So I'm pretty sure this is a crazy idea, thoughts on mortgages and fixed term contracts? ?

Carrie94

So I am moving to Scotland in about 3 months time. I am a professional on a reasonable salary, but the contract is fixed term for 9 months. The liklihood is it will be extended and I will be moving to the area for much longer than this, but as its a maternity cover the organisation cannot give me a longer contract initially. Now looking at renting vs buying in this area is unbelievable. There is very little to rent and will probably cost me around £1000 a month minimum and yet you can buy the same house for a lot less money and on a standard mortgage probably pay around £300 to £400 a month. So over the year with a mortgage I would save so much money compared to renting. So here's my question, would any broker touch my situation with a barge pole? My profession is in high demand, if the job I am moving for didn't extend my contract I would easily pick up a full time permanent employed contract elsewhere within the area (and probably for a lot more money too, I am moving for this fixed term contract because its the dream place to work not for the money) but I appreciate this probably won't be taken into consideration. Would I be able to get a house move through that quickly in Scotland (I'm in England so no idea how it works, everything I've read seems to suggest it would be much quicker but I appreciate that anything can happen!)? Where would I even find a broker who would take this on?

Thank you for your thoughts and experiences, I suspect I'm crazy for even considering this! 

[Deleted User]

I think you should seek to establish yourself in the area and a permanent role before thinking about a house purchase. Regardless of whether you can raise the finance which is doubtful.

MovingForwards

Have you been contracting for a while or is this your first one?

Slithery

Have you budgeted for buying and selling costs? That's going to be a few grand at least.

canaldumidi

Do you currently own? Would you need to sell?

An independant mortgage broker can advise on whether any lender would offer a mortgage, but a 9 month contract is not a good start, irrespective of "My profession is in high demand".

The buying costs, and the time it takes, mean you'd be crazy to buy till you are more permenantly settled. In any case you'll need to rent initially (while buying) and by the time any purchase goes through you'll either be leaving shortly, or have a new contract and better mortgage prospects.

Silvertabby

If you don't know the area, then renting while you get a feel for the 'good' and 'bad' parts of town would be the way I would go. 

Could stop you from making a very expensive mistake!

Carrie94

MovingForwards said:

Have you been contracting for a while or is this your first one?

First time, I'm in the medical profession, prior to this I have a full time history of permanent employed contracts and hopefully I'll be staying in this position in a permanent role later in the year. But obviously nothing is for definite so fully aware it seems like an unlikely option

Carrie94

Slithery said:

Have you budgeted for buying and selling costs? That's going to be a few grand at least.

All budgeted for, prior to being offered this job I was planning to buy a house where I live now in England and had started the process. It's so frustrating when you look at the costs of rent vs buying, I'd easily be up on money overall if I bought something and kept it for the next 1 to 2 years even with buying and selling costs because the cost of rent is just so high! 

Thrugelmir

As far as a mortgage lender will be concerned. You'll have no job in 12 months time. Those are the facts. 

Carrie94

canaldumidi said:

Do you currently own? Would you need to sell?

An independant mortgage broker can advise on whether any lender would offer a mortgage, but a 9 month contract is not a good start, irrespective of "My profession is in high demand".

The buying costs, and the time it takes, mean you'd be crazy to buy till you are more permenantly settled. In any case you'll need to rent initially (while buying) and by the time any purchase goes through you'll either be leaving shortly, or have a new contract and better mortgage prospects.

First time buyer, I was in the process of buying last year before I was offered this position so aware of how it all works in England, but hadn't gotten to the point of selecting a broker to go with, I had spoken to a few but all the rates are so variable between them it was difficult to know who would be offering the better deal. And then with these circumstances I wouldn't have a clue where to start to ask the question of whether any lender would touch those circumstances at all

K_S

@carrie94 If the gap between your last job and the FTC isn't too long, and the FTC is in the same field, then you may have mainstream/ish options even though it's your first contract. If you're a clinician or a doctor, then your options may widen up a bit further. The lower the LTV, the better your chances are of finding a suitable lender.

So definitely not a crazy idea