Could We Get A Mortgage Without Employment Contracts?

[clipclop1]

Hi everyone,

My last post gave us some great helpful tips and helped to confirm things we already knew and had researched.
Which leads me onto my next question.

I have a contract with my new job which is ok. My other half has a contract at his current job which covers 20 hours, he gets a lot of over time which sometimes almost doubles his monthly salary. He's been given the nod to get a full time contract soon but his employers are not giving him a date so we're not sure if its going to be in 2 weeks or 6 months.

I know that different mortgage providers have different requirements that they want you to meet but I'm just wondering if anybody knows if this kind of situation will scupper our chances.

I know what some of you may think, that we should just wait until he's got the contract but our problem is the house that we're renting at the moment isn't acceptable to live in and we really don't want to sign up for another 6 months once our lease comes up for renewal so the clock is ticking to see what our options are.

I'm waiting for 'Which' to give me a call so I can access some free advice but I just thought I'd ask to see if anyone had any different experiences of this kind of situation?

Thanks in advance :)

[Mojo-Jo-Jo]

I know it's not what you want to hear clipclop, but you'd be better off once the contract is through.
If you try now and are rejected you stand less chance of getting accepted by the next lender.
How bad is the home you're in that you can't stand a little longer or negotiate a shorter lease?

[clipclop1]

Ahhh I was afraid people were going to say that!! Haha!

Its full of damp, mould and hardly any heating to cut a long story short. Our landlady is a mad as a box of frogs and its simply not worth the rent that we are paying!
We could always find another rental if a mortgage doesn't come through. It would just mean a total 5 moves in the last 14-18 months before we get a place of our own...

But thanks for your answer! :)

[Mojo-Jo-Jo]

Renting sucks sometimes doesn't it?
It'll be worth it in the end though. Just keep plugging away.
If it takes another move to get you there, choose carefully. Pick somewhere you can wait longer in, in case circumstances change again.
Good luck with it all :)

[Maydup]

Your chances of being accepted for a good mortgage will be much better once you have the contract, and once you both have pay slips which show consistent levels of income over a number of months.

[clipclop1]

Yeah we're DEFINITELY going to be learning from our mistakes with this one!

Thanks for all your answers everybody, from reading them I think we'll probably hold off doing anything that may affect our credit score until we've got everything in place to do something about it...!

[Mojo-Jo-Jo]

A very sensible move. It'll be worth it in the long run. :)

[chrissa1]

Good advice, clipclop. X

[ladybirder]

You don't have to sign up for another 6 months on your rental property clip clop. At the end of your fixed term you automatically go onto a rolling contract if you have not given, or been given, notice to quit. Once on a rolling contract you or your landlord can give 2 months notice to quit at any time. At least I think it's two months, might be one, can't remember but easy to check. So that should make things easier for you.

[clipclop1]

Ah I wasn't aware of that, I'm under the impression that we have to sign up for another 6 months after this load is up... Needless to say we don't want to stay any longer than we have to which is a shame as its a nice house... just lacking in warmth and dry, mould-free walls! Ha

[boxtops]

I didn't have that option in my rental property, it was 6 months or nothing..... but yes, wait for the contract. When I first took this job it was a 2-year contract rather than permanent, there was no way I could get a mortgage - when I got the permanent contract, it was no problem. Hang on in there for a little while longer!

[pixie373]

We had that option when renting. It was a minimum of 6 months. After that, we could leave with a months notice or they had to give us 2 months to make us leave.
My friend has just been through all this with a mortgage. She couldn't get one while temping, even though she'd been there 7 years, but could as soon as she had a permanent contract. I suppose it depends on earnings/how much you want to borrow. Personally, I'd wait for the contract.

[ladybirder]

You have it by law Boxy. It is also known as a Periodic Tenancy.

http://www.landlordlawblog.co.uk/2009/10/31/urban-myth-tenancies-must-be-‘renewed’-when-the-fixed-term-ends/

[boxtops]

That's good then - mind you, it's about 15 years since I last rented, I expect a lot has changed since then!