Full application - fixed term contract

ellioth

Hi guys

So we have been accepted in NatWest for agreement in principle. My spouse is on permanent contract and I am better paid but on the 12-months fixed term ending in the end of August.

Our advisor was talking to the Mortgage advisor who will meet with us to conduct a full mortgage application next week.

But he has advised us that there is THIS ONE CONCERN - my fixed term contract. He said that the mortgage advisor will ask us some questions about the future and we have to think now how to secure mortgage payments after August if my contract will not be renewed. It must satisfy underwriters.

Honestly the company I am working for is one of the biggest in the country and there is plenty of opportunities if I wouldn’t be renewed. Two days ago I have been good rated on my End Year review meeting and my manager said she sees big future for me in the company but I know that you never can be sure.

How to satisfy underwriters? Some insurance in the case of unemployment? More deposit? Honestly I don’t know how to fully satisfy them...

I will be grateful for any opinions

[Deleted User]

Sounds a bit over the top to be honest. I've never had a natwest underwriter question future employment opportunities.

At worst I'd suggest a note placed on the file saying if the type of employment is common for the industry, if it is likely to be extended, or if your skills are transferable to other employers on fixed term or permanent basis.

I've not had a mainstream lender ask this kind of info before unless there was only 1 or 2 months of contract left.

ellioth

The advisor issuing the DIP has called the mortgage advisor and there were some questions i.e.:
What generally happens in the company after the fixed term?
What happens if your contract is not renewed?
How you can guarantee your employment after August?

I answered that 99.9% of people are renewed or going to other roles; if I am not renewed, I will be hired to another position and that never in my almost 8-year employment history I have been unemployed more than 2 days.

He said that he's happy to do a full mortgage app for us but he has some doubts that the underwriter will not be satisfied with that...

Maybe somebody had something like this or has some ideas about how to satisfy them...

ellioth

Hi guys, an update. And concern.

On 14/01 we have been accepted straight away for a mortgage subject to valuation (Natwest). They have requested some documents in the meantime but generally was ok.

On 16/01 they requested my new contract (fixed-term what was clear from the beginning) and 1 last payslip from my previous employer just to show no break between employment in the previous 6 months.

On the 20/01 our adviser called us to say that everything was received and "now we are waiting for valuation".

Bang! Today They called from the call center of Natwest to say that we didn't upload my payslip and contract from a week and they are still waiting. I responded I did it and after arguing for 2 minutes the lady finally accepted to see once more into the system. She said oh yes we have it BUT... we need 9 months more of your payslips!
I was shocked and asked why? she responded: "because of the nature of your contract".
As everything was known, that we are in the UK not so long, and everything was clear from the beginning, they say they need more payslips...
I said I am unable to do it and she said she will direct the case again to our mortgage adviser.

I checked the site and policy of Natwest and they don't have any different rules for the fixed-term contracts (appointment with mortgage adviser was very clear and okay). They have a policy for contractors that they need 12 months payslips and for the employees (not stating on what contract) continuous 6 months employment.

Valuation is scheduled for Monday and now I am so afraid the application would be rejected.

Any comments, doubts, advice?
Thank you

kingstreet

You would have been better off doing this via a broker?

I'm not sure NatWest was the right lender for this case where other lenders have more flexible criteria around fixed term contracts and a broker would get more joy out of their NatWest Business Development Manager than you will with your various contacts.

ellioth

Unfortunately, we have been declined by three brokers stating that "we have to wait" or "we have too low credit score".
When going to Natwest straight forward they accepted us for DIP and then in full application and they said our credit history, score and employment are okay to accept us.

BTW I have been to the bank a half hour ago and they said they don't know who could call us and that this is the case of our mortgage adviser and not somebody else and that we are accepted straight forward.

Probably it was some bug in the system that they needed something but they actually did not

Hope that there won't be any surprises.

MovingForwards

https://forums.moneysavingexpert.com/discussion/6087216/from-very-poor-to-fair-chances-for-dip

Just to give people more of the background of OP.

haras_nosirrah

I have just had a case accepted for someone on a fixed term contract as they have 6 months left on their contract. No questions about further employability and this was their first contract but they have been in the industry before but previously on a permanent basis. Natwest criteria for fixed term is

Provided that they have received or will receive sufficient income from one or more contracts over a 12 month period that incorporates the date of application, have received at least 6 months historic income from one or more contracts immediately preceding the date of application and have had no more than a 6 week break between contracts in the 12 month period.

Have you been contracting 12 months already?

ellioth

The second applicant is working on a perm contract so they didn't have any issues with that. We also stated that my income is clearly as extra money because we spend only money from a perm contract salary.

I am not a contractor but an employee of the company on a fixed-term contract with more than 6 months worked in the country (what meets their criteria) and 6 months still to be worked (what also meets their criteria). They had no issues with that when applying.

There was a question a week ago about how I'd secure the employment after a fixed-term end and as Deleted_User expected, it satisfied the underwriter. Therefore, 3 days ago my mortgage adviser confirmed that we are only waiting for a valuation.

The surprising thing is a contact from Natwest's call center today asking me for things already done and accepted and asking for what has not been asked. It really looked like a random person called to me because there was some old info in the system - I hope.

I hope it was only a mistake because all the action - HTB, solicitor, and valuation are in action.