Is There a Way of Getting a Mortgage When You're Employed on a Temporary Contract?

It is possible to get a mortgage when you are employed on a temporary contract, but it may be more challenging compared to applying with a permanent employment contract. Lenders typically prefer borrowers with stable employment and income, which can pose a hurdle for those on temporary contracts. 

Securing a Mortgage with a Temporary Work Contract 

Many of the banks, especially at higher loan-to-values, will take a more cautious view on people working on a temporary contract, however there are still lenders in the market who will assess a case on its individual merits and it's more likely that it would be this type of lender that we would look to approach. 

How Do Mortgage Lenders Work Out Affordability? 

When we are talking to a lender who manually underwrites, then a lot will depend on how positively we can present your case with the below points: 

• Deposit to salary ratio
• Overall credit position 
• Employment history 
• Employment plans 

Nonetheless, there are several factors to consider that may improve your chances of getting approved: 

1. Income stability - even though you're on a temporary contract, if you can demonstrate a stable income history and the likelihood of continued employment, it can strengthen your mortgage application. Providing evidence of regular income, such as pay stubs or bank statements, can support your case  
2. Contract length and renewal - lenders may be more willing to consider your application if your temporary contract has a relatively long duration or if it's renewable. A longer contract term or evidence of contract renewal can provide lenders with more confidence in your ability to repay the mortgage  
3. Employment history - lenders may look at your overall employment history, including any previous temporary contracts or similar employment arrangements. A track record of consistent employment and income can help mitigate concerns about the temporary nature of your current contract  
4. Financial stability - beyond your employment status, lenders will assess your overall financial stability, including credit history, debt-to-income ratio, and ability to afford mortgage repayments. Maintaining a good credit score, minimising debt, and saving for a sufficient down payment can improve your chances of approval  
5. Specialist lenders - some mortgage lenders specialise in providing mortgages to borrowers with non-traditional employment situations, such as freelancers, contractors, or those on temporary contracts. These lenders may have more flexible eligibility criteria and be more accustomed to assessing income from temporary employment  
6. Higher deposit - providing a larger deposit can reduce the lender's risk and improve your chances of getting approved. If possible, consider saving for a higher down payment to strengthen your mortgage application  
7. Seek professional advice - consulting with a mortgage broker who specialises in helping individuals with temporary employment contracts can provide valuable guidance and assistance throughout the mortgage application process. They can help you understand your options, navigate lender requirements, and present your application in the best possible light  

While getting a mortgage with a temporary employment contract may require extra effort and documentation, it's not impossible. By demonstrating stability, affordability, and responsibility in your financial affairs, you can improve your chances of securing a mortgage that meets your needs. 

If you'd like to talk more about your situation, then please call 0330 433 2927 or submit an enquiry and we'll put you in touch with one of our consultants.