The good news is that being on a temporary work contract won’t necessarily stop you getting a mortgage, providing you have at least 12 months’ history in that current line of work and have not had any breaks in employment.
What’s the issue with ‘temp’ contracts and mortgages?
Most lenders don’t like short term contracts because they suggest the applicant’s income isn’t guaranteed for any significant period of time.
If you’re on a temporary contract, then this could further increase your risk in the eyes of a lender and make it more difficult still.
In some ‘professional’ job roles, temporary or short term contracts tend to be more commonplace and so may be viewed differently on a mortgage application.
For example, a lot of IT professionals and locum GPs operate on zero hour contracts so lenders are less likely to reject mortgages for these individuals, however those same lenders may deny the application of a retail worker on a temporary contract.
Like the majority of factors considered in a mortgage or remortgage application, it’s all relative to the individual case and treated on a case by case basis.
How can I get a mortgage while on a temporary contract?
It is possible to get a mortgage on a temporary employment contract. But I would recommend seeking advice on whether you are likely to qualify for a mortgage or not first, because a rejection could damage your credit rating.
In general, you can improve your chances by:
- Building your credit rating
- Providing your payslips from the last 12 months (at least)
- Providing your last two P60 forms (or tax returns if you handle your own taxes)
- Proving that you have at least a 12 month history doing this type of temporary work
- Providing your bank statements from the past three years to prove your steady income
- Putting down a larger deposit
A large deposit always helps, as bringing down the risk to the lender and you become a more attractive borrower.
What should I do next?
No matter what, you’re facing a tougher application process than those in regular full-time employment. Just know that your temporary or zero hour contract will not automatically stop you getting a mortgage, it just that some lenders assess them differently to others.
The best place to start is to call one of our mortgage advisers. They can talk you through the different lenders criteria, discuss your options and help you figure out the best way forward. You can call us on 0800 953 0304 from a landline or 0330 303 0036 from a mobile. Our advice is award-winning and it won't cost you a thing.
YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
