Fixed term contract and mortgage application

Calleja

Hi all,

I'm a first time buyer currently looking at the various mortgages available to me. I have perfect credit history and close to 10% deposit. However, the fact that I'm in a fixed term contract at work is an issue.

Mortgage brokers are always asking me if I am in full time employment - which I am. I then volunteer the information that it is fixed term contract and that changes my eligibility (to varying degrees, depending on the provider).

Here is my question - do I need to volunteer this information? Googling documents required for the application process just tells me I need payslips for the last 3 months. If I don't tell them I'm on contract, will they find out during the application process?

I appreciate why contracts aren't ideal for mortgage providers, but I have very good job security and if my contract isn't renewed, I know I could get a permanant job very easily - I don't have to take contract work, I choose to. So this is very frustrating....

Thanks for any help!

Crashandburn

Just tell the truth! The applications are set in such a way to ask these questions and as long as you have a history of fixed contracts being renewed, then I cannot see any issues whatsoever. Your position is just as safe as any PAYE client applying for a mortgage.

It will be worthwhile just making sure that the lenders being selected are fixed contract friendly. Also worth talking to your own bank on the basis that they have a history of your income throughout the contracting.

You are right in saying that the lenders will only see payslips and bank statements with the income of it but by saying you are a full-time permanent employee, you have provided false information on a mortgage application