Fixed term contract ..possible mortgage?

TrulyMadly

Does anyone have any experience of a young professional....dentist in her training year,being successful in getting a mortgage approved if her first position is a 1 year fixed term contract.

I would be grateful for any advice

Thank you:)

ACG

Its not something I have done personally, but I have come across a few lenders who would probably look to take you on at decent enough rates.

brook2jack

No the ft1 contract is only a year, no one will lend on it. If going into general practice she will be self employed so will need at least three years accounts before she will be accepted for a mortgage.

If going into ft2 training as its a year contract again so no mortgage lender will lend again.

The IDH style employed contract may get a mortgage offer sooner than the three years but IDH is not a company many would recommend.

TrulyMadly

ACG wrote: »

Its not something I have done personally, but I have come across a few lenders who would probably look to take you on at decent enough rates.

Thank you for this:)

TrulyMadly

brook2jack wrote: »

No the ft1 contract is only a year, no one will lend on it. If going into general practice she will be self employed so will need at least three years accounts before she will be accepted for a mortgage.

If going into ft2 training as its a year contract again so no mortgage lender will lend again.

The IDH style employed contract may get a mortgage offer sooner than the three years but IDH is not a company many would recommend.

I thought this initially but I am aware of a friend of a friend whose daughter is going into teaching on an initial fixed term contract but who has managed to secure a mortgage. I didn't really want to pry and ask with which lender:o

brook2jack

The only FT1 or FT2 people I know of who have managed to buy a house has been on the basis of their partners income, certainly that has been the case in recent years.

The lenders are much more wary of lending to newly qualified dentists and the three year rule of accounts has been quite strictly enforced.

It also has to be said most ft1 and ft2 dentists struggle financially to start as paying off student loan , buying and running a car and paying off any student overdrafts make things quite tight to start off. Also they need to build up some savings for post grad qualifications and the difficulties of their first associate jobs.