Remortgage with fixed term contract ending

ashley88

Hi. Would welcome some advise please.

I am 19 months into a 24 month (2yr) fixed term contract (job before this was permanent). Job is not IT related. I need to remortgage and most lenders including my existing lender seem to want minimum 6 months left on fixed term contracts. By the time my remortgage can start, i will only have 2 months left on my contract however a couple of months ago I got a letter from my employer stating that they will make me permanent when my fixed term contract ends. Would I struggle to get a mortgage or should I just show the letter?

thanks

kingstreet

You won't be remortgaging with your existing lender, you will be asking for a customer retention product. No further checks are done, unless you want to borrow more...?

A remortgage to another lender would see income/employment checks and confirmation of permanent employment will usually suffice for most lenders.

Retired_Mortgage_Adviser

You could just stay with your current lender and switch products to another new fixed term (as long as you don't want to borrow more or change the term).

This involves no credit checks, no affordability, no paperwork. For the vast majority of lenders it's a 5 minute online job. You could be totally unemployed and still be allowed to switch products.

Assuming you are with a mainstream lender, there should be decent options available to switch to using the above.

If you want to explore the whole market, your situation does not completely stop you from accessing any lenders. The devil is in the detail and I would recommend getting in touch with a whole of market broker who can tell you what your realistic options are after looking at the entirety of your circumstances..

With my broker hat on, my sense is that you would be best off switching products while staying with your current lender (assuming it's a mainstream one and there aren't any other complications in the scenario).

ashley88 wrote: »

Hi. Would welcome some advise please.

I am 19 months into a 24 month (2yr) fixed term contract (job before this was permanent). Job is not IT related. I need to remortgage and most lenders including my existing lender seem to want minimum 6 months left on fixed term contracts. By the time my remortgage can start, i will only have 2 months left on my contract however a couple of months ago I got a letter from my employer stating that they will make me permanent when my fixed term contract ends. Would I struggle to get a mortgage or should I just show the letter?

thanks

ashley88

Thanks for replies. I don't want to borrow more and I would like to change lender as I am not happy with existing one and rates on offer are terrible. I would like to move to a mainstream lender. If I show them that my job will convert to permanent eventually would that be ok for most to accept me?

Retired_Mortgage_Adviser

Given that you have been in the same role for almost 2 years and that the employer is willing to give a letter confirming that you will be made permenant, a half decent broker should be able to get you a mainstream product and rate assuming you meet affordability calcs, credit history, etc.

ashley88 wrote: »

Thanks for replies. I don't want to borrow more and I would like to change lender as I am not happy with existing one and rates on offer are terrible. I would like to move to a mainstream lender. If I show them that my job will convert to permanent eventually would that be ok for most to accept me?