Fixed term or long probation - first time buyer

Cubcub99

Got 2 job offers:

- 12 month FTC might go perm eventually 

Or

- permanent job but with 10 month probation period 


I want to buy my first house this year probably around Lincoln way.

Which one is more likely to get me a mortgage?

Do they assume you've passed probation after 6 months?

Many thanks!

Albermarle

permanent job but with 10 month probation period 

Is there a reason why the probation period is so long? Can you ask it be reduced to a more normal 3 to 6 months ?

GDB2222

Does it matter? Even if permanent, you are easy to sack during the first two years.

theartfullodger

Makes s*d all difference..  IIRC you can be fired in 1st year, maybe 2 years, no protection.  Check with CaB on jobs...

https://www.citizensadvice.org.uk/work/

Capitalism....

Cubcub99

Do they ask about probation when applying for a mortgage?

Bigphil1474

I'd say it's harder on a fixed term as the lender will ask if you are on a FTC, which would assume no employment after that contract ends. I would have an educated guess that there would be no questions of probationary periods from the lender, but they would obviously ask how long you've been employed. If it was me, I'd take the permanent post, and once the PP has completed, then look to get a mortgage.

kingstreet

A probationary period is far more acceptable. Usually, a fixed term contract has to have been renewed at least once to be accepted by the bulk of the lending market.

theartfullodger

kingstreet said:

..... Usually, a fixed term contract has to have been renewed at least once ....

And in my experience the "employer" just assumes you'll stay, doesn't get on and do the paperwork, you're in limbo for weeks, months...

I was working, fixed term contract, for a big mobile 'phone company.  Contract was up for renewal.. I explained to my "boss" a month before end date that for me, no contract no Artful at work.  He looked quizzical and surprised..  Confirmed with email..

Same again when one week to go.. Confirmed with email...

And on the last day of contract...  a Friday.... Confirmed with email..

next Monday I stayed home... got a 'phone call about 11:00 asking where the **** I was.. I referred them to the three emails.. got sorted 3 days later..  

I could afford to take the risk: Sadly most people can't (families, kids, mortgage etc etc) and stick away working with absolutely no guarantee of being paid.... 

Capitalism.... 

Myci85

Fixed term contract can be a right pain and reduce which lenders you can go to. Most need either a years previous contract plus at least 6 months left on current contract, or 2 years contracting history. Some will not lend as much as if you're on a permanent contract. My partner is on fixed term contract and we are also FTB currently going through the process, and some lenders will calculate your annual salary to be over 48 weeks instead of 52 weeks as they assume you'll have gaps between contracts. This obviously impacts affordability if like most FTB you need to borrow max amount. 

dannim12345

Try and negotiate the probation down?  I’ve only had 3 or 6 months in my roles.