How will a change of job affect my mortgage?

Do you need to tell your lender if you change jobs and will it impact your current mortgage or your ability to take out a new deal? Darren Polson explains more

The Question

I’ve been offered a new job, and it includes a healthy pay rise, so I am keen to accept. I am, however, two years into a five-year mortgage. Would changing jobs impact my mortgage and should I let my lender know?

Darren’s Answer

Firstly, congratulations on the new job!

Generally, changing jobs can impact your ability to obtain a mortgage, with lenders looking for a period of stability and history of employment.

Given your circumstances, namely a new job including a pay rise, you don’t need to inform your lender, although disclosure will be required when your current fixed rate ends.

If a change in your circumstances impacted your ability to repay your mortgage, then a discussion with your lender would be advisable. However, this is not the case for you.

At the end of your fixed rate period, you have two choices –

• 1. Remortgage to a new lender

     • This would effectively be a new mortgage application, which is credit-scored, and a full income / expenditure assessment

  2. Switch to a new rate with your current lender

     • This is classed as a rate switch or product transfer
     • The benefits of this are that there is almost never a credit score or need to provide proof of income as the lender has already assumed the risk with your current mortgage

When your fixed rate is coming to an end, speak to a mortgage broker, who can guide you through the process.

Copyright David Johnstone Photography

Meet our expert…

Darren Polson is head of mortgage operations at Aberdein Considine. He has been writing a regular column for What Mortgage for over two years and is now here to answer YOUR questions.

If you have a question for Darren please email kate.saines@emap.com or leave a message in the comments below.