Mortgage approval and job change

B

brickhouse

Registered User
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8
Just wondering.
Currently looking to move jobs but have sale agreed a house.
Will I have to re apply? Or will it effect my mortgage application.
It’s a higher salary than I needed to sale agree but worried now that as we aren’t due to
Get the house for 3/4months it might be effected by the new position. It’s a permanent role.
Thanks
 
Banks will generally have a problem with you being on probation, which I imagine you will be on for a short period in any new job.

I think you are right to be anxious and I would personally wait until after drawing down funds before switching jobs. My experience is that banks will stick to their credit policies (e.g., no applicants on probation), even when it is a plainly stupid position for them to take. If you have a broker, I suggest checking with them on the best course of action. If you ask the bank, they will probably take an age to respond and then say 'no, you can't be on probation'.
 
noelÓm said:
if you have a broker, I suggest checking with them on the best course of action. If you ask the bank, they will probably take an age to respond and then say 'no, you can't be on probation'.
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That makes sense.

It depends on the bank, but in my limited experience once you had approval they didn't look to re-confirm things before drawdown.

From memory we gave them salary-related material in early April (for March) and it's hazy what happened next but they didn't look for any salary-related documents re-confirmed until funds were drawn down in early July. I presume there is some threshold where they have to re-assess if a sale drags on for a long period. A broker would give you the best idea.
 
We had to provide new payslips when drawing down a mortgage some 4-5 months after approval in principal to show that employment circumstnaces hadn' tchanged. A job change would have meant going back to the drawing board as it does introduce an additional level of risk, but that risk may be looked at differently depending on the employment sector.
 
You are taking a risk. Banks give mortgages to people in permanent roles (exceptions for some professions such as teachers). If you are on probation and they ask for up to date payslips, you may lose the house and have to wait until you have completed probation. You can do two things:
  1. Explain to your new employer that you are sale agreed on the property and can they wait until it goes through. It will take a few months.
  2. Waive the probationary period and make you permanent from the off. From a legal point of view, it makes no difference anyway. they can get rid of you anyway within the first year (?) regardless of whether you are permanent or on probation.
It is a big risk to switch jobs at this late stage.


Steven
www.bluewaterfp.ie
 
Steven Barrett said:
You are taking a risk. Banks give mortgages to people in permanent roles (exceptions for some professions such as teachers). If you are on probation and they ask for up to date payslips, you may lose the house and have to wait until you have completed probation. You can do two things:
  1. Explain to your new employer that you are sale agreed on the property and can they wait until it goes through. It will take a few months.
  2. Waive the probationary period and make you permanent from the off. From a legal point of view, it makes no difference anyway. they can get rid of you anyway within the first year (?) regardless of whether you are permanent or on probation.
It is a big risk to switch jobs at this late stage.


Steven
www.bluewaterfp.ie
Click to expand...
This exactly, we successfulyl negotiated a one month probationary period for this reason when moving house.
Also, having been mortgage approved, we had to go through pretty much a full re-approval process when the contracts were signed, as the time period was more than 6 months I believe.
 
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