Mortgage - don't have permanent job?

[FTB81]

Hi,
Does anybody know if being in a permanent job is necessary to obtain a mortgage? I am currently working on a contract basis and have found a property I would consider buying. But I'm unsure if banks are willing to lend to someone who doesn't have a guaranteed income each month. Does anyone know if this is the case?

 

[andynui]

You may have to go the subprime route if thats the case because of the increased risk. And if you've read any papers over the past few months you'll know that theres a fair few problems with this market at the moment.

 

[Dave Vanian]

If you've been working for years on one contract after another and contract working is common in your industry (e.g. I.T.) you may be able to make a case to a High Street lender - gather as much information about how long you've been continually employed and a CV with all your relevant qualifications. A good broker might help you.

 

[Munsterdude]

It depends what job you do - if for example you are an civil engineer working on rolling/steady contracts, its relativly easy. What circumstances are you in?

 

[MortgageMate]

You may have to go the subprime route if thats the case because of the increased risk. And if you've read any papers over the past few months you'll know that theres a fair few problems with this market at the moment.

Problems in the US, but Ireland's "sub prime" lenders operate entirely different to those in the States. I don't think there are any problems with the Irish "Specialist" Market. They are much better regulated here and are nowhere near as reckless as the banks in the US.

Don't listen to everything David McWilliams says.

 

[Munsterdude]

They are much better regulated here and are nowhere near as reckless as the banks in the US.

Don't listen to everything David McWilliams says.

not sure i agree......some of the self-cert stuff Irish Sub-prime lenders do is reckless in my view

 

[OneLife]

Well, mortgage rates for the main sub-prime lenders in Ireland have increased 0.5%-1.0% in the last month. I think that is a relevant piece of information.

The same liquidity difficulties that have caused the subprime lenders to increase their rates will also potentially cause Irish prime Lenders to withdraw their low margin tracker products from the market or to reprice them (as has happened in the UK)

[broken link removed]

to change a quote from the above link...

"The problem for lenders is that trackers are linked to base rates – they have to be, because that is what consumers understand – but their financing costs are linked to Euribor."

Its just that the subprime lenders in Ireland fund from Euribor, and the base rates they build their products on are based on the Euribor rate (currently 4.75%, but usually only a margin above the ECB rate)