Fixed term contract going to a permanent contract

lauren_hb

Hi,
My boyfriend has been on a 12 month fixed term contract which is due to be converted to a permanent contract at the end of February/beginning of March 2017. Will mortgage lenders look at this as they would a new job and perhaps want him to be in employment for 3/6 months? He's not starting on a new probationary period or anything.
We're both first time buyers. I'm in employment and on a permenant contract have been with them for 6 years. We have a good deposit of 45k which we've saved hard for. No debts or credit cards.
Any advice appreciated!
Thank you.

AnotherJoe

See a broker.
No credit cards? So that makes your credit history harder to assess, and means you arent taking a advantage of the 6 weeks interest free loan and payment protection and possibly other goodies such as airmiles, or various sorts of points.

lauren_hb

I've never seen a need to get a credit card in order to get such goodies as you put it.
We've looked at our credit history on the various sites you can use and both of us have scored well.

anniecave

I would say for mortgage application purposes that once he has been converted to permanent then the data on the application would appear the same as if the job had always been permanent. That's based on my recent mortgage application anyway.

csgohan4

Get a credit card and pay in full to get some history. I only got a credit card for this purpose, when I started uni.

lauren_hb

I appreciate what you're saying and understand their use in showing you can keep up to payments however all advice I've read recommends not to apply for credit such as credit cards, loans etc shortly before applying for a mortgage.

csgohan4

lauren_hb wrote: »

I appreciate what you're saying and understand their use in showing you can keep up to payments however all advice I've read recommends not to apply for credit such as credit cards, loans etc shortly before applying for a mortgage.

Yes and no generally, but with your limited credit history it might make things difficult. Consult a broker for more options

Thrugelmir

Moving from a fixed term contract onto a permanent basis is merely a continuation of the same job. Should be treated as such when you apply.

If you don't need a credit card there's absolutely no requirement to have one. As doesn't actually prove anything at all. The fact that you've saved the £45k deposit is commendable. Worth far more brownie points in the eyes of the lender. As demonstrates your ability to manage your personal finances well.

lauren_hb

Thank you. I was always taught by my parents, rightly or wrongly, to live within my means hence not to get a credit card!
Therefore the only payments on both our credit reports is for mobile phone contracts which have all been paid on time.
Just need to decide now whether to use a broker or go it alone.