Fixed term contract and submitting full application. Nationwide

Noctu

The jist of this question was quite difficult to get into the title!

We're with Nationwide and want to borrow more for home improvements. I'm on a FTC, hubby is permanent.

Nationwide lending criteria state that for FTCs you need to have been in it for 1 year, or have at least 2 years remaining.

I started my post in Feb, 9 month contract. It will be renewed in Sept, adding another two years on.

Hopefully I can get the written contract from HR before then, some time in August, to say that I have an extra 2 years starting the following month.

So, daft question - once we do DiP and (hopefully) progress to full application for extra funds. It's likely that I will only have 2 years 1 week (or something) left on contract on submission date, and during processing, it will through the passage of time decrease to 1 year 11 months.

Will this be an issue? Or do they just go on what it was on the date of submission?

Hope someone can help.

Many thanks!

Daniel_Sparkes

Hi Noctu,

You've raised a very valid question. Once your new contract is issued, if this is for a 2 year period then as long as the application is made close to this date, say the following month, then the lender should take a realistic view on this and be satisfied with your circumstance. However, that said lenders / underwriters can decide otherwise, so although you shouldn't encounter an issue you just need to be aware there is no guarantee.

I would suggest speaking with a mortgage broker, as they'll be able to thoroughly assess your case prior to submitting it to a lender, and they can also package your case in the appropriate way to give you a potentially greater chance of success.

If you need guidance on who best to use just let me know.

Daniel

amnblog

Ask Nationwide. It sounds like it is outside of criteria so you can expect a 'no'.

Should you get a 'no', speak to a broker and arrange lending elsewhere.

BritishBibliophile

I tried to apply for a DIP with Nationwide 6 months in to a 2 year contract and got a flat "no" (partner has a permanent job), you may find you'll have to wait until February (i.e. the start of your original contract) and they'll just consider the renewel to be an extension.

We got a DIP from Halifax, who accept temporary contracts if you've had a permanent job in a similar role for at least 2 years (I think) before getting your contract. I also had an informal chat with an advisor at Natwest who said that they do accept people on temporary contracts, and basically would need to talk about it with me properly, but they didn't see 2 years as being a problem.

There is hope, good luck!

Noctu

Thanks everyone for your replies.