Changing job with a mortgage alone

[Muffinpuffin]

Hi all , maybe it's a stupid question but I was wondering if anyone knows what the general rules are regarding taking on a mortgage (as a single homeowner) and then switching jobs after securing the loan and property?

I currently have a permanent job contract however would be looking to change job after getting my own place. Would I need to notify the bank if I did so and what would happen if my new salary was lower than the one which was used to get the mortgage in the first place? Or is this only an issue when it comes to remortgaging/ when your mortgage contract is up for renewal? I.e. could I switch job and providing I can match my current income when my mortgage deal is due to renew in xx years that would be ok?

Thanks and hope that's not a stupid question, it would take some weight off my mind to know the rules on this

You don't need to let them know. It's only an issue when you remortgage or if you can't afford the payments. Otherwise mortgage companies would be revoking mortgages for maternity leave, layoffs, retirement, etc.

Thank you for letting me know

The only thing about getting a job with a lower salary is whether you would meet the affordability criteria when you come to remortgage. So perhaps set a longer initial fixed term?

You won't have the house repossessed or anything crazy of you don't meet the affordability when you want to remortgage, but you won't be able to go onto a new fixed term, and will have to go onto the rolling variable rate, whatever that is at the time. It will be much more expensive than what you were paying though, so you need to make sure you can afford that.

Thanks for letting me know, I would like to retrain in the future and will plan on getting a lodger and using my savings to get by during this time before I start a new job at a similar salary level. Previously I had a joint mortgage with a previous partner so it's new to me having the full responsibility alone. Thank you

I don't know anything about your financial situation obviously OP, but it might be worth considering when you want to retrain and how much you will have paid off by then.

For ease of explanation, assume that mortgage rates for fixed terms stay the same throughout. Imagine you take on a mortgage to pay back £100k and fix for two years over 25years at 1%. Your repayments are £377 pcm. After 2 years you have £92883 left on the mortgage and remortgage so your repayments drop to £350pcm. So your affordability has effectively increased and continues to do so over time iyswim. After 5 years you'd be remortgaging on £81939, so again your affordability has increased.

If you can overpay, even by a small amount this effect is magnified, so might be a way of affording to retrain and afford a house? MSE website has a great mortgage overpayment calculator, comparing the difference between overpaying and not over time.