mortage on 12 month contract

L

louie

Registered User
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evening all, have a question which i probably already know the answer to but here goes anyway. me and my wife want to move home, she is on a permanent contract and i am employed by the HSE on a 12 month contract. at the end of my 12 month contract there is a very high likelyhood that i will be offered a full time position. Is any bank going to give me a mortage based on my employment situation
 
It is unlikely you will get a mortgage based on a 12 month contract. Banks are hesistant to lend to people on contract without at least a letter of comfort from the employer. I think the more important question here louie is would you want to get a mortgage now with the chance you may not be made permanent at the end of your contract but still have the mortgage to pay from one salary.
 
thanks for your reply norfbank, at the moment i have a mortage of approx 112k on my current property and to move i would need to increase my mortage to approx 240k. the 12 months is really just a probationary period and unless i make a complete mess of things it is very unlikely i wont be offered a permanent contract so i dont really have any fears about the financial side of things and my wifes job is as secure as any other these days. by the way whats a letter of comfort! once again thx for the reply
 
I would have thought the fact that there is an embargo on recruiting in the public service at the moment would mean a lower likelihood of you being offered a contract. The bank might also take this few.

But to be clear, are you on a 12 month contract (i.e. with a definite fixed start and end date) or have you a permanent position and currently in a 12 month probationary period? Your posts don't make it clear.
 
hi bigd, i am a paramedic and we are one of the few who are in demand at the moment because of a/e closures . my contract has a definite start and finish date and the contract states any offer of future employment is at the discretion of the HSE but i have been told as i stated earlier that unless i make a monumental mess of things i will (as will all my colleagues) be offered a full time permanent position, but i dont know how i,m going to be able to get a bank to take account of that. thanks for taking a look at my post
 
What I would try and do is see if you can get "unless i make a monumental mess of things i will (as will all my colleagues) be offered a full time permanent position" in writing. Probably not possible, but it would help your case if you can.

At the end of the day, the bank looks on each application on a per case basis so there's no golden rule as to what they will and won't approve. The only real way of finding out is present them with all the info and see what the outcome is.
 
have a meeting with two banks on thursday and will put that to them and see what there response is. bigd would you by any chance know what norfbank meant by a letter of comfort, thx for your reply
 
It usually means "A letter issued to a lending institution by a parent company acknowledging the approval of a subsidiary company's attempt for financing."

But in this case I assume he means a letter similar to the one that I mentioned, i.e. a letter from your employer saying that you will get made permanent at the end of the 12 months.
 
had a feeling that was what it was,will see how thursday goes and take it from there, am seeing ptsb (my own bank) and aib, fingers crossed, once again thanks for your response
 
just a quick update on the situation, went to see aib and ptsb today. when i told aib about my contract situation one quick phone call by the lady i was talking to was enough to finish the application there and then and ptsb said basically the same thing. the person in ptsb did say if i could get whoever might be filling in my salary cert to kindly state i was a full time employee and not subject to a probation period my application would most likely be successful, not sure how a request like that would go down especially as i,m not long in the door, ah well we,ll just have to see. will think about it over the weekend
 
louie said:
the person in ptsb did say if i could get whoever might be filling in my salary cert to kindly state i was a full time employee and not subject to a probation period my application would most likely be successful,
Click to expand...

Hi Louie,

I didn't see your previous post. This is basically what a letter of comfort would be..
 
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