NatWest mortgage approval with 6 month fixed term employment contracts?

Lckuj2018

So our full application has got to the point where they want more info. The underwriter has said the application is accepted depending on a few details from my partner. 

We gave them what they wanted and they came back again questioning partners salary as he’s had an increase since application was submitted - they have also asked for his employment contract. 

This is where I am freaking out - it’s a 6 month fixed term which is a standard thing his employer does- then they give permanent contract, however we have no proof of that. He’s got no gaps in employment. 

Does anyone know how NatWest feel about fixed term contracts? iv ready their criteria and doesn’t mention it. They just want 6 months continual employment. 

Help 

DullGreyGuy

Is he normally a FTC/Contractor or is this an exception? 

I didn't have any issues with applying with only a couple months left on a 6 month contract but I've been doing this for 12 years and so could substantiate that I am experienced at securing ongoing work 

Lckuj2018

It’s a new job: he’s never had a fixed term Contract before. It’s a permanent job they company just do it this way to filter out the unreliable new starts. 

DullGreyGuy

Lckuj2018 said:

It’s a new job: he’s never had a fixed term Contract before. It’s a permanent job they company just do it this way to filter out the unreliable new starts. 

It may help "focus the mind" of the new starter but there is absolutely no need given anyone with less than 2 year's continuous employment can be dismissed without even having to give a reason... only if its due to protected characteristics (religion, gender etc) is there any comeback.

Lckuj2018

So if we were to explain to NatWest given the chance, Do we have a good chance of approval. 

Read this on their lending criteria

Casual employment

·         PAYE Fixed Term Contractors/ PAYE Agency workers/ PAYE Umbrella workers (who own no share of the umbrella company) should be on a contract with no less than three months remaining and proof of income must be evidenced for the last 12 months. 

·         Zero hours contractors/ Piece workers must have a history of earnings over the past 12 months. 

DullGreyGuy

Good chance of approval? That will depend on much more than this one point.

All I can say is we got our 95% mortgage a few years ago on my sole income with just under 3 months left on a contract but backed by 12 years of similar experience... they asked if it was possible to give 2-3 years experience and seemed a little taken aback when I said I could given them over a decade if they wanted it. 

Presumably he was fully employed on a similar sort of income in the rest of the last 12 months?

K_S

Lckuj2018 said:

So our full application has got to the point where they want more info. The underwriter has said the application is accepted depending on a few details from my partner. 

We gave them what they wanted and they came back again questioning partners salary as he’s had an increase since application was submitted - they have also asked for his employment contract. 

This is where I am freaking out - it’s a 6 month fixed term which is a standard thing his employer does- then they give permanent contract, however we have no proof of that. He’s got no gaps in employment. 

Does anyone know how NatWest feel about fixed term contracts? iv ready their criteria and doesn’t mention it. They just want 6 months continual employment. 

Help 

@lckuj2018 Another issue that could arise is that you've probably put down "permanent contract" on the employment type on the application form when the actual employment contract is an FTC with a certain end date.

With respect to Natwest criteria for contractors off of the top my head, the applicant needs to be able to evidence at least 12 months history on FTCs and at least 3 months remaining on the current FTC.

Based on the limited info in your post, I doubt it would meet Natwest criteria until he gets the perm contract, but hopefully I'm wrong or they don't pick it up.

ACG

I am with K_S on this, I am not convinced it fits criteria. 
There might be an exception to be made if you can get a letter from the employer confirming the role will be made permanent if he passes the 6 month "probation period" but I think your application is 50/50.

Why has this only been picked up now? This should have been picked up at application stage. Did you gloss over it? 
There are other mainstream lenders I would have picked over natwest personally. 

Lckuj2018

Just to update you - it got accepted and mortgage offered 👌🏻