Can you get a Mortgage on a Temporary Contract?

Can you get a Mortgage on a Temporary Contract?

Temporary contracts are becoming increasingly common in today's job market. But what does this mean if you're looking to get a mortgage?

Getting a mortgage on a temporary contract can be more difficult than getting one on a permanent contract. This is because lenders generally prefer to lend to those who have a steady income and employment history.

However, there are some lenders who may be willing to give you a mortgage if you're on a temporary contract. This is usually only the case if you have a good credit history and can provide other forms of security, such as a guarantor.

At Teito, we work with 90+ lenders across the entire market, so we can find the best deal for your individual circumstances. We have a team of expert mortgage brokers who will be able to advise you on the best course of action. Getting started is easy - compare mortgages online in seconds and get started on your journey to finding the perfect mortgage for you.

Fixed Term Contracts Explained

A fixed-term contract (also known as a temporary contract) is a contract of employment that has been agreed upon for a set period of time. This period of time can be anything from a few months to a few years. Fixed-term contracts are usually used to cover a specific need within a company, such as maternity leave or sickness absence.

During this time, both the employer and employee are committed to the contract and, depending on the terms, cannot terminate it early unless there is a breach of contract.

At the end of the fixed term, the contract will either be renewed or it will come to an end. If both parties are happy with the arrangement, then the contract can be renewed for another fixed term.

This is different to a permanent employment contract, which offers indefinite employment. With a permanent contract, job security is higher as there is no set end date.

The Advantages and Disadvantages of a Fixed-Term Contract

There are both advantages and disadvantages to fixed-term contracts. Below, we outline some of the key points to consider:

Advantages:

• You may have more income security with a fixed-term contract basis than those on a zero-hour contract
• You may be entitled to the same benefits as permanent employees, such as annual leave and sick pay
• It can provide stability and structure during your fixed-term contract

Disadvantages:

• Your income may be less secure than that of a permanent employee
• Your contract may not be renewed at the end of the fixed term
• You may not be eligible for promotion or progression within the company

Does Having a Temporary Contract Affect Your Mortgage?

Fixed term contractors can find it more difficult to get approved for a mortgage. This is because many lenders prefer to lend to those who have a permanent contract with their employer.

However, there are some specialist lenders who are willing to give mortgages to people on a fixed-term contract. This is usually only the case if you have a good credit history and can provide other forms of security, such as a guarantor.

Fixed-term contract mortgages usually have slightly higher interest rates than permanent contracts. This is because lenders view them as a higher risk.

Our team of expert mortgage advisors will be able to advise you on the best course of action. If you're thinking of applying for a mortgage on a temporary contract, it's important to compare your options and make sure you get the best deal possible.

Improve your Chances of Getting a Mortgage on a Temporary Contract

There are a few things you can do to improve your chances of getting a mortgage when you have a temporary contract:

• Save up as much money as possible for a deposit. A larger deposit will make you appear less risky to mortgage lenders.
• Work with a mortgage broker who has experience in helping people with temporary contracts. They will be able to find lenders who are more likely to approve your application.
• Have a good credit history. This will show mortgage lenders that you're a responsible borrower and give them more confidence in lending to you.
• Make sure you understand the terms of your temporary contract. Some contracts may have clauses that could make it difficult to get a mortgage. It's important to be aware of these before you apply for a mortgage.
• Consider using a guarantor. This is someone who agrees to make the mortgage repayments if you're unable to do so. This can help to reduce the risk for mortgage lenders and improve your chances of getting a mortgage.

What is the Minimum Deposit Required for a Temporary Worker Mortgage?

The minimum deposit required for a mortgage on a temporary contract will depend on the mortgage lender criteria, the property you're buying and your personal circumstances.

As a general guide, you'll need to save at least 15% of the property's value as a deposit. So, if you're buying a property worth £200,000, you'll need to save at least £30,000 for a deposit.

You may be able to get a mortgage with a smaller deposit if you have a guarantor or if you're buying a less expensive property. However, you're likely to pay a higher interest rate if you have a smaller deposit.

I Have Bad Credit - Can I Still Get a Mortgage?

Having bad credit and working on a fixed-term contract can make it more difficult to apply for a mortgage, but it's not impossible. There are lenders who specialise in bad credit mortgages and they may be willing to give you a mortgage even if you have a poor credit history.

If you have bad credit, there are a few things you can do to improve your chances of getting a mortgage:

1. Work on improving your credit score. This will take time but it will make you more attractive to lenders.
2. Save up as much money as possible for a deposit. The larger your deposit, the more likely you are to be approved for a mortgage.
3. Work with an experienced mortgage broker who can help you find the right lender and get the best mortgage deal possible.

Bad credit doesn't have to stop you from getting a mortgage. There are mortgage lenders out there who are willing to work with you. With a little bit of time and effort, you can improve your chances of being approved for a mortgage. Talk to one of our team to learn more.

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Can You Get a Mortgage Without a Permanent Job?

Yes, it's possible to find a mortgage without a permanent job. There are mortgage providers who specialise in providing mortgages to people who are contract workers or self-employed.

To apply for a mortgage without a permanent job, you'll need to prove that you have a regular income and can afford the repayments. This could include showing bank statements, tax returns or payslips.

How Long Do You Have to Be in a Job to Get a Mortgage?

The minimum amount of time you'll need to be in a job to apply for a mortgage will depend on the lender. Some lenders may require you to have been in your job for at least 3 months, while others may require 6 months or more.

It's important to check the requirements of the mortgage lender before you apply for a mortgage. This will help to improve your chances of being approved for a mortgage.

If you're not yet in a job, you could consider using a guarantor or working with a specialist broker who can help you find lenders who are more likely to approve your application.

Can I Get a Mortgage as an Agency Worker?

Yes, you can find a mortgage as an agency worker. There are a few things you need to know before you apply, though.

Agency workers are sometimes called 'contingent' or 'temporary' workers. This is because their employment is not permanent - it is usually for a set period of time, or until the completion of a particular project.

This can make it harder to get a mortgage, as lenders often prefer applicants who have a stable job and income. However, there are mortgages available for people in your situation. You may just need to jump through a few more hoops to get approved.

The first thing you need to know is that, in general, the mortgage process is the same for everyone. You'll still need to provide documentation like bank statements and tax returns, and you'll still need to go through a credit check.

The main difference is that, as an agency worker, you may need to provide more documentation to prove your income. This is because your income can fluctuate from week to week or month to month, and lenders want to be sure you can afford the mortgage payments.

To do this, you'll need to provide payslips from the last few months. If you don't have these, you may be able to provide a contract from your agency that outlines your pay rate and hours.

In some cases, you may also need a letter from your agency confirming your employment status.

Can I Get a Mortgage as an Agency Nurse?

Getting a mortgage is just one of the things you need to think about when you're starting a new job as an agency nurse. The good news is that yes, you can find a mortgage as an agency nurse. You may just need to provide a bit more documentation than someone with a traditional job.

This is because, as an agency worker, your income can fluctuate from week to week or month to month. Mortgage lenders want to be sure you can afford the mortgage payments, even when your income is lower than usual.

To get approved for a mortgage as an agency nurse, you may need to provide: 

• Your most recent payslips
• Proof of any other income
• Bank statements for the last three months
• Details of your outgoings, such as credit card and loan payments

A lender may also want to see a letter from your agency confirming your contract details, such as your expected earnings.

If you're self-employed, you'll need to provide even more documentation to show your income. This includes tax returns and accounts for the last two years (three years ideally).

Can You Get a Mortgage on a One Year Fixed Term Contract?

It's a common question we get asked, can you secure a mortgage on a one-year fixed-term contract? The simple answer is yes, but it may not be as easy as you think. If your fixed-term contract is due to expire within the next few months, then you may find it difficult to find a mortgage offer. This is because most lenders will want to see proof of employment beyond your fixed-term contract.

If you can demonstrate a track record of successful contract renewals, then you may be able to convince a lender to offer you a mortgage. However, this will likely come at a higher interest rate than if you were employed on a permanent basis.

If you're employed on a temporary basis and are looking to buy a property, then your best bet is to speak to an experienced mortgage broker. They will be able to assess your situation and recommend the best mortgage products for you.

I Am on a 6 Month Probation Period - Can I Get a Mortgage?

If you're still in your probationary period, you may find there are certain mortgage lenders who are reluctant to offer you the best deal, as they view you as a higher risk. However, this doesn't mean you won't be able to find a mortgage. It just means you may have to look a bit harder to find the right deal.

If you're employed on a temporary or agency basis, it's always best to speak to a mortgage broker before applying for a mortgage.

Can I Get a Mortgage on a Zero Hours Contract?

Zero Hours Contracts have become increasingly common in recent years, however, they can make it difficult to find a mortgage. This is because most lenders will want to see proof of regular income before they offer you a mortgage.

As long as you can demonstrate a track record of regular income from your zero-hours contract, then you should be able to get a mortgage. However, you may find that the interest rates are higher than if you were employed on a permanent basis.

If you're employed on a zero-hours contract and are looking to buy a property, then your best bet is to speak to an experienced mortgage broker. They will be able to assess your situation and recommend the best mortgage products for you.

Speak to an Expert

Your best chances of approval are by speaking with an expert. At Teito, we have a team of qualified mortgage brokers who have experience in helping people with all types of employment situations. We can help you find the best mortgage deals, even if you're employed on a temporary or agency basis.

To get started, compare mortgage deals online or speak to one of our expert mortgage brokers today.