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Can I get a mortgage as a temporary or fixed-term worker?
As an agency or temporary worker, you may be concerned that you won't qualify for a mortgage. You will be pleased to hear that numerous mortgage providers are happy to lend to agency workers! Having an unconventional income shouldn't be a barrier to you obtaining a mortgage, get in touch with one of our experienced advisors or carry on reading our guide to learn more.
Temporary vs permanent employment contracts
As flexible working increases in popularity with both employers and employees, the variety of employment contracts has grown alongside. Fixed-term contracts are designed to cover a specific period or complete a task, after which the deal ends or is renewed. When securing a mortgage, this introduces increased risk in comparison to permanent employment contracts.
Examples of situations where a temporary contract are used include:
- Seasonal work - to manage peaks and troughs in demand throughout the year.
- Project work - where a temporary increase in the workforce is required to complete a project
- Maternity/Paternity cover - required to temporarily replace an employee who is taking maternity or paternity leave.
How to get a mortgage with a fixed-term, short-term or temporary contract
While being a fixed-term, short-term or temporary worker doesn't inhibit your ability to get a mortgage, there are extra hoops you need to jump through to demonstrate you are a credible borrower.
When applying for a mortgage as a fixed-term, short-term or temporary worker, your lender will want to see past information on your work history and track record. They will want to to check you can afford the mortgage now and in the future. Having a continuous record of consistent earnings will help you to show this to your lender, and they will also want to understand the specifics of your current employment contract. Some lenders will need you to meet particular criteria, for example, having a six-month contract term as a minimum.
The type of work you are performing may also carry significance; our advisors can help you through the process. We help people in all positions to get a mortgage and have almost certainly already helped someone in your situation!
Here are a few tips to help you get a mortgage:
- Understand your credit history and take steps to improve your credit record if needed. Spend sensibly on a credit card and pay it off.
- Develop an information pack to show your work track record, including earnings.
- Save more towards a deposit to adjust your Loan to Value ratio; this will give you access to better interest rates and reduce the risk to lenders.
- If you have a gap in your work history, try to provide evidence.
How to get a mortgage during your probation period
Probation periods are widespread when starting new employment. They vary depending on the company you are joining, the role you are performing and your specific employment contract. Three to six month probation periods are standard; however, they can last up to twelve months. Length of probation is something to consider when starting a new role if you are looking at buying your first home or remortgaging.
While it is possible to get a mortgage during your probation period, it limits the pool of potential lenders; our experienced advisors can help
What if you have a gap in your work history?
For some lenders, having a gap in your work history can be a problem. The stance on work gaps will vary on the lender; however, if you can provide evidence, then there shouldn't be an issue.
How your job role can have an impact
To a lender, your job role will influence your risk category when it comes to being a credible borrower. For example, widely prevalent roles mean you are more likely to find another similar role, whereas functions that are more niche may be harder to replicate. Your ability to secure another comparable role - i.e. how stable the position is - will determine your future earnings in the eyes of your mortgage provider, so the role matters.
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How the length of your contract can have an impact
Many lenders will look for a minimum of six months on your current employment contract; for some, it's longer. The good news is that some lenders will consider shorter-term arrangements, and even if you are at the end of your six-month contract, you are likely to still qualify with some specialist lenders.
A few more points that will help:
- Your contract is approaching the end of the term but has been extended previously.
- There are indications of renewal or official renewal notice.
- You've been successfully working with the agency for a more extended period than the current contact.
- You've performed the same role elsewhere on either a temporary or permanent basis.
How can I learn more?
Our advisors will be able to help you whatever your situation is, get in touch to start the process today!
Choosing an Adviser
Selecting a qualified and experienced mortgage adviser is of great importance. To choose a suitable adviser, evaluate their qualifications, experience, and reputation, and ensure they are regulated by the Financial Conduct Authority (FCA).
Read reviews from previous clients and make sure they provide a clear explanation of the products and services they offer, as well as the fees and charges associated with them.