2.5 year fixed contract of employment, will I stand a chance?

GoldenShadow

I start a Grad Scheme in Sept which is 2.5 years long. When I search the forum, most info relating to fixed contract jobs are careers which seem to always rely on contract work, ie. it's not unusual in that field.

I can't get confirmation of a second contract after my 2.5 years because 1) it isn't really contract work and 2) it's so far into the future to be offered something when workplace situations can change quickly.

I know some will think I'm nuts wanting a mortgage when I have 2.5 years then technically nothing, but the organisation support you in finding work with them after and some people so leave early to start permanent roles. I just want to try and get my head around whether it will be at all possible or not to get a mortgage during the 2.5 years. My boyfriend is a permanent employee on 30K and I will earn just over 22K per year.

I don't want to be stuck at 'home' for another 2.5 years

Thrugelmir

Mortgages are long term commitments i.e. 25 years. So while living at home is unappealing. Think matters through before jumping. Settling into your job and saving would be a start. The larger deposit you can amass the easier the future will be.

GoldenShadow

Thrugelmir wrote: »

Mortgages are long term commitments i.e. 25 years. So while living at home is unappealing. Think matters through before jumping. Settling into your job and saving would be a start. The larger deposit you can amass the easier the future will be.

Is it likely to be impossible whilst on this scheme, though?

I was offered another scheme which made me a permanent employee from the start and I feel as though I've inadvertently shot myself in the foot going for this one

GolfFoxtrot

GoldenShadow wrote: »

Is it likely to be impossible whilst on this scheme, though?

I was offered another scheme which made me a permanent employee from the start and I feel as though I've inadvertently shot myself in the foot going for this one

Two grads at my work both on fixed term 2 year contracts managed to get a mortgage this year so don't lose all hope

Zoology_Dragon

There are plenty of lenders who will give mortgages to people on fixed term contracts, it will help that your partner has a permanent job too. You will need to have been in your job for probably six months though. Speak to a broker to save you applying to lenders that would rule you out.

Mortgage_Mark_2

Contact a contractor specialist broker and discuss with them, they will be able to offer reassurance or otherwise specific to your situation. There are many, many factors in contract work that can effect where to approach and how much you can borrow, and a broker will do the leg work for you.

Nick_C

My partner is a University Lecturer. He has been working on short term contracts - between 8 weeks and 30 weeks - for the last 8 years. We got a mortgage from Santander, but we did have to jump through a lot of hoops and the underwriter seemed to ask the most stupid questions.

Mortgage_Mark_2

Nick_C wrote: »

My partner is a University Lecturer. He has been working on short term contracts - between 8 weeks and 30 weeks - for the last 8 years. We got a mortgage from Santander, but we did have to jump through a lot of hoops and the underwriter seemed to ask the most stupid questions.

You did well to get it through - Santander are an utter, utter nightmare for contractors.

Nick_C

Mortgage_Mark wrote: »

You did well to get it through - Santander are an utter, utter nightmare for contractors.

The mortgage advisor in our local branch was brilliant. She could see that we could clearly afford the mortgage, and I think she fought hard with the underwriting team on our behalf.

The underwriting team made some odd decisions though, ignoring my partner's regular pattern of income - he supplied P60s from his three employers for each of the last three years - and assessed his income as being his current (May to August) two day a week contract!

They also made a weird assessment of my pension. My monthly pension payslip shows a basic amount, which is the amount I retired on 2 years ago, and the cost of living increases as an addition. They ignored the cost of living increases, and assessed me on an income figure that was two years out of date.

The whole experience was very frustrating, but we stuck with Santander as (1) they will give me a mortgage to age 75 and (2) they have a good deal on a lifetime tracker at base rate + 2%, with no penalties for early redemption.