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I have recently completed a mortgage for a client who worked on a fixed term employment contract as a social worker, where her Limited Company received weekly income from the local health authority.

In the past mortgage lenders would typically establish what her director’s salary and dividends were, or perhaps salary plus share of Limited Company net profit, and then lend a multiple of 4 or perhaps 5 of that taxable income to establish total mortgage borrowing.

Now it is possible to raise a mortgage against the Gross £ per hour or £ per day rate of such an employment contract. The benefit being when you multiply the before tax gross annual income by 4 or 5 the total mortgage borrowing is increased.

This mortgage lending policy applies where a job is only for a set period, although the contract may be renewed or extended.

Applicants must have been employed on a fixed term contract basis for a minimum of 12 months. If not, you must have at least 24 months remaining on your current contract. The gaps between contracts in the past 12 months can total no more than 12 weeks.

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Austin Degge


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