Can You Get a Mortgage on a Fixed Term Contract?

can you get a mortgage on a fixed term contract

There are a lot of variables to consider when you’re looking at getting a mortgage, and one of the big ones is whether or not you’re on a fixed-term contract. A lot of people assume that they can’t get a mortgage if they’re not on a permanent contract, but that’s not necessarily the case. In this blog post, we’ll explore the ins and outs of getting a mortgage on a fixed-term contract. We’ll look at the pros and cons of such an arrangement, and we’ll also provide some tips on how to make it work for you. So if you’re thinking about getting a mortgage but you’re not sure if you qualify, read on!

What is a fixed-term contract?

A fixed-term contract is a legally binding agreement between an employer and employee that outlines the terms of employment for a set period of time. The contract can be for any length of time but is typically used for employees who are working on a specific project or for a limited duration. Once the contract expires, the employee is typically no longer employed by the company.

What is a mortgage?

A mortgage is a loan that is used to purchase a property. The property is used as collateral for the loan, which means that if you default on the loan, the lender can take possession of the property. Mortgages are typically repaid over a period of 15 to 30 years, and the interest rate on the loan may be fixed or variable.

Can you get a mortgage on a fixed-term contract?

If you’re employed on a fixed-term contract, you may still be able to get a mortgage, but it’ll likely come with stricter eligibility criteria and a higher interest rate.

Lenders will often take into account the length of your current contract and whether there’s a good chance you’ll be renewed when assessing your application. They may also require proof of income, such as payslips or bank statements.

If you’re able to get approved for a mortgage on a fixed-term contract, you can expect to pay a higher interest rate than someone who is employed permanently. This is because lenders see fixed-term contracts as being riskier.

Overall, it’s possible to get a mortgage on a fixed-term contract, but it’s not going to be easy. If you do manage to get approved, expect to pay a higher interest rate than someone who is employed permanently.

Also Read: How Successful are Mis-Sold Mortgage Claims

How to get a mortgage on a fixed-term contract

If you’re on a fixed-term contract and want to get a mortgage, there are a few things you need to know. First, you’ll need to have at least a 20% down payment saved up. Second, your contract needs to be for at least one year. And third, you’ll need to prove that you have the income to support the mortgage payments.

If you can meet these requirements, then you should be able to get a mortgage on a fixed-term contract. The process is similar to getting a mortgage on a regular basis – you’ll need to fill out an application and provide supporting documentation. The lender will then assess your creditworthiness and decide whether or not to approve your loan.

If you are approved, the terms of your loan will be based on the length of your contract. So if your contract is for two years, your loan will likely have a shorter term so that it can be paid off before your contract ends. This means that your monthly payments will be higher, but it also means that you won’t have any debt hanging over your head once your contract is up.

Getting a mortgage on a fixed-term contract can be a great way to buy a home without having to worry about renewing your mortgage every few years. Just make sure that you understand the requirements and are comfortable with the higher monthly payments before signing on the dotted line.

Pros and Cons of getting a mortgage on a fixed term contract

There are pros and cons to getting a mortgage on a fixed-term contract. One pro is that you know exactly how much your monthly payments will be for the duration of the contract. This can help with budgeting and financial planning. A con is that you may end up paying more in interest if rates go down during the course of your contract. Another con is that you may not be able to take advantage of lower rates if you need to refinance or sell your home before the end of the contract term.

Conclusion

Although it can be difficult to get a mortgage on a fixed-term contract, it is not impossible. There are some lenders who will consider your application and, if you have a good credit history and can prove that you have the income to support the repayments, you may be able to secure a mortgage. It is always worth shopping around and speaking to different lenders to see what options are available to you.

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