Does anyone know how temporary work effects remortgage/mortgage applications?

deb_K

Hi

I don't know if anyone else has come across this - I come back to work after maternity leave to work full time ( as a teacher) and between childcare and a less than helpful boss I'm struggling with the hours.

Fate has dealt me a hand that means I could be forced to reduce my hours. This will impact my salary so I'm looking at supply teaching as a alternative.

Problem 1: Mortgage due in June 2007
I don't know if lenders will accept supply teaching as acceptable occupation. Do I need to stick with permanent even though I would be on less money than supply?

Problem 2- Thinking of moving anyway - can a supply teacher get a decent mortgage deal?

My husband works full time and we've both got v.good credit score.

Our bank said they would prefer a permanent job but would look at us more "favorably" as they have access to our bank account history.

Is this true? Or is our is a friendly neighbourhood bank just trying to keep us with them? (We did take a mortgage with them 18 months ago as they matched deal.)

Any info gratefully received!!
Thanks Deb K :A

toonfish

youir bank is a fair shout - they will often give you a preapproved limit depending on how your account is run. Supply teaching is difficult, especially as you are new to it - after a couple of years, or even one, they at least have a provable income to work with.

Depending on what you want/need it may be possible to secure enough borrowing on your husband's income?

pusscat

Mr Puss and I were both IT contractors on 3 month contracts and had no issue getting a standard high street mortgage from the Woolwich.

We did have guaranteed hours though (37.5 per week but on a months notice) so I guess it depends if you are talking about doing a couple of days supply a week on standby, or covering 6 month maternity posts.....

We used a specialist IT broker, I had already had a mortgage with the Woolwich as a permie, and we had a low LTV. The amount we could borrow was worked out as a multiple of our hourly/daily rates, I don't know what the maximum was though as we only wanted a small amount.

I know that in IT contracting that getting a mortgage is nowhere near as difficult as it used to be, but I don't know if other industry sectors as advanced yet?

Puss

Rick62

It depends how the lender views the supply teaching. If they treat it as contract work then they might accept it as employment, but will really want to see some track record and some indication that the work is likely to continue. If they treat it as self employment then they wold want to see at least one and usually 2 years accounts.

Otherwise, if you OH income is enough you could do it on just this, or you could self-certify your mortgage (generally about 0.5% higher rate, but otherwise the same mortgage from the same lenders, such as Bk of Scotland, BM Solutions etc).

But yes, your bank is telling the truth, if you have banked with them for a while then they can and will take into account how you have conducted your accounts and might well lend to you when they would not of had you been a new customer.

I think you have a number of options, so should not have to let this affect your decision on if to move to supply teaching.

ginger_nuts

when I had a temporary contract I remortgaged and moved to the woolwich.
Infact I got paid off the day before the survey was done ,and I had an interview for my present job 2 hours before my survey was done .
My only prob was redundancy insurance

benqmark

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