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

lookstraightahead

Thrugelmir said:

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

I agree that there is no guarantee and it doesn't tick the boxes (we've always had this problem which is why we only get mortgages for our part time permanent roles) but anyone can be out of a job in twelve months, just seems such a bizarre way to assess.

SiliconChip

Whereabouts in Scotland has such a huge disparity between rental prices and the cost of mortgages? You would expect that if the difference you describe really exists there would be many opportunities for landlords to make a killing, but the lack of rental properties available suggests that's not actually the case. I suspect you may have underestimated your likely mortgage costs.

The answer for you may well be to find a lower priced rental option until you are in a position to be a mainstream buyer, either by looking at properties that are less attractive to you than an owned property would be (including flat/house shares) or at areas where there are more properties available but would require a longer commute. For example, when I moved out of Edinburgh to Fife I got a much better property but the trade off was a 40 minute longer journey to my place of work.

Slithery

lookstraightahead said:

Thrugelmir said:

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

I agree that there is no guarantee and it doesn't tick the boxes (we've always had this problem which is why we only get mortgages for our part time permanent roles) but anyone can be out of a job in twelve months, just seems such a bizarre way to assess.

I completely agree. However, there is a far greater chance of someone with an open ended contract still having their job in 12 months than someone who's contract has a definitive end date in 9 months time.

canaldumidi

Carrie94 said:

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.

..... 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

That's why you consult an independant broker. When I have symptoms I don't understand, I go my GP and describe them. He then (hopefully) tells me what's wrong and what to do.

In this case, you describe your financial circumstances, and aspirations. He then (hopefully) tells you what is financially possible, and which lender(s) to consider.

But I still think you'd be wise to wait. Property is an expensive investment, and non-liquid (slow/hard/expensive to sell), so if the job ends after 9 months, or you hate Scotland, or you find you've bought in the wrong area, or....or.... you'll have made an expensive decision.

Thrugelmir

lookstraightahead said:

Thrugelmir said:

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

I agree that there is no guarantee and it doesn't tick the boxes (we've always had this problem which is why we only get mortgages for our part time permanent roles) but anyone can be out of a job in twelve months, just seems such a bizarre way to assess.

What's bizarre?  There's a clear distinction between permanent and temporary employment. Mortgage lenders work at the macro level not the micro. Policy is set at high level. Risk is quantified and priced. With the aid of years of statistical data. Managing defaulted accounts is likewise an expensive business. As a result lenders will have their own target markets. 

user1977

If you've got a track record of steady employment, I wouldn't have though it a great problem to get a mortgage - especially in a profession where there's hardly likely to ever be a shortage of work. But checking out the area first would seem to make sense (assuming it's not somewhere you already know) rather than immediately turning up and submitting offers.