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Your occupation could have a big impact on how easy it is to obtain a mortgage. Below is a guide to some of the ways in which your job could affect your mortgage application and some tips for helping you to secure a mortgage.
Certain jobs are seen as more stable
It’s much easier to get a mortgage with a full-time permanent job. If you work part time or often experience seasons with little or no work, a lender may not see your career as being particularly stable. However, some lenders may still give you a chance.
Some industries may also be seen as more secure than others. Mortgage lenders generally have no problem lending to teachers and nurses for this reason.
Certain jobs may even give you access to mortgage discounts
If you’re a key worker, you may even be able to get a discount on a mortgage. For instance if you’re a doctor or a nurse working for the NHS, you may be able to apply for an NHS mortgage, which has reduced interest rates. This is something definitely worth looking into.
Your salary can have a big impact on your eligibility
It can be harder to obtain a mortgage on a lower salary. Lenders are more likely to trust that you will make your repayments if you have a higher income.
That said, you can still secure a mortgage on a lower income – there are lenders that may specialise in this. A good credit score and a history of paying bills on time can help you when applying on a low income (if you currently rent your home, this could show that you can afford a certain amount per month).
Switching jobs shortly beforehand could have an impact too
You should try to avoid switching jobs within six months prior to applying for a mortgage. Having a long-term job can show that your income is secure and that it’s less likely to change in the future (although there’s nothing to stop you getting a new job once a mortgage has been approved).
Sometimes switching jobs is necessary while applying for a mortgage. For instance, if you’re moving across the country and buying a new home to live in, it’s possible that you may have to get a new job. Mortgage lenders may be more sympathetic in these cases. Being able to provide proof that you have been accepted for the new job could help.
You may have to be self-employed for two years before considering a mortgage
If you’ve recently started a business or started working freelance, you may not be able to apply for a mortgage immediately. Many lenders prefer you to have at least two years proof of income if you are self-employed. This can give lenders a better idea of how stable your business/work is.
There are mortgage lenders that cater to self-employed applicants. Applying to one of these lenders could possibly increase your chance of getting approved.