Mortgage for single applicant NQT

louisetrott

Does anyone know of a mortgage lender who will lend to a NQT with a 1 year contract? I have a 15-20% deposit. Thank you in advance

bellaboo86

I got a mortgage as an NQT with a 5% but I had a permanent contract. Is it a 1 year contract in the first instance with the possibility of becoming permanent? If so, you could wait until January as that’s when you should find out. If you are dead set on purchasing now, I would find a mortgage broker to find you the best product. 

The only thing I would say is that for whatever reason you don’t secure a contract for the year after (worst case scenario) you may struggle with mortgage payments doing supply work. 

[Deleted User]

Teachers building society possibly.  Always a good place to start with awkward teaching income

louisetrott

bellaboo86 said:

I got a mortgage as an NQT with a 5% but I had a permanent contract. Is it a 1 year contract in the first instance with the possibility of becoming permanent? If so, you could wait until January as that’s when you should find out. If you are dead set on purchasing now, I would find a mortgage broker to find you the best product. 

The only thing I would say is that for whatever reason you don’t secure a contract for the year after (worst case scenario) you may struggle with mortgage payments doing supply work. 

Thank you, it is a one year with a possibility of becoming permanent. Who did you take you mortgage out with please? Thanks again

louisetrott

Deleted_User said:

Teachers building society possibly.  Always a good place to start with awkward teaching income

Sorry, I should have said, I already have an AiP from teachers building society but the rates are very high. I was hoping to find another lender with a more favourable product. Thank you for the steer though. 

[Deleted User]

Pretty much every other lender needs to have at least 1 contract renewal when they are dealing with people on fixed term contracts.   There are a few who will be flexible based on overall industry experience but thats usually for people who used to be permenant and have just started contracting in the same field.
There is also a bit of flexibility if its a 2 year contract rather than 1. 

There is one lender I can think of who will do it if you've got a 12 month contract with at least 6 months left.  not sure how they would feel about it being an NQT contract but worth speaking to someone in more detail.  

Teachers BS are great at the moment, still do 5% deposit mortgages for teachers which is incredible.  It might be a case of looking at bigger picture if its the house you want. Stick a year extra on the overall term to keep the cost at the level it would be with a better rate and remortgage to a more conventional lender once youve got a bit more track record. Yes you would pay a bit more in interest but if the property is a good deal then you might still save money vs waiting for the right mortgage to come along and the properties are more expensive (debatable in the current climate)