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 –
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Remortgage to a new lender
- This would effectively be a new mortgage application, which is credit-scored, and a full income / expenditure assessment
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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
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When your fixed rate is coming to an end, speak to a mortgage broker, who can guide you through the process.
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.
