mortgage application query

[Hellsbells]

Does anyone know if a bank would request a copy of your employment contract or if they would just be looking at pay slips from your employer?

My partner has a 3 year fixed term contract & we've been told this will affect our chances of getting a mortgage. But do banks need to be given this information? I've googled 'documents required for a mortgage' and can't see any mention of employment contracts....
Hope this is the case. So frustating and annoying when most contacts these days seem to be fixed term, and in my partner's case, his contract will probably be extended after 3 years & even if not, he won't struggle to find other work in his field

 

[mrs quoad]

Ours wanted sight of the contract.

Fwiw, we applied with me as the only earner (my wife's situation was complicated, and French), and with me on unpredictable academic rolling fixed-terms.

We went through a mortgage advisor, which might have helped. But all they wanted was >6 clear months of remaining contract and, preferably, a clear history of sustaining contracts.

I'm not too sure of the precise details, but I've just pulled up the emails from our advisor. I'd been here for 2yrs at that point. Probably only on one contract. He needed sight of a new one with >6 left. That was it.

 

[Supine]

They will want to see it.

 

[UnderOpenSky]

Mine didn't and even if they do it's not always a show stopper.

Someone on here recommended London and Country to me after getting knocked back and they were great. They even got my sister a mortgage when she moved back to the UK and hadn't even started her new job.

 

[smmudge]

Yes they will probably want to see it. They may also want to see payslips, P60s and/or P45s.

You will not find a precise list on google of what banks will ask for when assessing you, as they can ask for any number of documents. You do not 'need' to give them anything, but then they don't 'need' to give you the mortgage.

Many people on fixed term contracts get mortgages, go to a broker and don't worry about it too much.

 

[Hellsbells]

Yes they will probably want to see it. They may also want to see payslips, P60s and/or P45s.

You will not find a precise list on google of what banks will ask for when assessing you, as they can ask for any number of documents. You do not 'need' to give them anything, but then they don't 'need' to give you the mortgage.

Many people on fixed term contracts get mortgages, go to a broker and don't worry about it too much.

Yeah we went to see a mortgage adviser & he's looking into it for us. He said we may find it difficult though. We're so desperate to stop renting (20+ years of throwing money away )

 

[ffsear]

Mine didn't ask for any employment contracts. I was told they only need them if you have recently moved jobs and are in a probationary period.

 

[mrs quoad]

Yeah we went to see a mortgage adviser & he's looking into it for us. He said we may find it difficult though. We're so desperate to stop renting (20+ years of throwing money away )

We were helped by having a large deposit.

We were also, nonetheless, basically limited to only one mainstream lender, bc of our nursery fees. (Most lenders took them into account; for reasons best known to NatWest, they didn't.)

 

[Teaboy]

During the application process you will be asked what is the nature of your employment. I don't remember having to produce a contract only pay slips, then again I am on a permanent contract. If you state permanent contract when you're on a short term contract then its mortgage fraud.

Best just leave it to the broker to earn their money.

 

[cybershot]

Mine didn't, pay slips were enough. I suspect it may come down to what you're putting on the application form for employment, and how long you've been there.

 

[Hellsbells]

Hmmm I can foresee issues then. My partner's only been in his job 6 months.
Oh well. Can only wait to see what the broker comes back with and hope for the best.

 

[equationgirl]

Having just done this recently, I only had to provide last 3 months payslips.

 

[Teaboy]

Mine didn't, pay slips were enough. I suspect it may come down to what you're putting on the application form for employment, and how long you've been there.

Are you on a permanent contract?

Having just done this recently, I only had to provide last 3 months payslips.

Are you on a permanent contract?

This information would seem to be very pertinent to the OP.

 

[equationgirl]

Yes, permanent (although it may as well be a fixed term, employer is not in the rudest of health).

But I have gotten a mortgage on a fixed term contract, and was told so long as the application wasn't being made in either the first six months or the last six months, then it should be OK.

 

[Hellsbells]

Yes, permanent (although it may as well be a fixed term, employer is not in the rudest of health).

But I have gotten a mortgage on a fixed term contract, and was told so long as the application wasn't being made in either the first six months or the last six months, then it should be OK.

How long was your fixed term contract? We were told a 3 year contract may be more problematic and that we should try and get my partner's employer to change it to a 12 month rolling contract.

 

[spanglechick]

I think my lender asked for an employer reference rather than a contract.

 

[astral]

We went to a broker and were upfront about me just having changed jobs and so being in a probation period.

Iirc they wanted payslips for the last three months but weren't interested in seeing my contact*. My mortgage broker is excellent and although based in Bristol does phone appointments. Let me know if you'd like a recommendation. We ended up with Nationwide.

*Although I think that the fact that either of us could cover the mortgage on our own helped here.

 

[Bahnhof Strasse]

never been asked to show a contract, never had a contract so that's handy. Also would not recommend using a broker for a first mortgage on a property, they're fine for re-mortgaging, but for a first one I have been let down by brokers too often not to go straight to the lender.

 

[UnderOpenSky]

never been asked to show a contract, never had a contract so that's handy. Also would not recommend using a broker for a first mortgage on a property, they're fine for re-mortgaging, but for a first one I have been let down by brokers too often not to go straight to the lender.

I guess that depends on your circumstances. If your only just hitting criteria so only some lenders will accept you then a good one makes the whole process much easier.

 

[Bahnhof Strasse]

I guess that depends on your circumstances. If your only just hitting criteria so only some lenders will accept you then a good one makes the whole process much easier.

Yeah, each time we've gone for a first mortgage on a place we were stretching ourselves to the limit, each time a broker said we'd been accepted and each time the mortgage fell through, killing the chain and each time we then went direct to a bank and worked it out with them. You'd think we'd learn, but we did the very same with our current house too

 

[equationgirl]

How long was your fixed term contract? We were told a 3 year contract may be more problematic and that we should try and get my partner's employer to change it to a 12 month rolling contract.

It was three years. It might help if you could get his boss to write a letter saying it would be extended when the time comes.

 

[Hellsbells]

It was three years. It might help if you could get his boss to write a letter saying it would be extended when the time comes.

I doubt his boss would do that tbh as it's not 100% guaranteed to happen

 

[hash tag]

It depends on your lender as to their requirements. Some application forms will ask if employement is employed/self employed/fixed term.
I reckon most lenders would ask for an employers reference and on that they would ask the employer to confirm what sort of contract it is.

I recently reduced my mortgage. My employemnt is the same as when I took the mortage out, Mrs Tag's is similar but better paid, the property has increased in value; everything was favourable. Despite this, the lender said that they would have to do all sorts of checks before changing to certain types of products...

 

[EastEnder]

It depends on your lender as to their requirements. Some application forms will ask if employement is employed/self employed/fixed term.
I reckon most lenders would ask for an employers reference and on that they would ask the employer to confirm what sort of contract it is.

I recently reduced my mortgage. My employemnt is the same as when I took the mortage out, Mrs Tag's is similar but better paid, the property has increased in value; everything was favourable. Despite this, the lender said that they would have to do all sorts of checks before changing to certain types of products...

The rules have been massively tightened in recent years, post the infamous crash. I was going to remortgage a while back cos my tracker ended, turned out there were so many hoops to jump through, and I'd recently changed jobs, that in the end I just stuck with the SVR - was only 40 quid a month more - I just couldn't face the trauma of trying to satisfy all the endless criteria.

 

[UnderOpenSky]

I'm going to be stuffed when my product comes to an end. Got the mortgage by the skin of my teeth, despite my payments being loads less then rent.

Since halfed my hours so I can do different freelance work. I don't get why switching should have so many hoops. Surely that you've not missed a payment of an equivalent amount should be enough.

 

[EastEnder]

I'm going to be stuffed when my product comes to an end. Got the mortgage by the skin of my teeth, despite my payments being loads less then rent.

Since halfed my hours so I can do different freelance work. I don't get why switching should have so many hoops. Surely that you've not missed a payment of an equivalent amount should be enough.

As I understand it it's all about the more onerous lending criteria rules that the government imposed on the banking sector. When you remortgage, even if with the same lender, it's functionally equivalent to taking out a brand new mortgage, with which you pay off the old one - as opposed to "switching" from A to B, as one might suppose. So you can end up in the bizarre position where there's no problem with you having your current mortgage, as long as you keep paying it, but you can't change to a different one because that would be akin to a fresh application, with all the attendant hoops to jump through. At least that's my amateurish understanding of the situation.

 

[hash tag]

Indeed, that is so, it's crazy. It's not like I was taking out a full non status mortgage for 10 X my salary and borrowing 90% LTV.
in fact, it was quite the opposite.

 

[equationgirl]

I went through a broker which did make things simpler, also did agreement in principle first as that didn't hit credit rating and that let me know whether or the plan was feasible. But it was at least two hours if answering questions and finding information.