Mortgage with a fixed term contract

Zither

Hi All,

Quick question if you don't mind?

I was recently successful at interview for a 2 year fixed term job, which I'm excited about.

I gave my current employer (for whom I've worked for 10 years) notice of resignation two weeks ago, with my notice period running until the end of August 2016, when my new job starts.

However, I've just seen a house that I'm interested in buying and would need a mortgage to do so.

I've read a little about lending criteria for workers on fixed term contracts. It looks as though there are a selection of mortgage products available for fixed term contract employees but banks prefer to see a history of contracting (I only have a history of permanent employment). So my question is:

Am I likely to be able to get a mortgage in my current position?

Thanks,

Z

Daniel_Sparkes

Hi Zither,

You should find they'll be a selection of lenders who would consider your case on the basis you'll have a contract for a 2 year period. The fact you have a continuous employment history certainly helps also.

I would suggest speaking with a mortgage adviser.

Daniel

MortgageMamma

If the contract work is the same as the permanent employment you have been doing then there should be no issues but not every lender will consider contractors. The fact it is a 2 year contract is a good thing, the fact you haven't started it yet could be a hurdle, but perhaps not unachievable.


There are a handful of lenders who may consider this, but you will certainly need professional advice. Speak to a whole of market mortgage broker, get the viability of your purchase plans checked, find out how much you can borrow on your contracted pay and take it from there.


MM

Zither

Hi Daniel, MortgageMamma,

Thanks for both of your replies, it sounds like my situation might not be as dire as I originally thought.

MM - yes, it's the fact that I haven't started yet which does concern me most though. From a personal perspective I'm confident that everything is affordable (I wouldn't be stretching myself) but appreciate that the bank sees the situation rather than the individual.

Have either of you, or anyone, seen mortgage approvals for other people in my situation?

Thanks alot,

Z

MortgageMamma

Zither wrote: »

Hi Daniel, MortgageMamma,

Thanks for both of your replies, it sounds like my situation might not be as dire as I originally thought.

MM - yes, it's the fact that I haven't started yet which does concern me most though. From a personal perspective I'm confident that everything is affordable (I wouldn't be stretching myself) but appreciate that the bank sees the situation rather than the individual.

Have either of you, or anyone, seen mortgage approvals for other people in my situation?

Thanks alot,

Z

I work with contractors a lot, but they mostly have a history of contracting or the same profession at the very least. The best thing to do is speak to a broker and get the broker to check lender criteria and actually discuss your case with a lender to get the OK before attempting the transaction. There could be other aspects of your circumstances that don't fit criteria etc so without doing a full fact find and research nobody on here could say for definite that you would 100% get a mortgage.

Zither

Thanks MM,

Wise words - just also to get some general experience from experts in the field too. FTB so not totally comfortable with the industry.

There seems a lot of mortgage brokers around locally where I live (Newcastle) - are there any recommended resources for selecting a broker available?

Thanks!

Z

MortgageMamma

Hi Zither, most brokers operate over the phone but if you want a local one you could try these websites


www.unbiased.co.uk
www.vouchedfor.co.uk
www.cherryfind.co.uk




Hope this helps, your doing the right thing getting proper advice.


Good luck


MM

Daniel_Sparkes

I echo MM's comments above.

I've experienced a case reasonably similar to your own not so long ago and we had success placing their respective case, that said all cases are different and yours would need to be assessed as such.

Good luck in whatever you decide to do.

evansc1

Similar situation here with my wife.

Similar role previously (permanent role), first time on fixed term contract with 9 months to go.

Only lender I could personally find (that was without using a broker) was Lloyds bank. They aren't the best of rates but I'm currently with them with a Club Lloyds account so get discounted rates.

That's not me saying you won't get any luck else where - just giving my experience