how does a temporary contract affect mortgage?

darla82

Hi,

I have a temporary (10 mths) contract with my company having already worked a 1yr maternity cover with them previously and am pretty confident they intend to give me a permanent job in March when my contract runs out.

I want to arrange a (first time buyer's) mortgage asap, partly due to impatience and partly because people keep saying it's a buyer's market and if I don't do it now I'll lose out, regret it etc etc.

1) Do I have to tell the mortgage company that my contract is only temporary? (Obviously I appreciate my own financial risk in getting a mortgage without a permanent job but I'm putting that to one side for now).

2) If the answer is yes, is there realistically any chance they will give us a mortgage at all?

I'm part of a couple, both earning about £21k with a £50k cash deposit (lucky), and we live in the SE so the houses we're looking at would cost at least £200k, possibly nearer £230k.

Any advice much appreciated!

D

cte1111

1) Yes 2) No

beecher2

You'll need to wait until March, and possibly later if you're put on a probationary period. Hold off and don't panic - there's a lot to support the idea that prices will stagnate over the next 6 months. Build up your deposit in the meantime.

Mobility151990

When you say temporary contract, do you mean it's fixed contract 10 month contract that just isn't automatically renewing???

debsinbrighton

Hi, we've just been through this. My partner is on a temporary contract with the NHS, I am on a permanent contract. Our mortgage advisor told us that my partner's income could only be taken into account once he had been in his job for one year. I'm not sure how that would work with you having been on two separate contracts, so it would be worth checking with a broker about this.

We ended up having to take the mortgage on my income alone, which was just about do-able as the mortgage was 5 times my income.