Why Probationary Periods Create Mortgage Problems
Lenders assess income stability as part of their affordability review. A probationary period - typically three to six months in most UK employment contracts - represents a time when employment could be terminated more easily and the borrower's long-term income is less certain. Standard lenders often decline applications where the primary income earner has not yet passed probation, or require the application to be delayed until the probationary period is complete.
Lenders Who Accept Probationary Period Income
A meaningful number of specialist building societies and challenger banks will accept new employment income during probation, subject to certain conditions: the new role is in the same field as previous employment (the borrower is not making a career change); the salary is confirmed in a written offer letter or employment contract; the borrower has been in continuous employment (or self-employment) with no significant gaps; and the overall credit profile is clean. For these borrowers, the income is counted in full from day one.
- The new role is in the same field as previous employment (the borrower is not making a career change).
- The salary is confirmed in a written offer letter or employment contract.
- The borrower has been in continuous employment (or self-employment) with no significant gaps.
- The overall credit profile is clean.
Documents for a Probationary Period Mortgage
Where a lender will accept new employment during probation, the typical evidence required is set out below.
- A signed employment contract or offer letter confirming the role, salary, start date, and probationary period terms.
- At least one payslip from the new employer (or the most recent payslips from the previous employer if the role is very new).
- P60 from the most recent previous employer.
- Three to six months of bank statements.
Alternatives if You Must Wait
Where the lender panel does not extend to accepting probationary period income, the practical options are as follows.
- Delay the application until the probationary period is complete (typically three to six months).
- Apply jointly with a partner or co-borrower who has stable income, using their income as the primary basis.
- If purchasing a property rather than remortgaging, discuss with the vendor or estate agent about a delayed exchange or completion timeline that aligns with probation completion.
Zero Hours Contracts vs Probationary Periods
A probationary period is distinct from a zero hours contract (see our Zero Hours Contract Mortgage page). Probationary employment is typically full-time, permanent employment with a set salary - it is the stability of the employment rather than the income amount that is in question. Zero hours contracts create a different challenge around income consistency and verifiability.