Can I get a mortgage on a temporary contract?

Posted on 23 November 2016 by M Ghislandi

Hi, I've just started an 18 month temporary work contract with a large company. My gross salary is £21.5k, with plenty of opportunity for overtime. I have a deposit of £15-£20k. My bank will only offer me a £100k mortgage if I have at least two years left to run on my contract at the time of application. What other lenders would be willing to lend to someone in my position? Many thanks for your help.

Can I get a mortgage on a temporary work contract

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 it's individual merits and it's more likley that it would be this type of lender that we would look to approach.

What will potential lenders take into account?

When we are talking to a lender who manually underwites, then a lot will depend on how positively we can present your case. The level of deposit is good, and the salary multiple works out at 4.65 x income which isn't excessive. The lender will also look at your overall credit position, and this will include how much credit you currently have, not just whether you are making the payments. Also included in their decision will be your employment history, and what will happen when the contract ends, i.e. are you likely to be offered an extension, and / or are you in an industry where you would be likely to find alternative employment easily?

Generally speaking there are very few cases that we are unable to place, and I'd be disappointed if we couldn't assist in this matter.

If you'd like to talk more about your situation, then please call 0344 346 3672 or submit an enquiry and we'll put you in touch with one of our consultants.

Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.


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