On fixed-term contract but would like a mortgage: is it possible?

Teti

Hello,

My husband and I would like to buy our first home. Unfortunately, we are both on fixed-term contracts (until July 2012). We believe we have a good credit score (even though we have not checked this lately) as we have not missed any payments etc., our annual salaries (together) are around £60,000 and we have a deposit of around £100,000. Is there any chance that we can get a mortgage for a house costing around £300,000? And if, by any chance, the answer would be yes, would the interest be reasonable? Or is it better to wait until (hopefully) we get permanent jobs?

Many thanks in advance and I look forward to any advice you may have!

GMS

It is possible.

Best to speak to a 'Whole of Market' broker to see which lenders will accept.

If the lender accepts the interest rate would be the same as for a permanently employed person.

Do you both work for the same company? You may want to consider what could happen if for any reason you both did not get contracts renewed.

Teti

Hello,

thank you very much for the prompt reply and advice. It gives us some hope!

We do not work for the same company but as our jobs are in the universities sector we are concerned that there will be fewer new posts/renewals of contracts in two years time because of the spending cuts.

Based on our situation, as I described in my earlier post as well, do you think that we should limit our expectations and go for a cheaper home? It's somewhat difficult as the city we are living in is very expensive in terms of housing but I guess it could make more sense.

Many thanks again!