Remortgage with temporary job contract?

philozopher

Hi all,

First post and hope I can get some advice.

I am a single mother and have been training as a teacher for the last two years. I now have a job but it is a temporary contract til August 2010. The school gives out temporary contracts to all its NQTS.

I got a mortgage on a self cert a couple of years ago and the fixed rate has just come to an end - it is now at 5.34% I can barely afford this on my new salary so I tried to remortgage and everyone seemed keen to offer me a deal (my LTV is about 40%) until they found out I only had a temporary contract and I've been told that I simply cannot remortgage because of this and also because I am "on my own".

Does anyone know if this is true? Won't anyone remortgage someone who has a job on a temporary contract? I thought my LTV would stand for something. Is there anything I can do to get a remortgage?

Thank you

Leon_W

You would be surprised how little difference the LTV makes on a mortgage deal apart from the rate that is charged.

You can either afford a mortgage or you can't. For instance, person A lives in a million pound mansion outright, wants to mortgage just £50000, but doesn't have a job. How can any lender grant this and be seen to be lending responsibly ? They can't.

Person B needs a 95% mortgage and earns way in excess of the required mortgage amount. Money leant responsibly, so away you go.

You haven't posted any figures, income, mortgage amount etc so it's not really possible to give you any fuller answer.

Regards

philozopher

Thank you for your reply!

Figures are approximately:
mortgage required 70,000
Value of house 200,000
Salary 21,000

The interest on the mortgage has been paid the last two years because of my student status but now of course I am working I have to pay it in full.

herbiesjp

First port of call would be your current lender to see what they could offer

Then you would need to compare against the rest of the market

You may be able to find something, but you will probably benefit from a professionals experience here, as you have found out yourself it is not going to be easy, based on your employment status

Radiantsoul

How much notice is there though? I thought teachers have to give and be given quite a bit of notice and in practice it is a pretty secure job.

philozopher

I wish mortgage lenders would take that into account - lol!

You'd think they'd be queing up to mortgage me - they'd make money on me if my house got repossessed. Don't understand, that's all. Makes me feel discriminated against for being a single parent although I'm sure it's not the case.

herbiesjp

You are not being discriminated against - like most things in life, you just need to know the right places to look.

philozopher

Ah well yes of course and that is why I decided to post on here:)

Any advice on where to start?