Many people look for new mortgages or remortgages when in the early stages of a new job - and this is common if you have received a significant pay increase and want to improve your mortgage costs.
Revolution Brokers has compiled the most commonly requested information about buying a property on probation and applying for a remortgage.
If you have further questions or need professional support remortgaging on a work probation period, give us a call on 0330 304 3040 or send an email to firstname.lastname@example.org.
Can I Apply for a Remortgage if I'm in a Probationary Period at Work?
You can - and although high street lenders may not be able to help, several specialist lenders will be happy to consider your employment as permanent if you have a contract.
Lenders will look at things such as:
- The type and content of your contract.
- Whether your employer is happy to confirm the placement details.
- How long the probation period is.
- What the terms of the job offer are.
Underwriters will be unlikely to consider pay over and above your basic salary at this stage, as if you are on probation it can be hard to prove what bonus, overtime or commission you might expect to receive in the future.
How Can I Apply for a Remortgage When in a New Job?
The best option is to contact the Revolution team as an independent, whole-of-market broker.
One way to improve your application is to demonstrate that you have a year or more experience in the same sector. That means that if the probation period were not successful, you'd have a good chance of finding a similar job and therefore you are a lower risk.
In most cases, using the length of your employment as a basis is used in other lending scenarios such as applying for a bank overdraft.
Why is it More Complicated to Remortgage in a Probationary Period?
The problem is that many mainstream lenders consider a probation period applicant higher risk. There is a chance that you won't complete the probation, and the role will not become permanent.
It is also possible that, were the business to announce redundancies, newer staff not owed redundancy pay and on probation would be the highest risk employees.
When you are new in a job, you won't be able to provide a minimum number of payslips.
However, you can undoubtedly find competitive lending, and by working with an experienced broker, you can secure attractive rates with reputed lenders.
Does My Job Type Make a Difference to my Remortgage Application?
It does because public sector workers - like doctors and teachers - have a more secure work base.
Your application will be evaluated on its merit, so it is vital to work with a specialist broker who can ensure you put your application forward in the most favourable way.
How Does Being in Probation in My Sector Impact My Remortgage Options?
Some roles attract different mortgages; such as key workers who can apply for better mortgage rates. These are available to staff in education, health and public safety roles, amongst others.
Keyworker mortgages are typically available to staff working for:
- Ambulance Service
- Fire Brigade
- HM Prisons
- Local authority schools
- Police services
- Public Transport
Unfortunately, this type of mortgage is rare, and many of the government-funded schemes no longer exist. However, keyworker mortgages are available through selected lenders. If you work in a public sector role and are on probation, you have a far higher chance of approval with a mortgage aimed explicitly at your sector.
For those outside of the public sector, there are still multiple options - give us a call on 0330 304 3040, and we'll be happy to explain the best alternatives!
Does the Length of My Probation Period Impact My Remortgage?
Not really, no - although a very long or very short probation period might make a difference.
Some lenders will make an offer, but not release funds until your probation period ends. This can be a problem if you have a lengthy probation period, and want to remortgage or buy a new property quickly.
The UK average probation period is six months, and some lenders will be happy to consider an application at any stage in the process.
Most niche lenders will look at your previous employment history to help them meet the criteria. For example, if you have had similar roles, and a record of reliable and stable income, you are more likely to meet the requirements.
Which Mortgage Lenders Can I Apply to When on Probation?
High street lenders and mortgage providers can sometimes offer to lend to applicants in probation - but the rates are often much higher than you would expect.
Nationwide Probation Period Mortgage
Nationwide will offer a remortgage if you are on probation, but they will not lend to casual staff, ad hoc employees, or those on zero-hours contracts.
Halifax Probation Period Mortgage
Halifax will also consider applications, but the probation period must be the start of a permanent contract.
If the contract has the option for the employer to terminate the employment, Halifax will not consider the application.
Santander Probation Period Mortgage
Santander requires a six-month employment history, but this can be with different employers. If you do not have a steady six-month history, you are unlikely to be able to apply.
This demonstrates the limitations around mainstream mortgage lending and remortgage financing for those on probation, so it is crucial to avoid applying to your usual bank without checking what their criteria are.
FAQs: Remortgages When on a Probationary Period
Here are the answers to some of the most commonly asked questions about remortgages while on probation.
Can I Get a Remortgage as a New Teacher on Probation?
Yes, you fall into a keyworker category so have several options.
Can I Remortgage as a Police Officer on Job Probation?
Yes, as with teachers, you work in the public sector and therefore will be able to secure a remortgage even on your probation period.
Can I Remortgage on Job Probation in Ireland?
Indeed you can. The same criteria are available in Ireland as throughout the UK.
There are fewer lenders in Scotland and Ireland, and some have postcode limitations, so in either country, it is even more important to consult an experienced broker for advice.
Is it Possible to Remortgage During Your Work Probation Period?
If you want to remortgage with the same lender, you can sometimes do so, but it all depends on their criteria, and how closely you fit the other eligibility requirements.
For example, if your income has dropped, they probably won't approve a remortgage.
Expert Independent Advice with Remortgaging on Probation
For tailored help and support finding the most competitive mortgages and remortgages when on probation, contact Revolution Brokers on 0330 304 3040 or send us a message to email@example.com.