Will a fixed term contract affect the mortgage I can get?

HVWW

My partner and I are first time buyers, we both earn an adequate salary for the house prices we are interested in and have a 10% deposit. However.... my partner works on a fixed term contract. He has worked at the same company for a couple of years now but the company he works for only allows the casual staff to work 9 consecutive months before ensuring they have at least two months break before the contract will be renewed. Renewal of the contract is very likely, however, the company has informed my partner that if a bank were to contact them regarding a mortgage, they would inform them that they are only employed for 9 months at a time. Also, the contract is for 4 days a week but he has always worked 5 days, if not 6. We visited an estate agents mortgage advisor who felt we would be unable to secure a mortgage with this unusual employment situation. However, I have been informed by another mortgage advisor that if I look else where I may be more successful. Any advice would be greatly appreciated.

Thrugelmir

You'll struggle to obtain a mortgage. Doesn't sound like a Company to rely on in the longer term. Suggest that your partners seeks a better employer. .

princeofpounds

It's unlikely. Someone I know had almost exactly this problem, got turned down.

giddypenguin

Are you sure you want to take on a long term financial commitment, such as a mortgage while in this situation? Yes, it's all been fine in the past, and will probably be fine for the foreseeable future - but your partner is in a very vulnerable position. Who's to say one cycle, the contract won't get renewed, and he struggles for a few months to find anything else - how will you pay the mortgage then?

HappyMJ

Could you get a mortgage based on your own salary? Many people have partners that work in casual part time jobs but the primary earner earns enough to get a mortgage without the need to take that extra income into account.

Paully232000

We obtained a mortgage with one of us on a fixed term contract and the other full time and in same job for 7 years. good rate as well.
The mortgage company stipulated that the FTC had to be either one year in same job/similar field or one year or more to go on the contract. This was however last year before the rules changed.

Zoology_Dragon

We're just waiting for our mortgage offer, husband is about to start a permanent job, I'm on a contract. It hasn't been a problem for our lender, however, we did intentionally choose a property that we could afford on just his salary (both in terms of mortgage payments and in terms of affordability as it's only 3.3x just my husband's salary), we also chose a lender who is less rigid about fixed term contracts. I wouldn't like to say how easy it would be though if we'd asked to borrow at the limit of affordability on both our salaries. We also have a 15% deposit which I think helps.

kingstreet

If a fixed term contract has at least six months to run; or been renewed at least once; or the applicant has a career history in that line over two years there should be options available to them.

A decent independent broker should be able to deal with this. An inexperienced estate agency advisor may not be the best source of help for such cases.

strawberries1

Kingstreet, is London and Country an independent broker? They don't charge fees so I assume they aren't. Please correct me if I'm wrong.

kingstreet wrote: »

If a fixed term contract has at least six months to run; or been renewed at least once; or the applicant has a career history in that line over two years there should be options available to them.

A decent independent broker should be able to deal with this. An inexperienced estate agency advisor may not be the best source of help for such cases.

booksurr

strawberries1 wrote: »

Kingstreet, is London and Country an independent broker? They don't charge fees so I assume they aren't. Please correct me if I'm wrong.

have you read their disclosure document as required by FCA rules?
http://www.lcplc.co.uk/about-us/keyfacts-advised/

there are only 3 options....