Starting a new job is exciting. But if you also want to buy a home, your probation period can feel like a problem. Many people worry that lenders will turn them down if they are not yet past their probation. The good news is that it is possible to get a mortgage while on probation. It can be harder, but it is not out of reach.
This guide explains what lenders look for, what to expect, and how to give your application the best chance.
Does the length of my probation affect getting a mortgage?
Yes, it can. Most lenders want to see that your job is stable. If you are near the end of your probation, some lenders will look more kindly on your application than if you just started.
A probation period is usually three to six months long. The closer you are to passing it, the less risk a lender sees. Some lenders will not consider you at all until your probation is over. Others are more open to it.
The type of job matters too. If you work in a field where jobs are steady and well paid, a lender may be less worried. A teacher, nurse, or engineer on probation may find it easier than someone in a less stable role.
Some lenders will ask for a letter from your employer. This letter should confirm your start date, your salary, and that your role is expected to continue after your probation ends.
Will I get a better mortgage after my probation period?
In most cases, yes. Once your probation is over, you are seen as a more settled employee. This makes lenders more willing to lend and may mean you can access better deals.
After probation, you will usually have more lenders to choose from. More choice means more chance of finding a lower rate or better terms. You may also be able to borrow more, as some lenders cap how much they will lend to someone still on probation.
Waiting until after your probation ends may give you access to more options. But if you need to move now, there are lenders who will still consider you during your probation.
Is it a good idea to get a mortgage in a probation period?
It depends on your situation. There are times when it makes sense, and times when it is better to wait.
It may make sense if:
- You have found a home you want and cannot wait any longer.
- Your new job pays more than your old one and your income is clear.
- Your probation is almost over and your employer is happy to write a letter to support your case.
It may be better to wait if:
- Your probation has only just started.
- You are not sure if the job is the right fit for you.
- You want access to the widest range of lenders and the best rates.
If you are unsure, a mortgage adviser can help you weigh up your options.
How many pay slips do I need for a mortgage in a probation period?
Most lenders ask for at least one to three months of pay slips. If you are on probation, you may only have one or two. This is fine for some lenders, but others will want more.
As well as pay slips, lenders will usually want to see:
- Proof of your employment, such as a contract or a letter from your employer.
- Bank statements, usually for the last three months.
- Photo ID and proof of your address.
If your employer can write a letter to confirm your salary and say that your job will continue, this can help a lot. It shows the lender that your income is likely to be stable going forward.
What deposit is needed for a mortgage whilst on probation?
The deposit rules for someone on probation are usually the same as for any other buyer. Most lenders ask for at least 5% to 10% of the property price as a deposit.
That said, a bigger deposit can help your case. If you put down more, the lender takes on less risk. This can make them more willing to lend, even if your job is new. A larger deposit may open up more options, though this will depend on the lender and your circumstances.
Some specialist lenders who work with people in less standard situations may also be more open to lower deposits. A mortgage adviser can help you find the right lender for your needs.
How much can be borrowed?
How much you can borrow depends on your income, your costs, and the lender you apply with. Most lenders will let you borrow up to four or four and a half times your yearly income. Some will go higher if your finances are strong.
Being on probation does not always change the amount you can borrow. But it can limit which lenders will consider you. Fewer options means less chance of finding the best deal.
Your credit score also plays a part. A good credit score shows lenders that you manage money well. This can help offset the fact that your job is new.
If you have other debts, such as a car loan or credit card balance, these will reduce how much you can borrow. A mortgage adviser can look at your full picture and help you understand your options.
Final thoughts
Being on probation does not mean you cannot get a mortgage. It just means you need to find the right lender. Some lenders are set up to help people in less standard situations, such as those who have just started a new job.
The key things that will help your case are a letter from your employer, a decent deposit, a good credit score, and clear proof of your income.
This information is for general guidance only. Your own situation will affect what is available to you, so it is always worth speaking to a qualified mortgage adviser before applying. Each lender has different mortgage criteria.
If you are on probation and want to buy a home, speak with a mortgage broker who will be able to offer you professional advice.