Generic question - mortgages and fixed term contracts
Discussion
Looking at moving house at the mo but my other half has been offered a new job but it's only a 1 year contract to start with (although likely to be renewed). Same employer (NHS) but means coming off her current permanent contract.
I'll contact our current mortgage provider but is this likely to impact on any attempt to move? I'm guessing people move house all the time for new jobs but don't want her to jump jobs without considering implications.
I'll contact our current mortgage provider but is this likely to impact on any attempt to move? I'm guessing people move house all the time for new jobs but don't want her to jump jobs without considering implications.
I'm a contractor in the finance sector. In my experience the 2 years account thing was binned a while ago. I recently took out a new mortgage on a new house purchase and I just had to show that I had more than three months left on my contract.
The mortgage was arranged through a broker who put me in contact with Halifax who sorted it at a very competitive rate.
The mortgage was arranged through a broker who put me in contact with Halifax who sorted it at a very competitive rate.
petjam said:
I'm a contractor in the finance sector. In my experience the 2 years account thing was binned a while ago. I recently took out a new mortgage on a new house purchase and I just had to show that I had more than three months left on my contract.
The mortgage was arranged through a broker who put me in contact with Halifax who sorted it at a very competitive rate.
There you go then ... horse for courses.The mortgage was arranged through a broker who put me in contact with Halifax who sorted it at a very competitive rate.
My adviser suggested that without two years books the number of lenders willing to lend would be reduced, but things might have changed.
petjam said:
I'm a contractor in the finance sector. In my experience the 2 years account thing was binned a while ago. I recently took out a new mortgage on a new house purchase and I just had to show that I had more than three months left on my contract.
The mortgage was arranged through a broker who put me in contact with Halifax who sorted it at a very competitive rate.
Exactly the same as me when I moved in December of last year, with exactly the same mortgage provider as well... my broker said Halifax are usually the best when it comes to contractors, I got (what I consider to be) a decent rate as well.The mortgage was arranged through a broker who put me in contact with Halifax who sorted it at a very competitive rate.
The OP is not talking about about the same thing as being a Contractor.........he's talking about a fixed term contract.
The key difference is who pays the tax and NI.
If its deducted at source (which you would assume it was being NHS) then essentially it's the same as being PAYE but with a fixed term on the contract.
OP, you may struggle with this as not many lenders will lend when on a fixed term contract and those that will, will want a history of Contract work Eg evidence that the contract has been renewed or a specific amount of time left on the contract.................from a lenders point of view, you essentially have zero confirmation of what you income or employment will be at the end of the contract.......
The key difference is who pays the tax and NI.
If its deducted at source (which you would assume it was being NHS) then essentially it's the same as being PAYE but with a fixed term on the contract.
OP, you may struggle with this as not many lenders will lend when on a fixed term contract and those that will, will want a history of Contract work Eg evidence that the contract has been renewed or a specific amount of time left on the contract.................from a lenders point of view, you essentially have zero confirmation of what you income or employment will be at the end of the contract.......
petjam said:
Ah ok, maybe the redundancy will help bridge the gap?
I don't reckon there will be problems sourcing a mortgage, yes affordability is a massive factor but there are many specialised brokers out there now.
Why would there be a redundancy payment? It's simply moving to a new role within the NHS but changing from permanent to a fixed term contract.....which WILL pose mortgage problems.......not unsolvable problems, but not every lender will accept it.......I don't reckon there will be problems sourcing a mortgage, yes affordability is a massive factor but there are many specialised brokers out there now.
petjam said:
Sorry, in a different world this morning. Got it, quit perm job to take contract role!
If it was me I would sort out the new mortgage first (basically everything the OP said in their second paragraph!)
Thank god it is Friday!
Pretty much what I've done... been in my current contract for around 2 years, lots of history of renewal etc, looking to change this year so decided to sort out the mortgage whilst everything looked good for a lender!If it was me I would sort out the new mortgage first (basically everything the OP said in their second paragraph!)
Thank god it is Friday!
petjam said:
Sorry, in a different world this morning. Got it, quit perm job to take contract role!
If it was me I would sort out the new mortgage first (basically everything the OP said in their second paragraph!)
Thank god it is Friday!
that will not make a difference - mortgage companies want to know of any changes in employment in the future as well. Changing to a fixed term contract is a change in employment circumstances.If it was me I would sort out the new mortgage first (basically everything the OP said in their second paragraph!)
Thank god it is Friday!
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