other important protection requirements of large to small businesses.

At home he is a family man and likes to spend his time with his four children and wife Lisa. He enjoys going on holidays spending time with friends and going for walks.