First Time Buyer - Fixed Term Contract

karasdfghjkl

Hi All, I was wondering if any of you could give us some advice/assurance:

My partner and I are looking at buying our first home (a new build between £160,000-£170,000 - currently unsure between two styles). We have approximately 9.5k saved in two ISAs and a regular savings account and plan to use the HTB loan.

Our current situation:
- I am 22, with a permanent job on 23k (been there 11 months since leaving University last year)
- My partner is 25 on 17.5k BUT he is on a temporary contract. We started a year ago on a contract for 3 months, then it was rolled on until December 2017, then rolled on until June 2018 and now December 2018. Once he has been there 2 years, he gets made permanent but I still feel unsure. All the mortgage advisors we've spoken to have said wait until he has been there a year.. which he has now. Does everyone think this is ok?
- We both have good credit records and have never missed any payments on phone, car finance or credit cards (which is our only debt).

Do you think we're in a better position to get our mortgage now he has been in his job for a year? Thank you!

amnblog

Yes. A year should be OK.

GoingOn30

You'll not have much of a deposit left by the time you've paid survey and solicitors fees. How much are you managing to put in savings each month?
Contract shouldn't be too much of a barrier.

karasdfghjkl

Brill! thank you for your reply, he is convinced we won't be eligible so glad to know he's just a worrier.

Will it have to be a year to the date? We can't remember exactly what date he started at his current job but know it was April 2018. Thank you!

karasdfghjkl

GoingOn30 wrote: »

You'll not have much of a deposit left by the time you've paid survey and solicitors fees. How much are you managing to put in savings each month?
Contract shouldn't be too much of a barrier.

We have 9.5k saved solely for deposit sorry (so over the 5%). We have £1000 saved currently for fees, we are saving £400 a month each towards the house at the moment but could (and probably will) up with as completion comes closer and it become a reality. Both of the houses we like would be bought off plan so we're looking 6 months+ before completion anyway

Thrugelmir

What's your actual exposure to debt?

Companies use contractors for a reason. Before taking on a long term financial committment personally I would want job security. At least in the form of a permanent contract.

karasdfghjkl

We currently have - 1 car finance for 249 a month (2 years remaining), a credit card which gets paid in full every month (approx £100 on at the moment) and my partner has a Very account with £200 on, which he overpass every month. So we have very little debt currently.

We definitely feel that both of us being on a permanent contract would be more secure, but unfortunately due to his industry, fixed term contracts are common but he!!!8217;s halfway to automatically being made permanent. We also have family members who run business so have the security that he!!!8217;d never be without employment, worst case scenario it just wouldn!!!8217;t be in the industry he wants to work in. But I do understand your concern Thurgelmir