Getting a mortgage with a new job, on probation, or self-employed.
Lenders want to know your income is reliable. If you have just started a job, are on probation, or work for yourself, some lenders say no and others say yes. Knowing which is the whole game.
New job or probation
Many lenders want three to six months in the job, or a completed probation. Others accept a signed contract and a first payslip, especially if you have stayed in the same line of work. A few will lend on a job offer before you start. Tell your broker; do not guess.
Self-employed, sole trader or partner
The standard ask is two years of accounts or tax calculations (SA302s) and tax year overviews from HMRC. Lenders usually average the last two years, or take the latest if it is lower. One year of accounts is possible with some lenders, especially if you were employed in the same trade before.
Company director
Lenders look at salary plus dividends, or salary plus your share of net profit, depending on the lender. If you keep profit in the company, choose a lender that uses net profit; it can double what you can borrow.
Contractors
Day-rate contractors can often borrow on the day rate times 5 times 46 weeks, with some lenders, if the contract has a few months to run and you have a track record.
Bonus, commission, overtime
Usually counted at 50% to 100% if regular and evidenced over 12 to 24 months on payslips and P60s. Some lenders ignore it entirely. This is another place a broker earns their keep.
Zero-hours and agency
Harder but not impossible: 12 months of consistent earnings, evidenced, with a lender who understands it.
What to prepare
- Employed: three months' payslips, latest P60, contract if new.
- Self-employed: two years' SA302s and tax year overviews, accounts, three months' business and personal statements, accountant's details.
- Everyone: keep the bank statements clean and the deposit trail clear.
A note on the numbers. Thresholds, schemes and typical costs are correct as far as we know at the time of writing and are for England and Northern Ireland unless we say otherwise. Rules change and lenders differ. Check the current position, and get advice from a qualified broker before you commit.
Quick answers
Should I wait until probation ends?
Not necessarily. Some lenders lend during probation. If your ideal lender does not, the wait may be worth it for the rate; a broker can compare.
I've been self-employed for one year. Can I get a mortgage?
With some lenders, yes, particularly if you have a first year of accounts and were employed in the same field before. Two years opens far more doors.
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