How early into starting a new role can I apply for a mortgage ?

Posted on 8 May 2016 by Isla

"Hello - I am just about to Graduate from University and have a permanent job offer from PwC as a trainee Accountant on a salary of £25,000. However I do not start this role until 12th September but have seen an apartment that I wish to buy for £228,000 and require a 50% mortgage. Please can you advise how early can I apply for a mortgage?"

Thank you for your enquiry via our ‘Ask the Experts’ section of our website.

Although not knowing your full financial position, it would appear, based on the information you have supplied that this something we can help you to explore in the future. You will have a salary of £25,000k and you are looking to buy a property valued around £228,000k. As a rough guide, in the current market you can achieve around 4 times your gross income, sometimes even more subject to lending criteria and affordability calculations. If you have taken a student loan to support your studies, this will be taken into consideration by the lender and will be deducted from your gross pay when calculating how much you can borrow.  As with any purchase it's important to remember that you will also need to cover other costs such as stamp duty, arrangement fees and solicitor costs.

I assume that you have no probationary period, as this may limit the lenders we can approach to secure a mortgage. There are lenders who have no issue with probationary periods and subject to policy can verify income via contract of employment and salary payslip. If the probationary period is less than 3 months, some lenders will accept a mortgage application regardless of the time frame.

Ideally you should be in a position to proceed with the transaction in October as most lenders will require 1 months’ payslip and latest bank statement. The lender may also request a reference from your employer to confirm income. To enable me to provide you with a definitive answer we would need full sight of your full financial details, including all your financial commitments so that we can find the right deal for you. Given all lenders use differing calculations to establish the amount of mortgage that are prepared to consider I recommend that you contact an adviser at John Charcol  nearer the time and we will be able to recommend the most suitable lender for you.

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Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.

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