Temporary employment contracts + mortgages....help!

mrpop

Hello,

Wondering if anyone could offer us a little bit of advice please.

My Husband and myself have recently relocated to Lancashire, and are renting. We have rented properties for 4.5 years, and have always paid on time. We have no adverse credit, but do have credit cards of appx £9.5k (which is heading in the right direction).

My Husband is the sole wage earner, as I stay at home with the kids. We have his salary, which is appx £23k per yr, plus other things that will go towards a mortgage (Disability Living Allowance for life, maintenance for a child for at least another 6 yrs, carers allowance....)which amounts to appx £10, 230 PA.

Now to our dilemma! My Husband is only on a temporary contract, which runs 'til May 2008. He has worked in the similar field (local government) for at least the last 5 years.......with only 2 months of unemployment after a redundancy and a ST contract coming to an end. Again during this time we've always met rent and other bill repayments.

I approached my bank (Barclays) today, and they initially said they could lend to us. Later on they said they could lend to us based on the way I have run my account only.....meaning they could only lend £53K. My Husband contacted his bank who said he has to go into the branch...which is very awkward.

Does anyone know of a lender who will lend on a temporary contract? We would consider a shared ownership scheme, as we're fully aware of the fact we're not mega rich.......but still want to be able to get a loan for something we feel we're going to want to live in for a long time.

Sorry for the long message, thought it best to put info in too.......and thank you in advance for any help you may be able to give.

S

jamesd

That income sounds likely to be fine for many lenders, how long has this particular contract for him been running so far? I don't suppose you have a 20% or 25% deposit available? What is the amount of mortgage and value of the property?

So long as the property is at a reasonable multiple of income I expect a mortgage broker could find a mortgage without much trouble. One of those here might have some thoughts or if you say more specifically which part of Lancashire might know a local broker to recommend.

Rather than shared ownership you might consider a mixture of interest only and repayment, adjusting the mix to get you to a mortgage payment you can readily afford. Selecting a mortgage that allows overpayments will let you pay more as circumstances allow.

mrpop

Thank you for your reply.

We don't have a large deposit no, but we have around £5K deposit IF we need to use it - ideally we'd like to take a 100% mortgage.

Barclays initially said they could lend £87K - but this was before the lady went off and found out about their policy on temp. contracts....... then when she came back she said no to my Husbands contract & based it on my account.

We haven't found a house yet, we simply are testing the water. Around here there's very little for £87K, hence wondering if S/O would be a better option, especially with needing adaptations for disability in our home anyway.

Thanks too for the advice about the different types of mortgage - that is something we hadn't really considered, and is worth bearing in mind.

Thanks again,

S

mrpop

Would anyone be able to tell us the names of lenders who would consider temporary contracts please?

We do appreciate any replies :grouphug:

Jo_anne_2

I have been on temporary contracts all my working life (max 2-3 year contracts) and we have not found it difficult to get a mortgage, so I am sure there are lenders who will accept that. Our current mortgage is with Nationwide, so they might be worth a try.