Fixed term contract and a Mortgage

seabass90

Hi all,

I've been looking to get a mortgage for some time.

I have been working in my current line of work for 2 years. I am on a permanent contract. Unfortunately, my industry has been part privatised recently and I have recently discovered that, come February, I will be placed in the private part of my industry. This worries me greatly because of the unknown and the likelihood of my salary being slashed for the private company to save costs.

I have applied for the same job I have now, but in the public part of the organisation. To me this feels a lot safer and I will have a better pension (civil servant). If I get the job, because it's not February yet and the official privatisation hasn't happened, the public sector organisation will allow me to transfer my current pay, annual leave and continuity of service over to them.

The downside? The public sector job is fixed-term for 15 months. However my industry is notorious for making fixed-term permanent eventually (I was on a fixed-term contract with the same industry 18 months go and they made me permanent) and i'm sure I could get the company to explain this.

If I get the job and accept it, would I still be able to get a mortgage? I know it relies on other things- my credit rating is good and I will have about a 65% LTV (large deposit available). The frustrating thing is that I want this job because I'd feel more secure in the public sector (chances of redundancy/slashing of salaries extremely low due to increasing workload) than in the private sector, where there is a concern about reducing our pay. If i'm not able to get a mortgage myself on a fixed-term, could I participate in one of the schemes whereby one of my parents comes joint with me and then I could take them off once my job has been made permanent?

Thanks in advance.

Thrugelmir

seabass90 wrote: »

This worries me greatly because of the unknown and the likelihood of my salary being slashed for the private company to save costs.

The downside? The public sector job is fixed-term for 15 months. However my industry is notorious for making fixed-term permanent eventually (I was on a fixed-term contract with the same industry 18 months go and they made me permanent) and i'm sure I could get the company to explain this.

Many organisations are looking to save money by reducing costs. Much of the public sector is undergoing structural reform. There's no avoiding this as there's a huge budget deficit to be bridged at the macro level. At the micro level the public sector has to operate at commercially viable levels with corresponding levels of productivity. Therefore no one will give an undertaking that your job will become permanent.