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Fixed Term Contracts and Mortgage

brownjl
brownjl Posts: 13 Forumite
Part of the Furniture Combo Breaker
edited 6 March 2011 at 11:47PM in Mortgages & endowments
Hello,
We are looking for a bit of advice. My wife and I have seen a property that we like – it is nearby where we grew up and it is close to family. It is being advertised at 82K.

We have 30K currently saved up but some of this will be needed for buying fees so I would say a safe deposit of 26K - giving us roughly a 70% LTV. With regards to salary my wife is in permanent employment with a salary of 17K. I have a salary of 29K but it is a fixed term contract (researcher) entering my forth year with current termination date of February 2012 which should hopefully be extended. We also have one dependant (a 2 year old). We have no debt and our credit history should be fairly clean, only missed one credit card payment (a mess up with the direct debit) about two years ago.

Can you foresee me having any difficulty in getting a mortgage with my fixed term contract? We have not tried yet but with the market drying up and increased leanding criteria we are a bit concerned. Having a look around the internet we are thinking of going for Nationwide 3 year Fixed mortgage (4.49%) as it has no fees and also helps with legal fees so we think it should be the best bet.

Thanks,

James

Comments

  • Wh05apk
    Wh05apk Posts: 2,938 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    You shouldn't have too much trouble, if the contract has already been renewed 3 times, also you could probably get the mortgage you want, solely on your wifes income.
    I am a mortgage adviser.
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Hugbubble
    Hugbubble Posts: 464 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    Hi

    I work in a University and have many friends who are fixed term researchers, and none of them have had any problems getting a mortgage, even with relatively short durations left on their contracts.
  • shar46y
    shar46y Posts: 249 Forumite
    Many of my colleagues are researchers on fixed-term contracts and managed to get mortgages. I think it does depend who you apply to.

    Back when we applied for our first mortgage (5 years ago) OH and I were both fixed term, Halifax refused to even talk to us but we had no problem getting a mortgage from Nationwide.
  • brownjl
    brownjl Posts: 13 Forumite
    Part of the Furniture Combo Breaker
    Ah thanks for the replies it was the answer I was hoping for.

    Now we just have to decide if its the house we want! Its close to family but M6 40 miles around preston to work so it will be a bit of a commute.

    James
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