How can I secure a mortgage on temporary contract work?

Posted on 24 February 2008

Hi Katie,

My partner and I are considering moving house. I own our present home and have about £32,000 left to pay on the present mortgage. I would expect to sell for about £100,000. We hope to borrow about £100,000 for any new property. We both earn about £17,000 each. My question is would it be difficult, in todays mortgage market, to secure a £100,000 as mortgage. My partner is only employed with a temporary contract with a local authority and would it limit us to the least favourable mortgage products. We both have excellent credit records and I have been employed with my present employer for 11 years. My partner has recently graduated, we both have no debts other than his student loan.

Thank you.

Hi Allan,

As you would be going into the transaction with at least £60,000 deposit, you have a good case for arguing an income stretch even your partner's income can't all be taken into account.  Saying that, temporary contracts are not all bad, many lenders will take them on board if the worker can show that he has worked constantly for a good amount of time, either in the same place or at least in a similar role, perhaps through agencies, and give enough conviction that he expects to be able to find the next placement without a gap in employment time.

Best of luck.

Categories: Temporary employment

• Save to del.icio.us
• Digg this story