NHS fixed term temporary contract- likely to be a problem?

Goldfish52

I'm on maternity leave from the NHS at the moment so got a letter from HR to confirm my salary and date of return to work to go with my payslips (last 3 months are SMP only) to send to HSBC underwriters to support our mortgage application. Trouble is that the letter they have sent me says that I'm on a fixed term temporary contract. (Which I am, all junior doctors are.) I've been working for the same Trust for almost 4 years now and contract has been renewed periodically as it expires without any problem. Everything else is absolutely in order and I bank with them, so they have a record of my previous salary etc.

Is this likely to be a problem? I'm a little concerned as I know that HSBC can be sticky.

amnblog

We handle these kinds or scenarios all day without a problem - never with HSBC though as they do not distribute via brokers.

We do regularly have Doctors come back to us several weeks after flirting with HSBC.

As to your case, each is on it's own merit so it is impossible to guess what HSBC will decide.

pinkteapot

I was on a two-year contract at a university when we applied for our mortgage a few months ago. Similar to you - contracts are usually renewed here.

HSBC wouldn't consider my salary, so offered us an amount based on OH's salary only, which wasn't enough. We've both banked with them for about 15 years and are Premier customers. We've overpaid our current mortgage with them by £60k in three years. Still, underwriter says no to non-permanent jobs. Our HSBC premier advisor tried talking to the underwriters on our behalf, but they said they simply won't consider non-permanent contracts.

We used a broker who got our mortgage through Santander. They also wouldn't consider my salary, but would lend us enough based on OH's alone.

There are some lenders that will consider contracts, with varying rules about how long has to be left to run on the contract.

You could ring round lenders yourself to find out who'll consider you but we decided just to use a broker to do the leg-work instead.

amnblog

pinkteapot wrote: »

I was on a two-year contract at a university when we applied for our mortgage a few months ago. Similar to you - contracts are usually renewed here.

HSBC wouldn't consider my salary, so offered us an amount based on OH's salary only, which wasn't enough. We've both banked with them for about 15 years and are Premier customers. We've overpaid our current mortgage with them by £60k in three years. Still, underwriter says no to non-permanent jobs. Our HSBC premier advisor tried talking to the underwriters on our behalf, but they said they simply won't consider non-permanent contracts.

We used a broker who got our mortgage through Santander. They also wouldn't consider my salary, but would lend us enough based on OH's alone.

There are some lenders that will consider contracts, with varying rules about how long has to be left to run on the contract.

You could ring round lenders yourself to find out who'll consider you but we decided just to use a broker to do the leg-work instead.

Doctors rotation contracts are a particular and unusual issue for lenders Pink.

They often go direct to lenders and often have issues as a result.

Paully232000

I am also on a two yr fixed term contract and recently obtained a mortgage through a broker. Is with Accord as a mortgage company.

They stipulated the contract had to have either one year of contract gone on this or similar roles, or one year left to run. Never asked about likelihood of it being extended (although it should be). This is a joint post between a University and NHS.

Typhoon2000

Scottish Widows have traditionally been the one Doctors go to as they understand NHS jobs. They also understand your salary goes up on every year by by published amounts so will also lend rather more.

Goldfish52

Thanks for all the replies. I forgot to mention that interestingly we already have a HSBC mortgage, which we took out 18 months ago. At that time I just submitted 3 payslips and they didn't question it. We're keen to port this mortgage as it is at their very attractive BOE+1.49% rate.
Maybe I had better get a new letter that doesn't mention the type of contract....

Goldfish52

Oh, and also, I wonder if length of service with the same trust makes a difference as I thought you have to have to option of a permanent contract after 3 years under EU law. Does anyone know?

Thrugelmir

By default after 4 years service. A contractor assumes all the rights of a permanent employee.

Goldfish52

Just to close this thread out, I got a call from the underwriter today to say she had approved our mortgage subject to survey. They only wanted a verbal confirmation that I was going back to work and on the same salary. Such a relief!
Thank you for all the helpful advice.