Starting a New Job? How First-Time Buyers in Plymouth Can Get Mortgage Ready
Starting a New Job? How First-Time Buyers in Plymouth Can Get Mortgage Ready
Stuart Ash Mortgage Services | First-Time Buyer Mortgages in Plymouth, Kingsbridge & South East Cornwall.
Introduction
Starting a new job is an exciting time for many people. Whether you’re beginning a graduate role, taking up a new professional position, or simply moving into a better-paid job, starting a new employment contract can also create an important question:
Can I get a mortgage if I’ve only just started my new job?
For first-time buyers in Plymouth, Kingsbridge, Tavistock and South East Cornwall, the answer maybe yes.
At Stuart Ash Mortgage Services, we regularly speak to people who assume they need to be in their new role for months before they can apply for a mortgage. In reality, mortgage lenders can have different approaches to new employment contracts, future start dates, probationary periods and changing income.
Meet Sarah and James: First-Time Buyers in Plymouth
Sarah and James are a fictional couple based in Plymouth.
Sarah has recently secured a new permanent position starting in September, while James has been in his current employment for several years.
They’ve been renting and have managed to build a deposit, but they weren’t sure whether Sarah’s new employment contract would prevent them from getting a mortgage.
Their initial thought was: “We’ll probably have to wait until Sarah has been in the job for 3-6 months.”
That isn’t necessarily the case.
One of the first things a mortgage adviser can look at is the type of employment contract, the start date, salary and the lender’s individual criteria.
Can a first-time buyer get a mortgage with a new employment contract?
Potentially, yes.
Lenders have different criteria and some may consider applicants who have a future employment start date or have only recently started a new job, although the exact requirements vary.
A lender may want to see evidence such as:
- A signed employment contract
- Your salary
- Your employment start date
- Details of any probationary period
- Your previous employment history
- Recent payslips, where available
- Bank statements
- Evidence of your deposit
- Details of any other income or financial commitments
The important point is that not every mortgage lender assesses new employment in the same way.
That’s where speaking to a mortgage adviser before making an application can be valuable.
Sarah’s new September contract
Sarah’s new role pays £32,000 a year.
Her contract is permanent and starts in September.
James earns £30,000 and has been with his employer for several years.
Together, their basic annual income is £62,000.
They have a £25,000 deposit and are looking at properties around Plymouth.
Rather than assuming that Sarah’s new job automatically rules them out, we would look at the circumstances and consider which lenders’ criteria may be appropriate.
Getting a mortgage isn’t simply about having a payslip showing your income. Lenders assess affordability and eligibility using their own criteria.
What if you’re still in your probationary period?
Starting a new job often means entering a probationary period.
That doesn’t automatically mean you cannot obtain a mortgage.
Different lenders can take different approaches to probationary employment.
Some may be comfortable with a permanent contract even when the applicant is still within their probationary period, while others may apply different requirements.
This is why submitting applications to multiple lenders without understanding their criteria first can potentially create unnecessary problems.
A mortgage advisor can help identify lenders whose criteria may fit your circumstances before an application is submitted.
What if you’re starting your new job in September?
If your new employment begins in September, you may be wondering whether you should wait until you’ve received your first payslip.
There isn’t a universal answer.
Some lenders may consider a signed contract and confirmed future employment start date, subject to their criteria and evidence requirements.
Others may want to see evidence that you have started employment and received income.
The right approach depends on the individual lender.
That’s why first-time buyers should consider speaking to a mortgage adviser early rather than automatically waiting.
First-time buyer mortgages:
The South West offers a wide range of opportunities for people buying their first home, from city-centre apartments in Plymouth, modern developments in Saltash and Tavistock or traditional family homes in Kingsbridge or Ivybridge.
For first-time buyers, understanding the local market is only one part of the process.
You also need to establish:
- How much you could potentially borrow
- How much deposit you need
- What monthly payments could look like
- Which lenders may consider your employment circumstances
- Whether there are government schemes or incentives that may apply
- What additional costs you need to budget for
A mortgage adviser can help you understand the mortgage side of the process before you start making offers on properties.
First-time buyer mortgages in Kingsbridge
For buyers looking around Kingsbridge and the South Hams, property prices and affordability can create different challenges compared with other areas of Devon.
If you’re starting a new job in September and hoping to buy in Kingsbridge, it can be particularly useful to establish your borrowing position early.
Knowing your potential mortgage budget can help you focus your property search realistically.
It can also help you understand whether your deposit and income are likely to meet the requirements of potential lenders.
First-time buyer mortgages in Tavistock
Tavistock is another popular location for buyers looking to purchase their first home in West Devon.
Whether you’re looking for a traditional property, a modern home or something closer to the surrounding countryside, getting your finances organised before viewing properties can make the process much easier.
If your employment is changing at the same time, getting mortgage advice early can be particularly helpful.
What should first-time buyers do before their new job starts?
If you’re starting a new contract in September and hoping to buy your first home, don’t wait until the last minute.
- Check your credit history
Review your credit commitments and make sure the information held about you is accurate. - Keep your deposit accessible
Make sure you can demonstrate where your deposit has come from and keep supporting documentation where appropriate. - Avoid unnecessary new borrowing
Taking out new finance or increasing existing borrowing shortly before a mortgage application can affect affordability. - Keep your bank statements organised
Lenders may request bank statements and other financial information. - Keep your employment contract
Your signed contract could be particularly relevant if you haven’t yet received your first payslip. - Speak to a mortgage adviser early
Find out how your new employment could be viewed by potential lenders before making a full mortgage application.
Don’t forget the costs beyond your deposit
First-time buyers sometimes focus entirely on saving their deposit.
But buying a home involves other costs too.
Depending on your circumstances, you may need to budget for:
- Mortgage fees
- Valuation costs
- Survey costs
- Solicitor or conveyancing fees
- Removal costs
- Buildings insurance
- Potential Stamp Duty
- Initial repairs or furnishings
Planning for these costs can help prevent your entire savings pot from disappearing on the day you complete.
What if your income includes overtime, bonus or commission?
If you’re starting a new role, you may also have questions about variable income.
For example, your new employment contract may include basic salary, overtime, bonus, commission or shift allowances.
Lenders can treat different types of income differently.
Some may take certain variable income into account, while others may require a track record before considering it.
This is another reason why a detailed assessment of your circumstances is more useful than relying on a generic mortgage calculator.
The key lesson for first-time buyers
If you’re starting a new job and want to buy your first home, don’t automatically assume you need to wait before speaking to a mortgage advisor.
Your employment contract, salary, employment history, deposit and wider financial circumstances could all be relevant.
Different mortgage lenders have different criteria, so the lender most suitable for one first-time buyer may not be suitable for another.
Speak to Stuart Ash Mortgage Services
If you’re a first-time buyer in Plymouth, Kingsbridge, Tavistock or South East Cornwall area such as Saltash, Looe & Liskeard, and you’re starting a new employment contract, we can help you understand your mortgage options.
We can look at your circumstances, discuss affordability and help you understand what information may be needed for a mortgage application.
Frequently Asked Questions
Can I get a mortgage if I’ve just started a new job?
Potentially. Lenders have different criteria, and some may consider applicants who have recently started or are about to start a new permanent role.
Can I get a mortgage while on probation?
Potentially. Being in a probationary period does not automatically prevent you from obtaining a mortgage, but lender criteria vary.
Do I need to wait for my first payslip?
Not necessarily. Some lenders may consider a signed employment contract and confirmed start date, subject to their criteria and the evidence they require.
Important Information
This case study is fictional and is intended for illustrative purposes only. It does not represent a guarantee that a particular applicant will qualify for a mortgage or that a particular lender will accept a new employment contract.
Final Thoughts: Make Your First Move the Right One by Planning Ahead
If you’re a first-time buyer in Plymouth or across Devon & Cornwall, contact me using the link below:
Contact – Stuart Ash – Mortgage Services
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