Remortgaging and contract work

piccalilli82

I have an interview for a job I think would be a really great opportunity and be very good career-wise but I have concerns about how it might impact my remortgage prospects at the end of my current term.

I am currently in a permanent position where I have been for 12 years (since starting work). The potential new job is a small increase salary-wise but would only be a 2-year contract with uncertain status beyond that time.

I bought my first flat 3 years ago with a 5-year fixed term mortgage. If I got this job I would be at the end of the 5 year term with only a few months left on my contract. My LTV has changed significantly since I bought as I've done an extensive refurb so the mortgages I could get now are much better than the fix I'm on (although not worth paying the large penalty to exit and remortgage now).

Does anyone have an idea of my prospects of remortgaging when on a short-term contract? I suppose the fall-back is the lender (Santander's) standard variable rate but obviously this would be a pretty bad deal.

Neutrinno

piccalilli82 wrote: »

I have an interview for a job I think would be a really great opportunity and be very good career-wise but I have concerns about how it might impact my remortgage prospects at the end of my current term.

I am currently in a permanent position where I have been for 12 years (since starting work). The potential new job is a small increase salary-wise but would only be a 2-year contract with uncertain status beyond that time.

I bought my first flat 3 years ago with a 5-year fixed term mortgage. If I got this job I would be at the end of the 5 year term with only a few months left on my contract. My LTV has changed significantly since I bought as I've done an extensive refurb so the mortgages I could get now are much better than the fix I'm on (although not worth paying the large penalty to exit and remortgage now).

Does anyone have an idea of my prospects of remortgaging when on a short-term contract? I suppose the fall-back is the lender (Santander's) standard variable rate but obviously this would be a pretty bad deal.

If you are staying with your current lender this would make no difference in getting a new rate, they would not require any updates on your income or employment status unless you are looking for a further advance. If you are hoping to change to a new lender completely then yes it may cause an issue, especially if you have no history of contract work, but there are lenders who may consider you.

amnblog

Rule #1


Do not make decisions about your career based on likelihood of getting a mortgage.


You can bet as soon as you have decided based on mortgage prospects the mortgage world will change anyway.