Can I Apply for a Mortgage on a Fixed Term Contract

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If you are a freelancer, contractor, or self-employed, you may wonder if you can apply for a mortgage on a fixed-term contract basis. In the past, it was difficult, if not impossible, for self-employed individuals to get a mortgage. However, this has changed in recent years, and now you can apply for a mortgage on a fixed-term contract.

A fixed-term contract is a type of employment agreement that specifies a start and end date for the job. It is similar to a permanent contract, but it has a specific term. Many UK lenders recognise that fixed-term contracts are becoming more common, and as such, they have become more flexible with their mortgage criteria.

When applying for a mortgage on a fixed-term contract, lenders will need to see proof of your income, just like with any other mortgage application. However, as a freelancer or contractor, your income may not be as stable as someone with a permanent job. To prove your income, you will need to show your lender your accounts for the past few years. This will demonstrate your earnings and show that you have a steady stream of income.

Additionally, if you are applying for a mortgage on a fixed-term contract, it is important to have a good credit score. A good credit score will improve your chances of getting approved for a mortgage and will also give you access to better interest rates.

In conclusion, if you are a freelancer or contractor, you can still apply for a mortgage on a fixed-term contract. However, you will need to provide proof of income and have a good credit score. It is also important to speak with a mortgage advisor who specialises in mortgages for self-employed individuals to ensure that you are getting the best deal possible. With a little bit of planning and preparation, you can become a homeowner even if you are not on a permanent contract.

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