No permanent job can I get mortagage?

ques82

Hi,

We are planning to buy a house but are worried we will not get mortgage approved. The main issue is none of us have permanent jobs. My husband has been working for investment bank for nearly 5 years now and is on rolling temporary position.

I’ve recently changed job as of May this year and is one year maternity contract however I’ve been told they are interested in creating a position for me although I know I should not trust this until I have official paperwork.

The main reason for us moving is due to my son’s school. We both earn more than £30,000 each annually and have saved enough to cover the deposit however we fear that due to our jobs not being permanent we will not get a mortagage.

Please advise if there is an alternate way.

ACG

I dont think yours would be acceptable as there is a set end date in place. Until you have something in writing i dont think any lender would accept hear say as a future job.

Your husbands im not sure about, they may accept his but i think we would need more info such as when he started, how long the contract is for (ie renewed each month or every 6 months etc).

holly_hobby

Re hubby - the lender will look at his position and role within the organisation (ie snr management etc), and how many times his temp employment has been renewed. (also, I have a feeling and a niggle at the back of my mind, that any temp position that has been renewed in excess of 2 yrs, should be transferred to permanent - unless you mean he is contracted by the co on a rolling 6 mth contract basis, which is a different proposition to being a temp member of staff)

Re you - you are covering maternity leave - so unless they will formally commit to a perm position at the end of your temp position its doubtful that this will be considered viable income to support a mge app.

You need to speak to an experienced broker, or if you wanted to just get a flavour have a chat with a high st lender such as Halifax and/or a lender whom doesn't credit score, such as Ipswich Building Society (accept nwide direct business, but have restrictions on intermediary submissions), whom individually underwrite each case, so will consider factors you bring to the table in support of your app. Obv a decent deposit will help your cause no end too !!

Hope this helps .... good luck

Holly

ques82

Thanks for your reply and advice – ACG and Holly hobby.
My hubby’s contract is with and employment agency and is renewed every 6 months on rolling contract basis. He started this job around September 2007 and works as a fund accountant for the bank’s asset management division.
Obviously by now we were thinking he would be perm there but there are no signs of this happening.
Certainly, I’ll speak with a broker to get an idea of what can happen. Do you think this means we should not yet look at any houses? I mean we’ve been looking for decent house since long and visited only one which interested us. Is it okay to look for a house without a mortgage approved or agreed in principal?

holly_hobby

My advice would to get an AIP or DIP from a lender, before you start looking at properties, and possibly falling in love with one that may be completely outside of your price bracket, or indeed you can't get a mge for at all, given the employement status you both hold.

My first step would be to go and seek a Mge Broker - take all your details re income, contract renewals, print off of your credit record, etc, etc ..... if he thinks its possible, he will have a chat with his likely lender(s) either directly or via their development rep, to try and find a home for you .... but it may not be easy.

Although he is agency staff - his occupation is as a white collar Professional as oppossed to general staff i.e warehouse operatives (no offence to warehouse staff of course !), so that is a positive. However it may of course be seen that his occupation is quite niche, so if the agency work dried up with the current Client, he may struggle to find another suitable position - so you may want to think of alternative roles he could hold if the UWs raise this as a possible issue, which the may not but forearmed and all that !!

Anyway a visit with a broker is your next step ...

Hope this helps

Holly