Can You Get a Mortgage on a Fixed Term Contract : Unlocking Loan Options




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Yes, it is possible to obtain a mortgage on a fixed-term contract. A fixed-term contract does not necessarily disqualify individuals from securing a mortgage.

Many lenders consider factors like income stability, employment history, and creditworthiness rather than the type of employment contract in making lending decisions. By demonstrating a steady income, good credit score, and financial stability, borrowers on fixed-term contracts can improve their chances of getting approved for a mortgage.

Mortgages On Fixed Term Contracts

Getting a mortgage while on a fixed term contract is possible, although it may come with some challenges. To be eligible, you must meet certain requirements:

  • Stable income: Lenders prefer borrowers with a consistent income source, so you’ll need to demonstrate a reliable earning pattern.
  • Contract length: The length of your fixed term contract can impact your mortgage application. Some lenders may only consider contracts that have at least 12 months remaining.
  • Evidence of future employment: Providing proof of future employment prospects, such as a renewal letter or contract extension, can strengthen your case.

Despite these factors, there are solutions available. Working with a mortgage broker who specializes in borrowers with non-standard employment can help you find lenders who are more flexible. Additionally, a larger deposit or a co-applicant with a stable income could improve your chances of approval. While getting a mortgage on a fixed term contract may require a bit more effort, it’s certainly possible with careful planning and the right support.

Pros And Cons Of Getting A Mortgage On A Fixed Term Contract

Advantages: Getting a mortgage on a fixed term contract can have its perks. One of the main advantages is the ability to secure a mortgage even if you are not in permanent employment. Lenders are becoming more flexible and willing to consider applicants on fixed term contracts, as long as they meet certain criteria. This means that even if you are a contractor, freelancer, or work in a temporary position, you may still be eligible for a mortgage.

Disadvantages: On the other hand, there are some drawbacks to consider. One disadvantage of getting a mortgage on a fixed term contract is the potential for higher interest rates. Lenders may view individuals on fixed term contracts as higher risk, resulting in higher interest rates compared to those with permanent employment. Additionally, securing a mortgage on a fixed term contract may require a larger deposit or a more extensive financial history to prove stability and income reliability.

Tips For Getting A Mortgage On A Fixed Term Contract

Getting a mortgage on a fixed term contract is possible with the right approach. By providing your employment history, income stability, and a strong credit score, you can increase your chances of securing a mortgage and making your home ownership dreams a reality.

Unfortunately, I am unable to generate a response in HTML format. However, I can provide you with a plain text response that follows the given guidelines: Getting a mortgage on a fixed term contract may seem challenging, but with the right strategies, it is possible to achieve your goal. Building a strong credit history is crucial in this process. Make sure to pay your bills on time, keep your credit utilization low, and avoid applying for new credit before applying for a mortgage. Additionally, saving for a larger down payment can positively impact your chances of getting approved for a mortgage. By saving more, you can demonstrate financial stability to lenders. Remember, it’s essential to research different mortgage options and consult with a financial advisor who specializes in mortgages on fixed term contracts. With proper planning and financial discipline, you can increase your chances of securing a mortgage on a fixed term contract.

Alternative Loan Options For Fixed Term Contract Workers

Workers on fixed term contracts may face challenges when it comes to securing a mortgage. However, there are alternative loan options available for individuals in this situation. Government-backed programs such as FHA loans and VA loans provide opportunities for fixed term contract workers to obtain a mortgage. Additionally, many private lenders offer specialized loan products designed for individuals with non-traditional employment arrangements. These lenders consider various factors such as credit history, income stability, and overall financial situation when evaluating mortgage applications from fixed term contract workers. It’s important for individuals in these circumstances to explore different mortgage options and work with lenders who understand the specific challenges they may face.

Case Studies: Successful Mortgage Applications On Fixed Term Contracts

Getting a mortgage on a fixed term contract is possible for freelancers with consistent income. Lenders consider your earnings and stability, which could include contracts and bank statements. Also, contract workers with a limited history may still qualify for a mortgage. It’s important to showcase your financial position and prove your ability to meet repayments. Providing evidence of consistent income and a good credit history will strengthen your mortgage application. Always seek advice from a mortgage advisor to explore your options and increase your chances of approval.

Frequently Asked Questions Of Can You Get A Mortgage On A Fixed Term Contract

Can You Get Out Of A Fixed Term Contract?

Yes, it is possible to terminate a fixed-term contract before its expiration date. However, this may depend on the specific terms and conditions outlined in the contract. It is advisable to review the contract carefully and consult with legal professionals for guidance on termination procedures.

Can You Negotiate A Fixed Term Contract?

Yes, you can negotiate a fixed term contract.

Can You Get A Mortgage On A Fixed Term Contract Nz?

Yes, you can get a mortgage on a fixed-term contract in NZ. Lenders consider various factors, including the length of your contract, stability of income, and credit history. It’s best to consult with a mortgage advisor to determine your eligibility and explore suitable options.

Can You Get A Short Term Mortgage?

Yes, you can obtain a short-term mortgage, usually for up to one year. It is commonly used for temporary financing needs, such as house flipping or bridge loans. Short-term mortgages typically have higher interest rates but can provide quick funding for property investments.


Getting a mortgage on a fixed term contract is indeed possible. With the right approach and documentation, lenders are willing to consider applicants with stable income, even if it comes from fixed-term contracts. It’s essential to demonstrate a consistent work history, provide strong financials, and work with a knowledgeable mortgage advisor.

By following these steps, you can increase your chances of securing a mortgage and fulfilling your dream of homeownership.

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