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Often, no minimum at all. Many lenders accept a new permanent job from your first day, provided you have a signed contract and the start date has passed or is within a few weeks of the application. Some want your first payslip in the new role. Some want three months in the job or a probation period completed. Continuous employment history, without long gaps, matters more to most lenders than how long you have been in this particular job.
Which lenders accept a new job from day one?
Enough of the panel that it is rarely the thing that stops a case. The typical requirement is a signed contract showing your salary and start date, the previous employer’s details, and no more than a short gap between the two roles. A few lenders will lend on a contract before you have started, which suits people relocating for work. Others want the first payslip, which means waiting until the end of your first month. The number of payslips each lender wants is on my how many payslips for a mortgage page.
Why does a job change delay so many applications?
In my experience, a job change is the single most common reason a straightforward payslip case is delayed. The pattern is the same each time: the applicant starts a new role, applies straight away, and the lender chosen wants a payslip that does not exist yet. The fix is either a different lender or a wait of a few weeks, and knowing which before the application goes in avoids a wasted credit search. The wider criteria are on the residential mortgage page. This article is part of my first time buyer mortgage hub.
Many lenders accept a new permanent job from day one with a signed contract, others want the first payslip or three months
A job change is the most common reason a payslip-based application is delayed, because the first payslip does not exist yet
A new job after the mortgage offer is a material change and the lender needs to be told before completion
What do lenders want to see for a new job?
The signed employment contract is the main document, and it needs to show your job title, basic salary, start date and whether there is a probation period. Lenders read probation differently. Many ignore it for a permanent role. Some want it completed, which typically means three or six months in, and some accept a letter from the employer confirming that they expect you to pass.
Then employment history. Lenders generally want 12 months of continuous employment, and a gap of more than a few weeks between jobs will be asked about. A gap for travel, study or redundancy is usually fine with a short explanation. Several short jobs in a row are harder, because the lender reads it as income that may not last.
The pay rise matters too. If you have moved from £40,000 to £48,000, a lender using 4.5 times income moves from £180,000 to £216,000 of borrowing, which is often the whole reason for applying now rather than later. A lender that wants the first payslip is confirming that £48,000 is real before lending against it.
What if my new job is on a fixed-term contract or probation?
A fixed-term contract is assessed differently from a permanent role. Lenders want to see the contract length, how many times it has been renewed, and often a track record in the same line of work. A first fixed-term contract with no history is the hardest case. The rules are set out on my fixed-term contract mortgage page. Probation on a permanent role is a lighter issue and most lenders have a clear yes or no on it.
Do I have to tell my lender if I get a new job?
Before completion, yes. A mortgage offer is made on the basis of the information in the application, and a change of employer is a material change. Most offers say so in the conditions. Tell the lender, or tell me and I will, and expect them to reassess. If the new job pays the same or more and is permanent, the offer usually stands, sometimes after the new contract is sent in. If the new job is on probation, temporary or lower paid, the lender may reduce the loan or withdraw the offer, and that is better found out before you exchange than after.
After completion, there is no duty to tell the lender about a new job. The mortgage is in place and the lender’s interest is in the payments being made. The exception is if the change affects your ability to pay, in which case contacting the lender early is the sensible course.
Is it better to apply before or after changing jobs?
If the move is in the next few months and you have not yet signed, applying on the current job is simpler, provided you do not change employer before completion. If you have already signed, the choice is between a lender that accepts the contract now and a lender that wants a payslip in four or five weeks. Neither is wrong, and the answer depends on the timing of the purchase and how much the new salary is needed for the loan.
What I see in practice
The shortest time in a job I have placed was a client who had just moved to a new employer in the same industry. The application went in on the signed contract, and they did not have a payslip from the new role yet. Staying in the same line of work was what made that possible.
Speak to an expert
If you have just started a new job, or are about to, send me the signed contract and your last three payslips from the old role, and I will tell you which lenders will use the new salary now.
What if I am self-employed or on a zero-hours contract in the new role?
Moving from employment to self-employment resets the clock. Lenders want at least one year of accounts or an SA302, and most prefer two, so a new self-employed business is a wait rather than a lender-choice problem. Moving from self-employed to employed is easier, and a permanent contract in the same field is often enough from day one.
Zero-hours and agency work is treated on track record. Lenders want to see 12 months of consistent earnings in that type of work, so a new zero-hours role with no history is difficult, however good the hours look.
Before applying on a new job, there are three things to settle.
- Whether the lender wants the contract, the first payslip or three months in the role.
- Whether a gap before the new role needs explaining.
- Whether the salary increase is essential to the loan or only helpful, because if it is essential the lender has to be one that will use it now.
The last one decides the lender more often than the first.
Need Personal Mortgage Advice?
Every buyer’s situation is different. While this guide explains the general rules, the right mortgage for you depends on your income, deposit, credit history and future plans. If you’d like tailored advice, I can help, with 120+ lenders to choose from.
