Mortgage Application Permenant or Temp Work Contract

reneejames10

My husband and I are first time buyers. A promotion has come up at my work it would be a £5k pay rise and a much needed career boost if I got it. The downside is it would mean going from a permanent contract to a temporary one (12 months).

I've been with the company since 2013. What sort of employment proof will a lender want to see? Will they as question about my contract?

We're hoping to get the ball rolling with mortgage applications around May. The deadline for this promotion is end of Feb. I'm unsure about going for it if it will negatively Impact us getting a mortgage!

Hope you can help!

kingstreet

Your first twelve month fixed term contract is not the best time to apply for a mortgage.

Lenders tend to look for a set period left to run; the contract having been renewed at least once or a combination of those things.

Speak to an independent broker and see what your options might be, based on your overall application details.

JJB223

Hi, I am in a similar position, though with a difference,

I have 15 years with my current employer and recently was promoted in a new post with a 9k pay rise. The post is on a temporary bases as there is due to be a restructure in 6 months, at which point the post will be made permanent. My contact States the post is tempory with me returning to my substantive post at the end of the period, unless it's been made perminant before then.

How will this be viewed, should I just base affordability on my substantive post salary? It is 99.9% certain that this will be May perminate in the next few months.

Thrugelmir

JJB223 wrote: »

My contact States the post is tempory with me returning to my substantive post at the end of the period, unless it's been made perminant before then.

Then the 99.9% certainty you quote is subjective. Perhaps better to wait for the position to be made permanent.

JJB223

Thanks, we have calculated affordability on my substantive salery anyway, so I guess in affect I am in perminant employment but seconded to I higher grade, so apply based on my substantive perm contract details