Are banks lending to people on contract but not self employed?

Situation is that we'd be looking to apply for a joint mortgage. One person is in full time, permanent employment. Second applicant is on a fixed term contract, PAYE, has been with same company for last 18 months. Contract gets extended every 3 months, and has been no issue so far. However it's obviously not guaranteed past the 3 months.

Will a bank only consider the full time permanent person's income in this instance?

Thanks

If the recurring contracts are a common feature of the job (e.g. Non-Consultant Hospital Doctors) then the contract income can be taken into account.

Liam D. Ferguson

Thanks Liam. It's a university role, which is grant funded. As I said, so far there has not been an issue with renewals but also aware that they cannot guarantee future employment.

I suppose just apply & see would be the best option?

Banks will be most interested in assessing how likely is the funding going to continue. So if the grant funding is just for the completion of a specific project, e.g. a piece of research work, then it's finite and will end when the project is completed. But if the work is more open-ended and could in theory go on for a long time, tell the bank this at application stage, providing as much proof or back-up as possible.

Also if the person has specific qualifications that would be in demand point this out also.

I know that Haven tend to look favourably on contract-workers, provided that they can be satisfied that there's a reasonable chance the person will continue to be employed for a good while.