Do You Qualify for a Fixed Term Contract Mortgage?
Do You Qualify for a Fixed Term Contract Mortgage?
As you get more and more experience on fixed term contracts you get more and more options. You will have the most options if you have more than 12 months history of fixed term contracting and more than 12 months remaining.
There are fixed term contract mortgage options for people who are yet to even start on their fixed term contract though. Read more about getting a new job mortgage.
This page should help you understand if you qualify.
Last updated: 24th July 2024
Fixed term contract yet to start
Contact duration
So long as your total fixed term contract length is 12 months or more the income from it can be used providing the contract starts in the next 3 months.
Future employment
You have options without having employment lined up after the 12 month fixed term contract.
Previous employment
If your contract is 12 months or longer then no previous employment is necessary with the best fixed term contract mortgage lenders.
Minimum Deposit
So long as the contract is at least 12 months long and starting in the next 3 months:
House: 5%
Flat: 5%
New build house: 5%
New build flat: 5%
A new build is any property that has been inhabited in its current form for the first time in the last 2 years with most lenders. This would include a house converted into flats.
Contract started in the last 6 months
Contact duration
So long as your fixed term contract’s original length was for 12 months or more you can be considered so long as there are 6 months or more remaining.
If you are a professional, like a solicitor (including trainee solicitors), accountant, doctor, or other profession that requires a degree level qualification or above to perform, then you could be considered with just a month left on your fixed term contract even if your original contract length was less than 12 months.
Future employment
You have options without having employment lined up after the 12 month fixed term contract.
Previous employment
You can qualify if this is your first ever job or you have extensive work history.
Minimum Deposit
More than 12 months remaining / less than 12 months remaining
House: 5% / 5%
Flat: 5% / 10%
New build house: 5% / 15%
New build flat: 10% / 20%
A new build is any property that has been inhabited in its current form for the first time in the last 2 years with most lenders. This would include a house converted into flats.
Between 6 and 12 months on a fixed term contract
Contact duration
You need to have at least 6 months remaining on your current fixed term contract and its original length have been for 12 months or more.
If you are in the final six months of a contract see future employment.
If you are a professional, like a solicitor (including trainee solicitors), accountant, doctor, or other profession that requires a degree level qualification or above to perform, then you could be considered with just a month left on your irrespective of how long your contract was for.
Future employment
If you have your contract extended so that you have six months remaining from now you can qualify.
If you get a new fixed term contract with another company starting in the next three months you can use the future contract. See the fixed term contract yet to start section.
Previous employment
Your previous work history is unlikely to be questioned with the best fixed term contract mortgage lenders.
If however, you are on a fixed term contract that is immediately following on for a previous fixed term contract and you now have more than 12 months history on fixed term contracts see the more than 12 months section.
Minimum Deposit
More than 12 months remaining / less than 12 months remaining
House: 5% / 10%
Flat: 5% / 10%
New build house: 10% / 15%
New build flat: 10% / 20%
A new build is any property that has been inhabited in its current form for the first time in the last 2 years with most lenders. This would include a house converted into flats.
More than 12 months on fixed term contracts
Contact duration
Once you have more than 12 months on fixed term contracts you have more options.
You can qualify for a mortgage using your current contract if you’ve been on it for over 12 months and have just 3 months remaining. On some occasions this could be reduced to one month.
Future employment
You just need to have 3 months remaining on your existing contract, or one month in some situations.
If you get a new contract starting in the next 3 months you could use that salary instead.
Previous employment
The best fixed term contract lenders are usually satisfied by your 12 month history on a fixed term contract and don’t require further history.
Minimum Deposit
Assuming 3 or more months remaining:
House: 5%
Flat: 5%
New build house: 5%
New build flat: 10% / 5% if more than 12m remaining
New build houses and flats will usually require a larger deposit but it will depend on your fixed term contract history and time remaining.
A new build is any property that has been inhabited in it’s current form for the first time in the last 2 years with most lenders. This would include a house converted into flats.
Fixed Term Contract Mortgages
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