If you are employed or self employed on a fixed term contract then you may have found it difficult to obtain a mortgage. This is simply because mortgage lenders are often nervous of the short term nature of contracts where there is no guarantee that the contract will be extended at the end of the current term. There is some merit in this policy although clearly no employment or self employed can be guaranteed these days. In reality, contracts can ‘roll over’ or be renewed for many years.
However, there lenders out there who are open minded enough to consider contract workers. Policies differ from lender to lender and some are a lot tougher than others, but all generally will want a track record of between 12 and 24 months. Certain lenders prefer certain industries such as the IT industry, but this is not the case with all. Some lenders will then take the weekly payment and multiply it by say 46 weeks to arrive at what they feel is a reasonable annual figure. It is this figure that lenders will use to calculate a level of mortgage which they deem is affordable.
Everybody’s situation is different so if you have any questions, please get in touch. We’ll be happy to help.
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