See how we can help

Get started online

Fixed term contract mortgage

Written By:
Myles Robinson - Expert Finance Advisor

Posted: Feb 6, 2023

Fact Checked By:
David Nicholson - Finance Editor

Fixed term contract mortgage

A temporary contract can make it challenging to obtain a mortgage as well as fixed-term contract mortgages, and while it is true that you may struggle to get a mortgage for a fixed-term contract due to your income, does this mean that you aren’t eligible for the best rates and mortgage lenders?

Don’t panic, and click the link below to speak with a mortgage advisor as we have more than a few mortgage providers lending a mortgage on a fixed contract.

We offer free mortgage advice, we can help advise on a current contract, mortgage repayments and any other fixed-term work contract questions you may have.

Use our online mortgage calculator as a guide for your monthly repayments now

We are expert mortgage brokers

We have access to over 200 lenders in the UK to get you the best rates

Get your Quote


Fixed-term contract mortgages: All you need to know

Our guide to getting a mortgage with fixed-term employment will help you understand the criteria a mortgage lender will use to assess applicants for this type of employment. It also includes top tips to increase your chances of being approved for a mortgage and we also have the FAQ section that answers common questions from customers who work in this role.

Is it possible to get a mortgage if you have a long-term employment contract?

Yes, however, you shouldn’t be concerned about whether the fixed-term contract might affect your mortgage application. You should still pursue a purchase. A mortgage broker can answer your questions regarding your deposit, loan-to-value ratio, and choice of UK mortgage lenders.

You may have used an online contractor mortgage affordability calculator as an estimate but now require more concrete evidence and we are here to help and introduce you to a few UK mortgage lenders.

Get started online


Many temporary and freelance workers are concerned about their credit history and the possible impact it might have on their already temperamental applications.

While multiple issues on an application may reduce your options for lenders, a mortgage broker can help you find a lender willing to lend to you.

Here are some tips before you apply

A mortgage application is a big decision that can significantly impact your financial future. Before you make any decisions, click the link below to speak with a mortgage broker who is regulated by the financial conduct authority.

If you are considering applying for a fixed-term contract mortgage, follow our top tips.

Get started online


Do your research

It can be time-consuming to navigate through hundreds of mortgage lenders. However, it is essential to want the best deal for your situation. Each lender has different terms, conditions, and rates. These factors can significantly impact your ability to obtain a fixed-term mortgage.

Many people don’t have enough knowledge or time to compare different lenders. But there are easier ways, including contacting ourselves with the link:

Get started online


Do not apply to multiple lenders

You might have a more challenging time getting approved for a mortgage if you have a fixed-term employment agreement. This would be a mistake, especially if the application is made within a short time.

Lenders will assess your eligibility to borrow a mortgage. They will consider factors like your affordability and credit history. You may be less attractive to lenders if you have a history of bad money management or apply for multiple credit sources.

If you are denied a mortgage, do not rush to apply to another lender. Too many credit searches could jeopardise future credit applications. A mortgage broker will assess your situation, advise you on the best steps you should take and help you find the right lender first time.

A fixed-term employment contract can qualify you for a mortgage.

Fixed-term employment contracts are less predictable, so lenders may be more cautious about providing mortgages to these borrowers. Lenders may be concerned about the borrower’s ability to pay their mortgage if their employment contract ends or they cannot find work.

If you’re applying for a mortgage with a fixed-term employment agreement, there are things you can do to reduce the likelihood of rejection.

  • Give the lender a list of all relevant employment contracts. This will prove that you can source work consistently.
  • Make sure your accounts are correct and up-to-date. Incorrect accounts could cause delays that could impact your approval.
  • Send the lender a copy of the employment contract. Lenders prefer to see at least six months of employment, although this can vary. Lenders will require proof of work in the same/similar industry or a minimum term contract history. They also need to see the contract’s remaining time. This is a matter of individual lender discretion. A job contract can prove that your work is steady and show proof of your income.
Get started online


Mortgage lenders that may accept fixed-term contracts

Lenders’ willingness to lend money to borrowers with long-term employment contracts can vary, but a broker can help you identify the lenders most likely to approve your mortgage.

Our brokers have successfully arranged mortgages with these lenders for fixed-term contract workers.

  • Halifax
  • Barclays
  • HSBC
  • Santander
  • Natwest
  • Coventry
  • First Direct
  • Virgin
  • Lloyds
  • Leeds Building Society
  • Yorkshire Building Society
  • RBS

Talk to a mortgage expert

It can be overwhelming to understand mortgages and mortgage payments. This can leave borrowers with many questions. You have many options that can affect your chances of getting mortgages while on a fixed-term agreement.

Click the link below to begin your mortgage journey with a specialist mortgage broker.

Get started online


FAQs for fixed-term contract mortgage advice

Can you remortgage a fixed-term contract?

Your current lender should be your first call when you’re considering remortgaging. However, a broker can help you to compare other deals.

This is especially useful if you have new employment status and are currently on a fixed-term contract.

Changes in income can have a significant impact on your selection of remortgage lender. Some may decide that your work is too risky or that your income is too low. Low-income mortgages are possible, but you should consult a broker to find the best lender for you and your financial situation.

Knowing that you may have various options available depending on your situation if you wish to remortgage while on a fixed-term agreement can be beneficial. Talk to a broker before applying to any lender. Be aware of all associated costs. Then, take time to consider the pros and cons.

Can a guarantor help with a mortgage for a fixed-term contract of work?

It may be advantageous to have a guarantee on your mortgage application in some instances. This is especially important if finding a lender willing to accept your complicated employment status.

However, lenders may require that the guarantor be able to pay the entire loan amount. Others only require that the guarantor can afford the shortfall. Many lenders will also require that the guarantor be a relative.

Is it different in Ireland for mortgages and fixed-term contracts?

It all depends on where you are located in Ireland and the location of your property. This will impact you finding a lender willing to take applicants on fixed-term loans. It can be harder to find a lender who is a specialist in lending in rural areas so don’t hesitate and contact us now.

Get started online