Can you get a mortgage on a fixed term contract?

[Lula900]

Can you get a mortgage on a two year fixed term contract (advertised with the potential to be made permanent)?

I am 23 and have saved up a deposit but a job I am really interested in has come up. It pays well and gives me the potential to do a professional qualification in the area I am interested in (and cannot currently otherwise afford to do) but it is initially offered as a two year contract.

Would I be able to get a mortgage from this? I would like to purchase a property as currently my deposit is sitting in the bank and I’m concerned house prices will exceed the rate I can save at. I also cannot live with my parents for an extended period so the other option would be renting which I would rather not do if I could buy.

Lenders will want to see that there is some track record of your consistently working and earning on this basis. This guidance for mortgage brokers from Nationwide gives a good breakdown of what sort of fixed term contract and employment history would be acceptable: www.nationwide-intermediary.co.uk/lending-criteria/employment

@ComtesseDeSpair thank you so much, this document is really helpful

Yes. I’m currently on a 2 year fixed contract and I’m in the process of getting a mortgage to move home. To buy my first house a couple of years ago I was able to get a mortgage on a 0 hour contact, I just had to show 3 payslips.

I’d recommend going to a mortgage broker. You can have a chat with them and get a quote of how much you’d be able to borrow for free. They know which lenders will accept your contract and can often get you much more than what you can get yourself. You have to pay them a fee once you get the mortgage but it was totally worth it for us!

Lenders generally don't ask to see your contract, they ask to see your payslips and bank statements. You can legitimately say you are employed. Remember you only have to answer the questions you are asked and you do not need to expand beyond yes/no.

However, do think carefully about your personal risk if the contract isn't extended. Just because its possible to do doesn't necessarily mean it is the right thing for you.