Autismo Feira de Santana

If you`re on a fixed-term contract and looking to buy a property, you may be wondering if you`re eligible for a mortgage. The answer is yes, you can still get a mortgage if you`re on a fixed-term contract, but there are some factors that may affect your application.

First, let`s define what a fixed-term contract is. A fixed-term contract is a type of employment contract that has a set end date, rather than being open-ended, like a permanent contract. Fixed-term contracts can range from a few months to a few years and are typically used for project-based work or to cover a specific absence, such as maternity leave.

So, what do lenders look for when considering a mortgage application from someone on a fixed-term contract? Here are some key factors:

1. Income and employment history: Lenders want to see a stable income and employment history, whether you`re on a fixed-term contract or a permanent contract. You`ll need to provide evidence of your income, such as payslips and bank statements, and show that you`ve been in continuous employment for a certain period of time.

2. Length of contract: Lenders may be more hesitant to lend to someone on a very short fixed-term contract, such as a three-month contract, as there`s a higher risk that you may not be able to secure another contract after this one ends. However, if you`re on a longer fixed-term contract, such as a two-year contract, lenders may be more willing to lend to you.

3. Type of contract: Some lenders may be more willing to lend to people on fixed-term contracts if they`re in certain professions, such as healthcare or education, where fixed-term contracts are common. However, if you`re in a more precarious sector, such as the arts or hospitality, lenders may be more cautious.

4. Deposit: As with any mortgage application, the size of your deposit will be an important factor. If you`re on a fixed-term contract, having a larger deposit may help to mitigate the perceived risk of your employment status.

5. Affordability: Ultimately, lenders want to know that you can afford to repay your mortgage. They`ll look at your income and outgoings to assess whether you can afford the monthly repayments, taking into account any potential changes in your income if your contract ends.

If you`re on a fixed-term contract and considering applying for a mortgage, the best thing to do is speak to a mortgage broker or lender directly. They`ll be able to give you advice tailored to your specific situation and help you find the right mortgage product for you.

In summary, being on a fixed-term contract doesn`t automatically disqualify you from getting a mortgage. However, it may affect the type of mortgage you`re eligible for and the level of scrutiny your application receives. By being prepared and providing the necessary documentation and evidence, you can increase your chances of being approved for a mortgage.