You’ve found your perfect home, but there’s a catch – you’ve just started a new job and you’re still in your probationary period.
Many people believe that mortgage lenders won’t even consider applications from those who haven’t yet passed their probation at work, adding another layer of stress to the already complex house-buying process.
But here’s some good news: getting a mortgage during your probationary period is absolutely possible.
While it does add some complexity to your application, many people successfully secure mortgages during this time with the right preparation and approach.
Understanding Probationary Periods and Mortgages
When you start a new job, you’ll often be placed on a probationary period, usually lasting between three and six months, during which both you and your employer assess whether the role is a good fit.
This period creates uncertainty that makes mortgage lenders a bit wary, as they prefer borrowers with stable, predictable incomes.
What worries lenders isn’t the probation itself, but the risk it represents.
Your probationary period means your employment isn’t yet permanent, and there’s a small chance you might not continue in the role. From a lender’s perspective, this creates a question mark over your future ability to make mortgage payments.
Not all probationary periods are viewed the same way, though. If you’ve been promoted within your current company and are on probation for your new role, lenders will likely see this as lower risk than if you’ve joined a completely new employer.
They’ll also consider whether you’re on a permanent contract with a probationary period or a fixed-term contract that might not be renewed.
How Lenders Assess Mortgage Applications During Probation
When you apply for a mortgage during your probationary period, lenders need to look beyond just your current employment status. They take a much broader view of your financial situation and employment history before making a decision.
If you’ve moved to a similar role within the same industry, lenders will see this as much less risky than if you’ve completely changed career paths.
For example, an accountant moving from one firm to another looks more stable than someone leaving accounting to start a career in retail management.
Industry and Sector Considerations
The sector you work in also influences decisions.
Professionals in high-demand fields like healthcare, IT, and financial services often find lenders more willing to consider their applications during probation because their employment prospects are generally stronger.
A permanent contract with a probationary clause is viewed much more favourably than a fixed-term contract that might not be renewed. Lenders want to know there’s ongoing employment once the probation ends.
Read more: Mortgages for Professionals
Income Structure
How your annual earnings are calculated will form part of the assessment.
A straightforward PAYE annual salary is easier for lenders to assess than complex commission or bonus structures. If a significant portion of your income comes from variable elements like commission, you might need to provide evidence of consistent earnings over time.
Lenders also consider how much of the probationary period you have already completed.
Someone with one month left of a six-month probation presents much less risk than someone who’s just started a new role.
Remember that lenders aren’t simply looking for reasons to decline your application. Rather, they’re attempting to build a complete picture of your financial stability and ability to maintain mortgage payments for years to come.
Common Misconceptions
Many house hunters believe they must wait until their probation ends before applying for a mortgage, but this simply isn’t true.
While being on probation does affect how lenders view your application, it’s not an automatic rejection factor.
Another widespread myth is that you’ll automatically be charged much higher interest rates if you’re on probation.
The reality?
Your interest rate depends on your deposit size, credit score, and the specific mortgage product chosen.
People also often think they’ll need a massive deposit to compensate for being on probation.
While some lenders might request a slightly larger deposit than their minimum requirement, many will still consider standard deposits of 10-15% for those with strong applications in other areas.
Which Lenders Accept Probation Periods?
Our mortgage market offers a range of options for borrowers on probation, but some types of lenders are generally more accommodating than others.
Building societies often take a more personalised approach to lending decisions compared to the big high street banks, making them worth considering if you’re on probation.
Specialist vs High Street Lenders
Specialist lenders, while charging slightly higher rates, will have more flexible policies around employment circumstances.
These lenders don’t always deal directly with the public, which is where mortgage brokers become particularly helpful.
High street banks vary enormously in their approach.
Some might decline applications from anyone on probation, while others will consider them if you meet additional criteria – such as having a strong employment history in the same sector or a larger deposit.
Finding the Right Fit
The size of the lender can also make a difference.
Smaller lenders sometimes have more room to make case-by-case decisions rather than applying blanket policies. They might look at your overall financial picture rather than applying a rigid rule about probation.
It’s worth noting that lenders rarely publicise their specific rules and policies.
Their websites give only general information, which means you might waste time applying to lenders who are unlikely to accept your circumstances.
This lack of transparency makes broker advice particularly valuable, as brokers have up-to-date knowledge of which lenders are currently most receptive to applications from people on probation.
Practical Steps to Improve Your Chances of Approval
Strengthening your application should start well before you submit any paperwork.
First, check your credit report for any errors or issues that might raise concerns. The stronger your credit history, the more likely lenders are to look past the temporary uncertainty of your probation.
Focus on Your Deposit
Saving a larger deposit can make a big difference.
While some borrowers on probation are approved with 10% deposits, having 15% or more gives you access to more lenders and potentially better rates. It additionally reduces the lender’s risk, which can help overcome concerns about your employment status.
Timing and Documentation
If you’ve almost completed your probation, most lenders might be more willing to consider your application than if you’ve just started.
If possible, asking your employer for written confirmation of their intention to make your position permanent can substantially strengthen your case.
Keep your finances clean in the months before applying.
Avoid taking on new debt, make sure all bills are paid on time, and reduce unnecessary spending. Lenders will scrutinise your recent bank statements, so showing good financial management helps build confidence in your application.
If you’ve changed employers but stayed in the same field, get ready to demonstrate the continuity in your career. Prepare a brief explanation of how your new role builds on your previous experience, especially if it represents career progression with increased income.
Finally, be realistic about what you can afford.
Lenders may be more conservative in how much they’ll let you borrow while on probation, so looking at properties within a comfortable budget improves your chances of approval.
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Real-World Scenarios
Let’s look at some real situations where people have successfully secured mortgages during probation.
The Career Mover
James, a software developer with five years of experience, moved to a new company with a £75,000 salary and a six-month probation period. Despite being only two months into his new role, he was approved for a £335,000 mortgage with a 15% deposit. The lender focused on his continuous employment in a high-demand sector and strong credit history, rather than his probationary status.
The Internal Promotion
Sarah, recently promoted to senior manager at the company she’d worked at for three years, was on a six-month probation in her new role. Although on probation, her long history with the same employer meant she secured a £450,000 mortgage with just a 10% deposit. The lender viewed the probation as merely a formality given her established relationship with the employer.
The New Professional
First-time buyer Alex started a new job as an accountant straight after qualifying. Despite being on probation, he secured a £410,000 mortgage with a 15% deposit because he could demonstrate that his role was in high demand and his contract clearly stated the position would become permanent after probation.
The Contractor Challenge
Mary, a contractor in marketing, faced a tougher challenge. Having just started a 12-month contract with a three-month probation period, she needed a £500,000 mortgage. Most high street lenders would have declined her application, but a specialist contractor mortgage lender approved it with a 20% deposit after she provided evidence of consistent contract work in the same field over the previous two years.
These examples show that success depends on your specific circumstances. The common themes are employment continuity, in-demand skills, and presenting your application in the most favourable light.
How to get mortgage ready
Want to make your mortgage application a breeze? Discover the secrets to getting mortgage ready.
Alternative Options
If standard mortgage routes aren’t working out, you still have other options.
Joint Mortgages
Joint mortgage applications can be a great solution if you have a partner or family member with stable employment. Their income and employment status can balance out concerns about your probation, though remember they’ll be equally responsible for the mortgage.
Family Support Options
Family assist mortgages allow parents or close relatives to help, either by using their savings as security or by acting as guarantors. These arrangements can reassure lenders about the safety of their loan despite your probationary status.
Wait It Out
Some borrowers choose to wait until their probation ends before applying, using this time to boost their deposit and improve their credit score. Even a few extra months can make a significant difference to how lenders view your application.
Deposit and Application Strategies
Using a larger deposit can offset the risk lenders associate with probationary employment. By putting down 20-25% instead of 10-15%, you might access lenders who would otherwise decline your application.
How a Mortgage Broker Can Help
An independent mortgage broker brings huge value when you’re applying during a probation period.
They have up-to-date knowledge of each lender’s policies, including those that aren’t publicly advertised. This means they can target your application to lenders most likely to accept your circumstances, saving you from multiple rejections that could harm your credit score.
Brokers understand how to present your application in the best possible light. They’ll highlight the strengths in your case, such as a strong employment history or career progression, and address potential concerns before they become obstacles.
Many specialist lenders work exclusively through brokers and don’t accept direct applications from the public.
These lenders often have more flexible criteria for borrowers on probation, opening up options you wouldn’t have access to otherwise.
Your broker will also guide you on exactly what documentation will help your case, ensuring your application is complete first time.
Next Steps
Getting a mortgage while on probation isn’t the roadblock many people fear.
Though it adds complexity to your application, with the right approach and expectations, you can achieve homeownership without waiting for your probation period to end.
If you’re currently house hunting while on probation, start by checking your credit report, getting mortgage ready, and saving for the largest deposit you can manage.
Then consider speaking with a mortgage broker who specialises in non-standard applications. They’ll help you understand your options based on your specific circumstances and guide you toward the most suitable lenders.
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Frequently Asked Questions
No. If your application is approved, lenders will offer their standard interest rates rather than applying a penalty for being on probation. Your interest rate will be affected by your deposit size, credit score, and the specific mortgage product you choose. Shopping around or using a broker can help ensure you get competitive rates despite your probationary status.
Yes, you should always be honest about your employment situation. Mortgage applications require details of your employment status, and lenders will verify this information through employment references. Attempting to hide your probationary status could be considered mortgage fraud, which has serious consequences. Being upfront allows lenders to properly assess your application from the start.
Yes, your profession can significantly impact your chances. Lenders often view certain professions more favourably, particularly those in high-demand sectors such as healthcare, IT, finance, law, and engineering. If you work in a sector with strong employment prospects, lenders may be more willing to approve your application despite your probationary status.
Read more: Mortgages for Professionals
Yes, first-time buyers can secure mortgages during probation, although it may be more challenging. Lenders will look closely at your employment history prior to your current role, your deposit size, and your credit score. Having a larger deposit (15%+) and a clean credit history can help overcome the dual uncertainties of being both a first-time buyer and on probation.
Read more: First Time Buyer Guide
Yes, you can remortgage during a probationary period, though the same considerations apply as with new mortgages. If you’re remortgaging with your existing lender (product transfer), you are unlikely to have to disclose your employment situation. If switching to a new lender, they’ll assess your application similarly to a new purchase mortgage. Your equity level will be particularly important in this scenario.
The most efficient approach is to work with a whole-of-market mortgage broker who specialises in complex employment situations. They can identify which lenders are most likely to accept your circumstances, saving you from multiple rejections that could harm your credit score.
Read more: What does a mortgage broker do?
