I'm a Mortgage Misfit

_Betty

Hello. I'm a newbie to these forums and decided to make a new thread as I cannot seem to find another one (on this forum or online in general) that accurately reflects my situation.

My partner and I are looking to buy our first home very soon, we have a 15% deposit saved for the house we are looking to buy and affordability from our wages is not an issue. My partner is in permanent employment and we don't have any issues with his part of the application.

I, however, have been called a 'mortgage misfit' as I fit between the 2 sets of general lending criteria for individuals on fixed-term contracts.

The criteria for most banks are:
"Applications will be considered on [fixed-term] 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."

To explain my situation, I am a 2014 graduate who has been in my current role since October 2014. I currently work in a training department doing administration and facilitation work within a higher education institute. My contract for this role was originally for 12 months until October 2015, however in July 2015, due to hard work and impressing my manager, I managed to get a contract extension from that time of 12 months, making my end date July 2016 (the best she could do at the time).

Throughout my entire time working in this role, my manager has always expressed the wish to keep me on permanent but due to issues within the sector at the moment and with other issues within the institute, this is not something that ever looked likely. As I am not an individual to be passive, I applied for other jobs when I realised this and managed to score myself a new role within a different company (privately owned) starting from the end of June 2016.

This would be on a graduate scheme working in the HR department. My issues regarding a mortgage arise here because my new contract states that although they have every intention of keeping me as a permanent member of staff, because of the nature of the role (being on a graduate scheme), they have put an end date in as being March 2018 (should further employment not be appropriate or something of the like).

This is causing massive frustration as the banks are not seeing this as I having secured a really good position with lots of opportunities, they are just seeing this end date as being a huge risk even though it's 20 months away!

We have been to a high street bank and spoke with a mortgage advisor, who has started us on an AIP application, and having passed the credit check, passed our situation on to the business advisors to make the final decision. This mortgage advisor, his boss, and his boss's boss, all support our application, but I am worried that the "computer says no" approach is going to win over common sense.

Both my partner and I are very sensible with money, and have no negative credit implications. The only thing holding back our application is my employment.

As I am being kicked out of my rented place in 2 months time and no-one apparently knows how to deal with our unique situation, this is causing major worry and stress and I was wondering if anyone else had been through something similar?

Thrugelmir

_Betty wrote: »

My issues regarding a mortgage arise here because my new contract states that although they have every intention of keeping me as a permanent member of staff, because of the nature of the role (being on a graduate scheme), they have put an end date in as being March 2018 (should further employment not be appropriate or something of the like).

This is causing massive frustration as the banks are not seeing this as I having secured a really good position with lots of opportunities, they are just seeing this end date as being a huge risk even though it's 20 months away!

(

Lenders do not have access to crystal balls. Decisions therefore have to based on facts not speculation. Lending criteria is set as a broad policy. Your individual circumstances either fit the criteria or they don't. There's no micro management of the application.

Debtslayer

I think you would have been better off seeking the help of an Independant mortgage broker than applying yourselves.
You won't be unique, they will have dealt with cases like yours before and know which lenders to approach

HappyMJ

_Betty wrote: »

Hello. I'm a newbie to these forums and decided to make a new thread as I cannot seem to find another one (on this forum or online in general) that accurately reflects my situation.

My partner and I are looking to buy our first home very soon, we have a 15% deposit saved for the house we are looking to buy and affordability from our wages is not an issue. My partner is in permanent employment and we don't have any issues with his part of the application.

I, however, have been called a 'mortgage misfit' as I fit between the 2 sets of general lending criteria for individuals on fixed-term contracts.

The criteria for most banks are:
"Applications will be considered on [fixed-term] 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."

To explain my situation, I am a 2014 graduate who has been in my current role since October 2014. I currently work in a training department doing administration and facilitation work within a higher education institute. My contract for this role was originally for 12 months until October 2015, however in July 2015, due to hard work and impressing my manager, I managed to get a contract extension from that time of 12 months, making my end date July 2016 (the best she could do at the time).

Throughout my entire time working in this role, my manager has always expressed the wish to keep me on permanent but due to issues within the sector at the moment and with other issues within the institute, this is not something that ever looked likely. As I am not an individual to be passive, I applied for other jobs when I realised this and managed to score myself a new role within a different company (privately owned) starting from the end of June 2016.

This would be on a graduate scheme working in the HR department. My issues regarding a mortgage arise here because my new contract states that although they have every intention of keeping me as a permanent member of staff, because of the nature of the role (being on a graduate scheme), they have put an end date in as being March 2018 (should further employment not be appropriate or something of the like).

This is causing massive frustration as the banks are not seeing this as I having secured a really good position with lots of opportunities, they are just seeing this end date as being a huge risk even though it's 20 months away!

We have been to a high street bank and spoke with a mortgage advisor, who has started us on an AIP application, and having passed the credit check, passed our situation on to the business advisors to make the final decision. This mortgage advisor, his boss, and his boss's boss, all support our application, but I am worried that the "computer says no" approach is going to win over common sense.

Both my partner and I are very sensible with money, and have no negative credit implications. The only thing holding back our application is my employment.

As I am being kicked out of my rented place in 2 months time and no-one apparently knows how to deal with our unique situation, this is causing major worry and stress and I was wondering if anyone else had been through something similar?

Your circumstances are hardly unique.

You have a job which you've been in for at least 12 months and the job is expected to last for at least another 6 months. You've got a future contract sorted starting when you might be moving (July 2016). I can't see any real issues with your employment.

If it's causing major worry and stress then maybe renting a place for another year may be an option.

bspm

_Betty wrote: »

Hello. I'm a newbie to these forums and decided to make a new thread as I cannot seem to find another one (on this forum or online in general) that accurately reflects my situation.

My partner and I are looking to buy our first home very soon, we have a 15% deposit saved for the house we are looking to buy and affordability from our wages is not an issue. My partner is in permanent employment and we don't have any issues with his part of the application.

I, however, have been called a 'mortgage misfit' as I fit between the 2 sets of general lending criteria for individuals on fixed-term contracts.

The criteria for most banks are:
"Applications will be considered on [fixed-term] 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."

To explain my situation, I am a 2014 graduate who has been in my current role since October 2014. I currently work in a training department doing administration and facilitation work within a higher education institute. My contract for this role was originally for 12 months until October 2015, however in July 2015, due to hard work and impressing my manager, I managed to get a contract extension from that time of 12 months, making my end date July 2016 (the best she could do at the time).

Throughout my entire time working in this role, my manager has always expressed the wish to keep me on permanent but due to issues within the sector at the moment and with other issues within the institute, this is not something that ever looked likely. As I am not an individual to be passive, I applied for other jobs when I realised this and managed to score myself a new role within a different company (privately owned) starting from the end of June 2016.

This would be on a graduate scheme working in the HR department. My issues regarding a mortgage arise here because my new contract states that although they have every intention of keeping me as a permanent member of staff, because of the nature of the role (being on a graduate scheme), they have put an end date in as being March 2018 (should further employment not be appropriate or something of the like).

This is causing massive frustration as the banks are not seeing this as I having secured a really good position with lots of opportunities, they are just seeing this end date as being a huge risk even though it's 20 months away!

We have been to a high street bank and spoke with a mortgage advisor, who has started us on an AIP application, and having passed the credit check, passed our situation on to the business advisors to make the final decision. This mortgage advisor, his boss, and his boss's boss, all support our application, but I am worried that the "computer says no" approach is going to win over common sense.

Both my partner and I are very sensible with money, and have no negative credit implications. The only thing holding back our application is my employment.

As I am being kicked out of my rented place in 2 months time and no-one apparently knows how to deal with our unique situation, this is causing major worry and stress and I was wondering if anyone else had been through something similar?

I have a little experience of this if it helps.

We sold our house in Fenruary 2013 to one couple who in turn sold their property to another couple the same month who had a decision in principle for their mortgage.
It seemed a relatively easy chain (is there such a thing) we were buying an empty property so a small chain of three.

All went well until the end of May 2013 when the third couple (last in chain) were refused a mortgage due to one of them being on a twelve month rolling contract within the NHS, even though they had worked for the NHS for five years the agenda at the time was to only give twelve month rolling contracts.

They had to approach several other banks/building societies and eventually one of them lent them the funds for the purchase. It did hold up the sale for many months (we eventually moved in December 2013) but there are banks/building societies who will lend in these circumstances. I believe they used a Financial Adviser in the end (I personally don't like them but each to their own to suit their needs)

Good luck.

MortgageMamma

Mortgage brokers deal with this kind of thing regularly, some even specialise in contract work. There are lenders who will entertain your situation. Its not as uncommon as you think. Speak to a whole of market mortgage broker, going straight to the bank is time consuming and stressful - as you've just found out!