Joint Mortgage - 1 person on a Fixed term Contract

lightspeed

Hi

I am currently in the process of applying to HSBC for a joint mortgage.

We have been informed that due to my wife being on a fixed term contract, our application will have to go to the underwriters.

Is this something to worry about as i have heard rumours that HSBC are pretty strict?

and,

is there anything we can do to support the application?

My income = basic 24k
wifes income = 21k (fixed term for 3 years - started in March 11 and she has been employed 10 years prior in the NHS - this was a voluntary change of job)

Neither have us have adverse credit and both have exemplary credit history. Affordability is not an issue.

Mortgage 124k @70-80% LTV

thanks

powerwin

I am not a professional ...

I thought mortgages usually went to the underwriters? The underwriters will need to make a call on the risk of lending when your wife only has a three year contract. I guess they will look at things like the field of work your wife is in and how likely they feel she will get another contract / continued employment.

Rgds

Dave_the_Ginger_Cat

It's standard for areas like fixed term contracts to go to specialist underwriters.

Their assessment will as powerwin suggests look at the type of work she's in and the employment prospects. So for example in teaching, it is much more common to have fixed term contracts.

To help, I'd suggest bringing evidence of her continued former work, her level of qualifications, and any information you have on the trends in fixed term contracts in that sector.

Also, if you get any bonuses, overtime etc, dig out all of that - it will make any application stronger and less reliant on her income

Good luck