University researcher on contract

drdpj

Noctu wrote: »

Hi,
Yes as in a post-doc RA :-)
This is the issue I've been having - if I search for 'mortgages on fixed term contracts' I get loads of stuff about contracting, e.g. in IT as you mention! & not much specific to my situation, which surely must be more prevalent than solely in post-doc world...

I'm not a mortgage advisor, but I was once a post doc with a mortgage (when they were just throwing them around). Just a quick look at Halifax though and they say:

"Sub Contractors, Fixed/short term contracts and Agency workers
Applications will be considered from the above employment types if the customer has a current continuous employment of 12 months or more with 6 months of the contract remaining or the customer has 2 years continuous service in the same type of employment.

Evidence of their employment track record may be required.

Customers should be treated as self employed if they pay their own tax or sub contract to more than one company.
"

So, it's doable, but the criteria vary between lenders. As others have said, a good broker will be able to see you right - and take the stress out of the whole thing! Good luck

Mortgage_Mark_2

drdpj wrote: »

I'm not a mortgage advisor, but I was once a post doc with a mortgage (when they were just throwing them around). Just a quick look at Halifax though and they say:


So, it's doable, but the criteria vary between lenders. As others have said, a good broker will be able to see you right - and take the stress out of the whole thing! Good luck

...and the reason you need a contract specialist is because that doesn't tell the full picture. Halifax contractor criteria specifies a minimum income of £75k p.a. unless you work in IT.

Speak with a broker.

celyn90

Both OH and I had no problems with HSBC (just over two years ago) - he's an academic core facilities manager on a fixed term contract (his work is regarded as "academic related staff" - grade 8) and I was a post-doc at the time (also on a fixed term contract).

We had one year (OH) and three years (me) on our contracts at the time of application. We had to show the employment record with the University for OH (he'd had continual employment with the same university for five years before then - as a post doc in another lab, then running the mass spec suite on a series of rolling contracts).

I was straight out of PhD, so didn't have this - but it was fine because of the length of the fixed term.

I think most lenders are aware that these types of contracts are the norm in the sector.

Paully232000

I have just got a mortgage last october on a fixed term academic contract. Was with accord, who some on here do not like, but gave a good deal on a 75% LTV, 2.89% 5 yr fix.
Stipulation was that had to have either twelve months already run or twelve months to go on this current contract or other contracts of similar nature.
We went to a mortgage broker also.

aha77

Hi again,

Please ignore Mortgage Mark. You do not need a contract specialist broker and there is no minimum £75k income from Halifax for people on fixed term contracts. There is a difference between contractors, who may operate as a limited company etc and people on fixed term contracts who are PAYE etc. A quick look on the Nationwide website at the criteria explains this. The same goes for Natwest, Halifax, CO-OP etc. Take a couple of hours to ring the individual lenders directly and ask, but I assure you, you do not need a specialist broker or indeed mortgage provider. It's a shame that professionals apparently don't know their own industry.

Mortgage_Mark_2

aha77 wrote: »

Hi again,

Please ignore Mortgage Mark. You do not need a contract specialist broker and there is no minimum £75k income from Halifax for people on fixed term contracts. There is a difference between contractors, who may operate as a limited company etc and people on fixed term contracts who are PAYE etc. A quick look on the Nationwide website at the criteria explains this. The same goes for Natwest, Halifax, CO-OP etc. Take a couple of hours to ring the individual lenders directly and ask, but I assure you, you do not need a specialist broker or indeed mortgage provider. It's a shame that professionals apparently don't know their own industry.

:rotfl:

Good luck OP, but please take note of one part of this post - do some research rather than listening to this clown.

Paully232000

I am not sure who is right, or wrong, i can only say from my experience of mortgages in a similar situation i neither needed to earn over £75K, or go to a specialist contractor broker to get my mortgage.

I earn much less than £75K and went to a regular general mortgage broker.

aha77

Like most of the people on this thread I am also a university researcher and have recently secured a mortgage on a fixed term contract - read my original post Marky Mark. What I did was a bit of research about mortgages and the various options available. I used a combination of the telephone and a recent innovation called the internet - the research thingy comes quite naturally to me once I put my lab coat on. Ended up going direct with Co-op as a far better deal than the ones a broker came up with. Obviously as a mortgage broker you are going to advocate using a broker, it's how you earn a living. However, you do not know what you are talking about on this particular issue and that is quite worrying. How many academic researchers have you found mortgages for? None I'd imagine.

Incidentally, I'd rather be a clown than incompetent at my chosen profession.

Paully232000

I think this is where the £75K confusion comes from, and also halifaxs criteria for the OPs situation:

http://www.halifax-intermediaries.co.uk/criteria/mortgage/default.aspx

1. Sub Contractors, Fixed/short term contracts and Agency workers

Applications will be considered from the above employment types if the customer has a current continuous employment of 12 months or more with 6 months of the contract remaining or the customer has 2 years continuous service in the same type of employment.

Evidence of their employment track record may be required.

Customers should be treated as self employed if they pay their own tax or sub contract to more than one company.

2. IT and other contractors

For IT contractors on any income and other contractors whose income is more than £500 per day or £75,000 per annum: whether employed or self employed, we accept the gross value of the contract as evidence of income. All applicants must have a current continuous employment of 12 months or more with 6 months of the contract remaining or 2 years continuous service in the same type of employment.

aha77

Paully232000 wrote: »

I think this is where the £75K confusion comes from, and also halifaxs criteria for the OPs situation:

http://www.halifax-intermediaries.co.uk/criteria/mortgage/default.aspx

1. Sub Contractors, Fixed/short term contracts and Agency workers

Applications will be considered from the above employment types if the customer has a current continuous employment of 12 months or more with 6 months of the contract remaining or the customer has 2 years continuous service in the same type of employment.

Evidence of their employment track record may be required.

Customers should be treated as self employed if they pay their own tax or sub contract to more than one company.

2. IT and other contractors

For IT contractors on any income and other contractors whose income is more than £500 per day or £75,000 per annum: whether employed or self employed, we accept the gross value of the contract as evidence of income. All applicants must have a current continuous employment of 12 months or more with 6 months of the contract remaining or 2 years continuous service in the same type of employment.

That Mark is what you call doing a bit of research. Before you criticise people do your homework first otherwise you can look a bit stupid. Unfortunately I don't have a little clown face to add to the end of my post, so I will just say Hahahahahahaha - fool.