Short term employment contract and getting a mortgage?

Jet

My son and his partner are looking to get their first mortgage at some point in the next year.  He is on a permanent contract but the girlfriend's current contract is for 9 months (ends in Sept) and then it's likely she will get another temporary contract for around 9-12 months.

How will this affect what mortgages they can get please?

Myci85

We're in this position. Once she's been in post for a year, and can prove her contract is being renewed, she is more likely to be accepted by some lenders. 

DullGreyGuy

Jet said:

My son and his partner are looking to get their first mortgage at some point in the next year.  He is on a permanent contract but the girlfriend's current contract is for 9 months (ends in Sept) and then it's likely she will get another temporary contract for around 9-12 months.

How will this affect what mortgages they can get please?

What was she doing before? A perm or temp? 

If you can show history of continuous short term contracts and either renewals or bouncing straight into the next one elsewhere then lenders can be fairly comfortable with it. I've effectively been a temp for over a decade and not had issues with mortgages but had several years experience of it before applying for the first one. 

ritz55

Most contractors have short term fixed contractracts, There are mortage lenders who are OK with this, just need to approach a good broker. I'm a contractor and never had an issue with mortgages, just the selection of lenders is a bit smaller. 

ACG

Speak to a broker. It might be possible to place this at normal rates, it wont be for every lender (probably very few), but you should not need higher rates. 

kingstreet

Has she been in the same line of work for the last two years, even with other/different employers? If so, there's an easy high street option.

Jet

Thanks for the replies.  It's her first "proper" job since leaving uni although she did a paid year in industry whilst she was there and had weekend jobs whilst studying.

ACG

Not quite the same, but I did a case earlier this year where the person was on their first contract after finishing uni, it had longer left to run at the end. But it went to offer no issues. 

As I said, not for every lender but there should be options at normal rates.