{"id":346,"date":"2023-06-14T08:33:40","date_gmt":"2023-06-14T08:33:40","guid":{"rendered":"https:\/\/gowork.uk\/blog\/?p=346"},"modified":"2024-05-09T08:38:59","modified_gmt":"2024-05-09T08:38:59","slug":"how-to-get-a-mortgage-when-you-are-on-a-fixed-term-contract","status":"publish","type":"post","link":"https:\/\/gowork.uk\/blog\/guides\/6-how-to-get-a-mortgage-when-you-are-on-a-fixed-term-contract","title":{"rendered":"How to Get a Mortgage, When You Are On a Fixed-Term Contract"},"content":{"rendered":"\n<p>Since 2020 the number of people employed temporarily has visibly raised. Freelancing is becoming more and more popular, especially among young people entering their career paths. That is why also mortgage offers had to develop and become suitable for an average employee. Although the type of your contract will have an impact on your choice of lenders and rates, do not believe in common gossip, saying it is not possible to get a mortgage when working temporarily. In this article, we want to clarify and bring you all the details of a mortgage for fixed-term contracts.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_76 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/gowork.uk\/blog\/guides\/6-how-to-get-a-mortgage-when-you-are-on-a-fixed-term-contract\/#Can_I_Get_a_Mortgage_With_a_Fixed-Term_Contract\" >Can I Get a Mortgage With a Fixed-Term Contract?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/gowork.uk\/blog\/guides\/6-how-to-get-a-mortgage-when-you-are-on-a-fixed-term-contract\/#What_Are_the_Criteria_For_a_Fixed-Term_Mortgage\" >What Are the Criteria For a Fixed-Term Mortgage?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/gowork.uk\/blog\/guides\/6-how-to-get-a-mortgage-when-you-are-on-a-fixed-term-contract\/#How_to_Raise_Your_Application_Chances\" >How to Raise Your Application Chances?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/gowork.uk\/blog\/guides\/6-how-to-get-a-mortgage-when-you-are-on-a-fixed-term-contract\/#How_Much_Money_Can_You_Loan_on_a_Fix_Term_Contract\" >How Much Money Can You Loan on a Fix Term Contract?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/gowork.uk\/blog\/guides\/6-how-to-get-a-mortgage-when-you-are-on-a-fixed-term-contract\/#Mortgage_Lenders\" >Mortgage Lenders<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Can_I_Get_a_Mortgage_With_a_Fixed-Term_Contract\"><\/span>Can I Get a Mortgage With a Fixed-Term Contract?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>As you probably guess, the answer is &#8211; yes you can, but getting a mortgage with a fixed-term contract may be much more complicated in comparison with a contract for an indefinite period. However, it should not be a reason for you to give up your dream house or other ambition. Each case is different and if that is your first time, you should take the professional advice of a mortgage broker. This will be the most knowledgeable person to discuss the amount of the deposit and the choice of lenders. <\/p>\n\n\n\n<p>Do not be afraid to talk about your credit history and any financial issues from the past. The internet is full of mortgage calculators but most of them are just useless marketing traps. As we mentioned, every client has his own story and there are no the same cases, as far as fixed-term employees are concerned. That is why a professional mortgage broker will dispel your doubts.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Are_the_Criteria_For_a_Fixed-Term_Mortgage\"><\/span>What Are the Criteria For a Fixed-Term Mortgage?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>As a fixed-term contract does not guarantee a long-term income, the criteria must be stricter. That is because every lender wants to minimise the risk. Below, you can find a short overview of things, that are taken into consideration when applying for a mortgage with a temporary contract:&nbsp;<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>The time you have been working in your current position and company<\/strong><\/li>\n<\/ol>\n\n\n\n<p>Every lender has its criteria and of course &#8211; the longer you are employed in the same agency, the better it is for your application. Yet, most commonly, the lender requires at least 12 months spent in the same company or at least on the same position in a few different places. There are some providers with less restrictive criteria in this case or even with no minimum time, but these are usually more demanding on other levels.<\/p>\n\n\n\n<ol class=\"wp-block-list\" start=\"2\">\n<li><strong>The breaks you had during previous places of employment<\/strong><\/li>\n<\/ol>\n\n\n\n<p>As you know, it is nearly not possible to get a mortgage without a current job. However, not many people realize, how important it is to maintain continuity of employment. Every longer break in employment may raise doubts. \u2018Longer break\u2019 may be hard to define, as everything depends on individual lenders. For some, a week&#8217;s break is too long to take an applicant under consideration and others will understand a six weeks break if you explain it properly enough. Keep that in mind and always try to make your breaks in employment as short as possible.<\/p>\n\n\n\n<ol class=\"wp-block-list\" start=\"3\">\n<li><strong>The length of your current contract<\/strong><\/li>\n<\/ol>\n\n\n\n<p>The longer the term of your contract is, the easier it is to find a lender. That is because short-term contracts are often associated with a greater risk. The lender will always ask about the length of your contract and there is a significant difference, between a 3-month contract and a 2-years contract. A two-year contract shows the trust between the company and the employee. A three-month contract is often signed between a company and a new worker. It is fairly easy to deduce, which employee will have fewer problems when applying for a mortgage. Even though you have only a few months left on your contract, there is a way to encourage your potential lender. Ask your employer to submit in written form your previous contract removal and your willingness to continue the process of employment, when the current contract expires.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/gowork.uk\/blog\/wp-content\/uploads\/2023\/06\/hand-holding-a-blue-paper-with-the-word-fixed-term-2023-03-15-08-33-33-utc-1.jpg\" alt=\"\" class=\"wp-image-348\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_to_Raise_Your_Application_Chances\"><\/span>How to Raise Your Application Chances?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>We want to make applying for a mortgage with a fixed-term contract as uncomplicated as possible. That is why we have prepared a few tips for everyone employed temporarily and these are:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>TAKE CARE OF YOUR CREDIT SCORE<\/strong>&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>You can easily improve it by paying off all your credit cards, paying your bills on time and making sure, not to apply for too many mortgages at the same time. You should avoid having many enquiries opened.\u00a0<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>PREPARE AN IMPRESSIVE DEPOSIT<\/strong><\/li>\n<\/ul>\n\n\n\n<p>Most of lenders demand different high deposits. However, the more money you have collected and can put in your mortgage, the better conditions you can count on.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>PROVIDE BANK STATEMENTS<\/strong><\/li>\n<\/ul>\n\n\n\n<p>That is the best way to prove your financial stability to potential lenders. Bank statements show your earnings and expenses. This will be especially useful when determining the height of your rates. The statements will help you to prove that you can pay off the mortgage.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_Much_Money_Can_You_Loan_on_a_Fix_Term_Contract\"><\/span>How Much Money Can You Loan on a Fix Term Contract?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>There are chances of getting a 95% loan to value with only a 5% deposit. Yet, to be able to apply for such a mortgage, you have to have a flawless employment history. What is more, all <em>criteria<\/em> mentioned above must be met and you have to complete the necessary documentation such as:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>personal ID or passport<\/li>\n\n\n\n<li>proof of address<\/li>\n\n\n\n<li>most recent CV<\/li>\n\n\n\n<li>most recent contract of employment and proof of previous employment<\/li>\n\n\n\n<li>bank statements and payslips from the last 3 months<\/li>\n<\/ul>\n\n\n\n<p>The help of a mortgage broker may be helpful. After taking into consideration all these facts, a professional should be able to estimate a potential value of an application and suggest suitable lenders.\u00a0<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Mortgage_Lenders\"><\/span>Mortgage Lenders<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Remember not to apply to more than one institution at the same time because more inquires opened means less credibility. Do not be afraid to discuss with a broker, which lender will be most suitable for your case. We have prepared a list of lenders, who are probably most likely to provide a mortgage for fixed-term contracts and they are:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/gowork.uk\/hsbc-finance-london\" target=\"_blank\" rel=\"noopener\" title=\"HSBC\">HSBC<\/a>\u00a0<\/li>\n\n\n\n<li><a href=\"https:\/\/www.nationwide.co.uk\/\" target=\"_blank\" rel=\"noopener\" title=\"Nationwide\">Nationwide<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/www.halifax.co.uk\/\" target=\"_blank\" rel=\"noopener\" title=\"Halifax\">Halifax<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/www.barclays.co.uk\/\" target=\"_blank\" rel=\"noopener\" title=\"Barclays\">Barclays<\/a><\/li>\n\n\n\n<li>RBS<\/li>\n\n\n\n<li>Virgin<\/li>\n\n\n\n<li>First Direct<\/li>\n\n\n\n<li>Leeds Building Society<\/li>\n\n\n\n<li>Yorkshire Building Society<\/li>\n\n\n\n<li>Natwest&nbsp;<\/li>\n<\/ul>\n\n\n\n<p><strong>NOTE!<\/strong><\/p>\n\n\n\n<p>The decision about a mortgage should be carefully considered. Especially when working temporarily. Do not act under the influence of emotions or other people.&nbsp;<\/p>\n\n\n\n<p class=\"has-text-align-center has-xl-font-size\">If you need any more advice about getting a mortgage on a fixed-term contract, feel free to visit <a href=\"https:\/\/gowork.uk\/\" target=\"_blank\" rel=\"noopener\" title=\"Gowork.uk\">Gowork.uk<\/a> and ask a specific company about anything!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Since 2020 the number of people employed temporarily has visibly raised. Freelancing is becoming more and more popular, especially among young people entering their career paths. That is why also mortgage offers had to develop and become suitable for an average employee. Although the type of your contract will have an impact on your choice [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":347,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7],"tags":[],"class_list":["post-346","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-guides"],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/gowork.uk\/blog\/wp-json\/wp\/v2\/posts\/346","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/gowork.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gowork.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gowork.uk\/blog\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/gowork.uk\/blog\/wp-json\/wp\/v2\/comments?post=346"}],"version-history":[{"count":1,"href":"https:\/\/gowork.uk\/blog\/wp-json\/wp\/v2\/posts\/346\/revisions"}],"predecessor-version":[{"id":349,"href":"https:\/\/gowork.uk\/blog\/wp-json\/wp\/v2\/posts\/346\/revisions\/349"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/gowork.uk\/blog\/wp-json\/wp\/v2\/media\/347"}],"wp:attachment":[{"href":"https:\/\/gowork.uk\/blog\/wp-json\/wp\/v2\/media?parent=346"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gowork.uk\/blog\/wp-json\/wp\/v2\/categories?post=346"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gowork.uk\/blog\/wp-json\/wp\/v2\/tags?post=346"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}