How to Get a Mortgage on a Fixed-Term Contract
How to Get a Mortgage on a Fixed-Term Contract
Blog Article
If you’re working on a fixed-term contract, getting a mortgage can feel a bit more complex than it would for someone in a permanent job. But the truth is—many lenders are open to fixed-term contractors, especially with the right guidance and preparation.
Here’s how to boost your chances of mortgage approval.
What Is a Fixed-Term Contract?
A fixed-term contract means you're employed for a specific period (e.g. 6 or 12 months), rather than having a permanent position. This is common in industries like IT, construction, education, and healthcare.
What Lenders Want to See
While some high-street lenders may hesitate, specialist mortgage providers understand the fixed-term model and focus on:
Length of your current contract
Your track record (past contracts)
Time left on your existing contract
Likelihood of renewal or future work
Your skills and demand in the market
Tips to Strengthen Your Application
1. Show a Strong History
Lenders prefer applicants with at least 12 months of consistent contract work, especially if there’s minimal gap between assignments.
2. Have a Contract Extension in Place
If you’re near the end of your current contract, a confirmed extension or new offer can ease lender concerns.
3. Save for a Bigger Deposit
A larger deposit (15–20%) shows financial stability and reduces the lender’s risk, improving your chances of approval.
4. Work With a Specialist Broker
Many mainstream lenders don’t cater well to fixed-term contractors. A broker who understands your situation can connect you with lenders that do—and present your case effectively.
Final Thoughts
Being on a fixed-term contract shouldn’t hold you back from homeownership. With the right documents, a solid contract history, and guidance from a specialist, you can absolutely secure a competitive mortgage deal.
At Contractor Mortgage Solutions, we work with fixed-term contractors daily and know how to present your case to the right lenders.