Mortgage for temporary workers

clngai

Hi all,
I am looking to purchase my first properties, but I have a few questions and hopefully I can get some advise from you guys.

I just started a new job 3 months ago, which it is a temporary to permanent role. Everyone work for this company start as temporart to permanent. Hence, my contact does not particular stated how long the contract will last.

When I apply for mortgage, many of the lenders does not want to offer me as my case is a bit special. Does anyone of you know any ways or any lenders will accept my mortgage application?

Also, if I go with the 5% deposit government scheme, will that be easier for me to climb up the property ladder?

Thank you in advance.

Thrugelmir

You'll need the role to become permanent before applying for a mortgage.
As there's no guarantee you'll be retained.

kingstreet

clngai wrote: »

Hi all,
I am looking to purchase my first properties, but I have a few questions and hopefully I can get some advise from you guys.

I just started a new job 3 months ago, which it is a temporary to permanent role. Everyone work for this company start as temporart to permanent. Hence, my contact does not particular stated how long the contract will last.

When I apply for mortgage, many of the lenders does not want to offer me as my case is a bit special. Does anyone of you know any ways or any lenders will accept my mortgage application?

No. Sorry. A big deposit may have helped but it appears this isn't possible. Temporary employment is likely to prevent you obtaining a mortgage until you are confirmed permanent.

Also, if I go with the 5% deposit government scheme, will that be easier for me to climb up the property ladder?

No. I'm assuming you're talking about FirstBuy where you get a mortgage and an interest-free loan on top of it? As these are normally linked to newbuild properties, the risk of future negative equity and being stuck where you are unable to sell is increased.

clngai

Thanks for your advise.

The government scheme is the new one which the govement will back 95% mortgage:
http://www.guardian.co.uk/society/2011/nov/21/housing-strategy-government-backed-mortgages

I was just thinking will that be easier for me to get a mortgage, however this scheme tend to be new build house only.

abankerbutnotafatcat

You can get a mortgage as a contract employee - i did. However, there are many other things to take into account as well, not least deposit size. Rather than phone around I went straight to a mortgage broker and ended up with Halifax.

Marie27lol

Hi Clngai

We are in the same Catch22 position, except both of us are temps

I am working in a temp-2-perm post (15 months later), and now believe this offer will never materialise.

DH has been working for the same agency consistently (except for the wedding & honeymoon), for the same organisation for over 2 years over a 3 year period.

DH's bank have said we could have a mortgage based on the following conditions:

• 10% deposit + £4-5k for fees
• 1 of us in a permanent post
• 2nd person to have worked in the temp post for 18months (and they would take this wage into 'consideration'), which I understand to mean similar to shares / rental income etc.

Which is feasible - but to not the best the better interest rates. Things would improve if we manged 15/20% etc.

HOWEVER, and with the new TWA, things may change...

As employers need to treat temps as equal colleagues, there could also be an arguement for banks to do the same. Although I have heard nor read anything.

Does anyone have any ideas?

Good luck.
M

Thrugelmir

Marie27lol wrote: »

As employers need to treat temps as equal colleagues, there could also be an arguement for banks to do the same. Although I have heard nor read anything.

There is a concern that many temps will become employees of the recruitment agencies, not the actual employers. Thereby bypassing the new Agency Workers regulations.

clngai

Thanks for all of your advise.

After discussed with my girlfriend, I decide to try my luck to see if I can get a mortgage with my current situation. Is there any mortgage advisor you guys can remommend or previous used ?
I know this whole house buying things will be stressful, this is my first time and I really need some advise and help.

Thank you very much