Can I get a mortgage on a temporary work contract?

Posted on 23 November 2013 by M Ghislandi


Can I get a mortgage on a temporary work contract?

Hi, I've just started an 18 month temporary 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.

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.

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 enquiry, then please let me know and I'll put you in touch with one of our consultants.

Regards,

Simon

simon.collins@johncharcol.co.uk

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