Fixed Term Employment and Mortgage

sdc_13

Hello,

I'm hoping someone may be able to help with a query regarding fixed term contracts and mortgage eligibility criteria.

My partner and I are looking to complete a joint application as first time buyers. I am in the second month of a 12 month full time fixed term contract with my current employer (10 - 11 months remaining on contract), whilst my partner is employed full time on a permanent contract. This is my first time on a fixed term contract and the likelihood is that it will be renewed, but there is no written guarantee of such at this stage. I have been employed full time permanent in the same business sector over the past five years with no breaks.

We recently met with a mortgage broker / financial adviser who assessed our situation and affordability, and despite my concerns over likely acceptance with my fixed term contract, they advised us that obtaining a mortgage for the value we are seeking and with our status would not be a problem, and that he would come back to us with options available.

The broker has now advised us a week later, that he is experiencing difficultly, solely due to my fixed term contract and lenders requiring 1 - 2 years track record with fixed term contracts which I do not have, having come from a permanent position. The broker is still awaiting a response from other lenders; however, I sense this is looking bleak.

Could anyone point me in the direction of lenders with more accommodating criteria on fixed term contracts? There must be many people in this situation due to the number of fixed term contracts increasing. I can understand that lenders require track records of employment and perhaps naively thought that 5+ years experience in a permanent position in the same sector would help.

Any guidance would be much appreciated, particularly from other brokers and those who may have been in a similar situation recently. Thanks.

Zoology_Dragon

We're using the PO for the same reason (though I have always been on a contract), their turn around time is insane at the moment though - more than a month and counting.

Paully232000

We were also in the same position, albeit I was at the end of the first year of a 2 year FTC. We got a mortgage with little problems through a broker.
As far as i can remember the stipulation was that had to have been in the fixed term for one year or with 1 year or more still left to run, on this or other contracts in a similar area.

Was with accord (I think the other one we could have had was Halifax if i remember correctly), and on a good rate at the time of less than 3%, 5 yr fixed 75% LTV. Some have had a horrible time with accord as a provider prior to acceptance (or not as the case may be), but this is our second 5 yr fixed term and not many issues with the application process looking back on it with hindsight.