Do I need permanent job to get a mortgage

  • Thread starter questionsquestions
  • Start date
Q

questionsquestions

Guest
I am currently employed on a full time contract basis and am considering purchasing a house with someone else. Will the fact that my employment in not permanent effect chances of getting mortgage?
 

ClubMan

Frequent Poster
Messages
43,862
Possibly not. Potential lenders may ask for stuff from self-employed/contractors that they don't ask for from PAYE workers - e.g. accounts for the past few years, evidence of income etc.
 
Y

Yuyus27

Guest
I did contract work for about a year in 2003. During this time I intended to move houses and I approached AIB for a higher mortgage ( my initial mortgage was with them and I had got it while employed on a permanent basis) They were very reluctant to do this, despite having quite a lot of equity in my old house. I clearly remember the AIB lady saying that I should get myself a permanent job ( even if it wasn't on a full time basis) and then come back to talk to them....
In all honestly, I didn't pursue it with other institutions and I didn't escalate it to senior management in AIB as I then decided to wait for a while. Also, I was trying to do this on my own, perhaps it is different if you are sharing a mortgage with somebody else - who has a permanent job.
I do not mean to discourage you - maybe I was just unfortunate with the person I dealt with!
 

ClubMan

Frequent Poster
Messages
43,862
In all honestly, I didn't pursue it with other institutions

Any reason why not? Did you not bother buying in the end?
 
Y

Yuyus27

Guest
That should have read "in all honesty" in my initial posting :)

No, I dind't buy in the end. This was for several reasons, one of them being that my situation as a contractor didn't feel very secure at the time and I didn't want the risk of increasing my expenses etc (maybe it was AIB that really put me off the idea after all!!)

In fact, I am back looking for a house now, so I will probably be posting questions soon! Still have my mortgage with AIB but I will definitely shop around when I move!
 
P

purple

Guest
They will assess you on the basis of your employment record. If you can show that you have been in work for the last few years (with one or more employers) then you are probably in the clear. A letter from your current company stating your current terms and that they intend to renew your contract would also help.
Good luck whatever you choose to do.
 
Q

questionsquestions

Guest
Thanks for the thoughts on this one, I'm sure once I get into the nitty gritty I'll have plenty more questions; at least for now I don't feel like getting a mortgage is a complete impossibility!!
 
M

mo3art

Guest
Just a bit of info.

When my sister and partner went to buy a house, he was on a long term "rolling" temporary contract. She was redundant & while she was about to take up a permanent job, wasn't working at the time they looked for the mortgage.

The bank agreed to give them the mortgage providing they held the equivalent of 6 months of repayments in savings.

This any help?
 
Q

questionsquestions

Guest
yes thanks, I'll take any advice I can get especially when indicating flexibility and options. I'm wondering if they take a different view if the house to be purchased will be for renting out. I can't afford to but where I currently live and work so I just want to try and get on the dreaded property ladder and have the mortgage paid by tenants
 
L

luke

Guest
I'm working on a contract basis too. I just provided 3 years statements of earnings from my accountant and an estimation of earnings for the coming year. Some banks wanted to see a contract guaranting 12 months which I could not provide and these ones refused me but one Bank didnt even ask for this and gave me approval.
 

bos4

Registered User
Messages
24
I am a teacher and have not been made permanent as yet, after 8 years of working. I have worked in a total of 10 schools, covering sick leaves, maternity leaves, career breaks and have all my financial records going back since before I started working. Currently I have a fixed term contract, which lasts for a year at a time, as I am replacing a lady who is out on career break. She has indicated to me privately that she is set to return next September. My employer, the Board of Management, have made no indication as of yet what my future is.

Should I go about trying to get a mortgage now?:
As
(a) My P60 will show the highest amount (circa. 38,000) that it has ever been. If I end up covering a maternity leave, it will probably be significantly lower this time next year.
(b) I can show that I have been employed in the one place for nearly three years. After next September, this is liable to be broken.
(c) I have a good record of saving and have nearly 75k between my accounts.
Or is it ,as I expect ,a bad idea as
(i) I am not in a permanent capacity and unlikely to be so for a number of years yet.
(ii) If I have a break in employment, I will have the pressure of a mortgage payment on my back?
 

Sarah W

Frequent Poster
Messages
1,167
If an applicant is not in permanent employment (and has completed any probationary period) or can show evidence of a minimum two years audited accounts as a self employed individual there can be problems. Lenders will look at contract and temporary income on a case by case basis - essentially they look for a record of income over the last 2/3 years without any significant breaks (although breaks due to travelling are not seen as a bad thing) and evidence that the client has the ability to make the payments into the future. This would normally mean a minimum of 12 months contract yet to expire or a 'letter of comfort' from a temporarily employed borrower's employer. To understand it from a lender's viewpoint, they need to be satisfied, and have evidence, that the borrower has the earning capacity to make the repayments on an ongoing basis.

Sarah

www.rea.ie
 

HelloJed

Frequent Poster
Messages
90
My bf is a contractor (he's in IT), had been working in Ireland for a year before we applied for our mortgage, but he'd worked within the industry for four years beforehand. All the banks we applied for were ok with it. (We had also been travelling for a year before that)

According to our broker, banks are coming around to the fact that some industries are contract by nature (IT, nursing, etc) and that permanent jobs just aren't as secure as they used to be.

Regarding the paperwork, my bf was asked for the same docs as mentioned above, but we did find it easier going through a broker as he advised us on suitable substitutions, etc. But this is my experience only and it does pay to check the rates and contact the banks yourself as well to make sure you're getting a good deal.
 

lff12

Frequent Poster
Messages
331
bos4 said:
I am a teacher and have not been made permanent as yet, after 8 years of working. I have worked in a total of 10 schools, covering sick leaves, maternity leaves, career breaks and have all my financial records going back since before I started working. Currently I have a fixed term contract, which lasts for a year at a time, as I am replacing a lady who is out on career break. She has indicated to me privately that she is set to return next September. My employer, the Board of Management, have made no indication as of yet what my future is.

Should I go about trying to get a mortgage now?:
As
(a) My P60 will show the highest amount (circa. 38,000) that it has ever been. If I end up covering a maternity leave, it will probably be significantly lower this time next year.
(b) I can show that I have been employed in the one place for nearly three years. After next September, this is liable to be broken.
(c) I have a good record of saving and have nearly 75k between my accounts.
Or is it ,as I expect ,a bad idea as
(i) I am not in a permanent capacity and unlikely to be so for a number of years yet.
(ii) If I have a break in employment, I will have the pressure of a mortgage payment on my back?
Should have no problem. A cousin of mine had no problem getting a mortgage last year on only a couple of years of teaching and small savings. I think the reason for this is that it is considered to be normal for teachers to live on year to year rolling contracts (I know of people who've been in the same school for as much as 17 years without being made permanent yet...)
 
J

Jenny

Guest
New user so not sure if I can/should tag on to this thread but my question is similar. I am about to change jobs from a permanent position to one with a long term (5yr renewable contract). Would I be eligible for mortgage approval straight away or will I have to wait several months? Its a 'good' secure post with better salary than I have at the moment.....
 
Top