Mortgage on fixed term contract

nick1980

Hi. Welcome some advice please.

I am on a two year fixed term contract in an operational project manager role (not I.T related). It comes to an end in May 2020. At the same time, my BTL fixed term mortgage ends in March 2020 and I plan to convert it to a residential as I want to move in with my family. Are there any lenders that will still consider me given I will just have 2 months left on my current contract? My employer policy is that they only extend contracts a month before expiry. I have always been in employment and before this I was in a perm role.

My LTV will be 39%.

Thanks in advance.

ACG

We had something similar 2-3 months ago where a lady could only get 2 week extensions because there was nobody senior enough to sign off 6-12 month extensions in the company.

We managed to find a lender who would do it and at normal rates.

But you are probably going to struggle with 99% of lenders out there, I think this is probably one of those cases where you might need a broker.

[Deleted User]

Is this your first contract? If it hasnt been renewed in the past you might find it tricky

You could get a mortgage offer for your residential mortgage up to 6 months before you plan to use it. This would then be underwritten on the situation on the day of application so would have a longer period left.

More lenders would be happy with at least 6 months remaining especially when the contract was for more than 12 months to start with

Fixed term contracts are a minefield with a billion different versions of criteria on them.

Personally I would get ahead of this as far as possible and see a broker to submit an application as early as next month or month after depending on product end date

nick1980

Yep this is my first contract role.

haras_nosirrah

I was thinking along the lines of Deleted_User

Need a lender who has mortgage offers valid for 6 months
could then apply pretty much now and will have 8 months left on the contract

Have recently got a mortgage for someone on first contract with 6 months left on it so that opens up your options

That would be the best way to go

nick1980

So on that basis as long as I have 6 months at time of mortgage offer rather than time of when the mortgage will complete/start then I should be ok? Thanks

[Deleted User]

Yup. Underwriting is done on day of application so you should be fine.

Still not a lot of lender choice with this being 1st contract but ones that do offer prime high street rates so won't lose out really