Fixed term contractor mortgages can feel like unfamiliar territory, especially when you’re working without a permanent employment contract. But if you’re on a fixed term contract and wondering whether you can still get a mortgage, the answer is yes!
The good news is many lenders do accept applications from fixed term workers.
At The Mortgage Pod, we help contractors, freelancers, and self employed applicants secure mortgage deals that are actually suited to their income and employment setup.
Whether you’re an agency worker, a self employed contractor, or on a fixed contract through an umbrella company, getting a mortgage is possible with the right approach and guidance.
Can I Get a Mortgage on a Fixed Term Contract?
Fixed term contract mortgages are available from a range of lenders, including high street banks and specialist lenders. While some mortgage providers are cautious about fixed term employment contracts, many lenders tend to focus on your track record, current contract terms, and income stability.
You don’t need permanent employment to get a mortgage, but you do need to meet the lender’s lending criteria, such as:
- Proof of a sustainable income
- A copy of your current contract and previous contracts (if applicable)
- Evidence of contract renewals or a long history in the same type of role
- Clean or manageable credit history
- Enough monthly income to cover mortgage repayments
The more consistent your work history and income, the easier it will be to get a mortgage as a fixed term contractor.
How Do Mortgage Lenders View Fixed Term Contractors?
Mortgage lenders assess risk based on income stability and employment status. Generally speaking, permanent employees are seen as lower risk.
However, as a fixed term contractor, you can still be approved if you can show:
- A current job with a contract lasting more than six months
- A good track record with contract renewal
- A strong total income across previous contracts
- Proof that you’ve been working in the same field for at least a year
Of course, some lenders are a little more flexible than others.
Say you’re on a temporary contract, zero hours contract, or have switched between different contracts, a mortgage broker will be able to connect you with a lender that are more likely to accept your application, saving you time and money.
What Documents Will I Need for a Fixed Term Contract Mortgage?
When applying for a mortgage on a fixed term contract, you’ll need to show lenders that your income is reliable. The required documents typically include:
- Your employment contract (current and possibly previous ones)
- A written confirmation of your contract renewal
- At least 3 months’ bank statements showing income
- Your latest payslips or invoices (depending on whether you’re employed or self employed)
- Tax return (SA302) or limited company accounts if you’re self employed or a limited company contractor or self employed
- A detailed CV or portfolio to show your experience and employment history
If you’re a self employed contractor or running a limited company, you may need to provide additional evidence like company accounts or longer financial records.
How Much Can I Borrow on a Fixed Term Contract?
Your maximum borrowing will depend on your income, expenses, and credit file, just like any other mortgage application.
Most lenders will lend around 4 to 4.5 times your annual income, but this varies depending on other factors like:
- How long is left on your fixed contract
- The likelihood of your contract being renewed
- Whether you’ve had a long history of similar contracts
- Your monthly income and existing debts
- The type of role and industry you work in
A mortgage broker, such as our team here at The Mortgage Pod can help assess your income and find the right lender based on your employment and financial profile.
Do I Need a Bigger Deposit?
In some cases, yes. Certain mortgage providers may ask for a larger deposit (10% to 15%) if they view your employment as less stable than permanent employees.
However, others will accept as little as 5%, especially if:
- You’ve had the same type of contract for a long period
- You’re working in a high-demand industry
- You have additional income or a co-applicant
Your deposit size can also affect your interest rate and mortgage payments. A bigger deposit typically means lower monthly repayments and more attractive deals.
Can I Remortgage on a Fixed Term Contract?
Yes, remortgaging on a fixed contract is possible, especially if your current deal is ending or your income has improved.
When applying for a remortgage, lenders will consider:
- Your current contract status
- Time remaining on the contract
- Any evidence of contract renewal
- Bank statements and proof of income
As with a new mortgage, it helps to work with a mortgage broker who understands the requirements for fixed term contract workers and can guide you to the right deal.
Fixed Term Contractors vs Self Employed Applicants
While both groups face unique challenges, fixed term contractors are typically treated as employed rather than self employed, especially if you’re on PAYE through an agency.
If you invoice clients directly or run a limited company, you may be classed as self employed, which comes with different documentation requirements.
Lenders will usually ask for:
- At least one full tax return
- Proof of business income
- Evidence of sustainable income from regular contracts or clients
It’s important to clarify your employment status early in the mortgage process, as it affects how your income is assessed.
Tips to Improve Your Chances of Getting a Mortgage
If you’re a fixed term worker or contractor, here are some steps to strengthen your mortgage application:
- Gather all contracts, current, previous, and upcoming
- Keep evidence of consistent work in the same industry
- Save for a larger deposit, if possible
- Maintain a good credit history
- Avoid large gaps between contracts
- Get a written confirmation of contract renewal from your employer or agency
Work With a Specialist Mortgage Broker
Navigating fixed term contractor mortgages can be complex, but the right mortgage advice makes all the difference.
At The Mortgage Pod, we’ve helped many fixed term workers and self employed applicants secure mortgage deals tailored to their income structure and work history. We’ll:
- Find mortgage lenders who understand fixed term employment contracts
- Explain what documents you need to provide
- Match you with the right lender based on your track record and income
- Help you avoid delays or rejections due to unclear employment status
Ready to Start Your Mortgage Application?
Whether you’re in a new job, on a fixed contract, or working as a contractor through an agency, we can help you get a mortgage that suits your current situation and long-term goals.
Speak to The Mortgage Pod today for tailored mortgage advice. Our team is here to simplify the process and guide you every step of the way.
Frequently Asked Questions – Fixed Term Contract Mortgages
Can I get a mortgage with less than six months on my contract?
Some lenders accept applications if your contract has less than six months remaining, especially if there’s a history of renewals or a strong total income. Others may require more than six months.
Do all lenders accept fixed term contractors?
No, but many lenders do. Working with a mortgage broker helps you access all the lenders open to your employment type.
What if I’m on a zero hours contract?
While more challenging, it’s still possible. Specialist lenders may accept applications if you can show regular income and a long-term track record in the same role.
Can I get a mortgage if I recently changed jobs?
Yes. If your new contract is in the same field and you have evidence of previous experience, many lenders will still consider your mortgage application.
