Getting a Mortgage on a Temporary Contract

If you’re not a full-time employee, you might be wondering if you can still get a mortgage on a temporary contract. Many people across the UK find themselves in a similar situation, including agency workers, supply teachers, and professionals on short-term contracts. Here, we’ll explain what you need to know about getting a mortgage.

What is a temporary contract mortgage?

A temporary contract mortgage is for people working on short-term contracts rather than in permanent employment. This might include healthcare or IT professionals on 6 to 12-month contracts, agency workers, seasonal staff, and teachers or NHS staff working on temporary posts.

Temporary contract work is similar to fixed-term contracts but different from zero-hour or freelance work because your income comes from an employer or agency for a defined period, often with the possibility of renewal. Because these contracts have an end date, lenders usually focus on your employment continuity and income stability.

Can you get a mortgage on a temporary contract?

Yes, you definitely can. Although it can sometimes be more complex than for a permanent PAYE employee. Some high street and specialist lenders will consider applications from temporary contract workers, provided you can demonstrate a stable income and continuity of employment.

Agency workers might also be eligible, particularly if you’ve been with the same agency or working in the same field for at least 12 months. If this is the case, certain lenders will treat your income in a similar way to someone who’s permanently employed.

For example, if you’re on a temporary teaching contract, a lender may assess your affordability based on your current contract income and your employment track record within the education sector. If you’ve had a series of renewed contracts or worked consistently between schools or local authorities, that can strengthen your application.

How to get a mortgage if you’re on a temporary contract

If you’re on a temporary contract and looking for a mortgage, the key is to present your income in the best possible way and choose a lender who understands the structure of temporary or agency contracts.

Here are some of the main steps and tips to improve your chances of getting a mortgage:

1. Speak with a specialist broker

Because temporary contracts can be assessed differently by each lender, speaking to a mortgage advisor who specialises in these types of applicants is essential.

A broker can match you with lenders who are comfortable with short-term contracts and ensure your application is presented in the best light.

2. Show a consistent work history

Most lenders want to see that you’ve been working on temporary or fixed-term contracts for at least 6 to 12 months (some require longer).

If you’ve been in the same role or industry, that consistency can help build confidence in your ability to keep earning.

3. Secure a longer contract if possible

While it’s not essential (and sometimes not realistic), if you know you’ll be applying for a mortgage soon, getting an extension and having at least 3 to 6 months remaining on your current contract can make a big difference.

Some lenders may also consider rolling or renewable contracts if you can demonstrate a reliable pattern of renewals backed up with evidence.

4. Gather strong income evidence

You’ll typically need to provide your current contract, the last 3 months of payslips (or invoices), recent bank statements matching your income, and copies of any previous or renewed contracts.

If you work through an agency, payslips from the agency and a letter confirming your assignment can also help.

5. Save a strong deposit

Most lenders will expect a deposit of at least 5% to 10%, resulting in a loan-to-value (LTV) ratio of 90% to 95%.

However, if your contract is shorter or less stable, or if you’re applying with certain mainstream lenders, a larger deposit of 20% or more can improve your chances of approval or access to better rates.

6. Maintain a clean credit profile

A strong credit history always helps your case when it comes to applying for a mortgage. However, don’t fret if you have bad credit or past issues, and nothing can be done about it now.

There are still specialist bad credit lenders who can help, and your mortgage broker will be able to introduce you to the best options.

If you’d like a free, no-obligation chat with a broker who specialises in temporary contract mortgages, you can get started below:

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Which lenders offer mortgages for temporary contract workers?

Some high street lenders are more open to temporary contract workers than others. Here’s how a few of the most popular UK banks typically approach these applications:

• Halifax: One of the more flexible lenders for temporary contract workers. Halifax usually wants at least 12 months’ continuous employment in your industry and a minimum of 6 months remaining on your current contract. If you’ve had multiple renewals, they may consider shorter timeframes.

• Barclays: Generally cautious, but Barclays may accept temporary contracts if you’ve had at least 12 months’ continuous work and can demonstrate examples of contract renewals. They often require proof that you’ve been in the same line of work for over a year.

• HSBC: Like most high street lenders, HSBC is typically conservative with non-permanent roles, but they may consider temporary workers on a case-by-case basis - particularly if you can show a history of continuous employment and strong savings.

• Nationwide: Might accept some temporary contracts, especially if you’re a professional like a teacher, NHS/key worker, or engineer. Nationwide typically prefers applicants with at least 6 months remaining or evidence of consistent renewals.

Other lenders such as NatWest, Skipton Building Society, and The Mortgage Lender may also be open to temporary or agency contracts, especially if you’ve been in the same field for a while.

If you want to see which lenders are currently offering the most competitive rates for temporary contracts, you can get an idea by using our free mortgage rates comparison tool:

How much can you borrow?

The amount you can borrow on a temporary contract depends on how your income is assessed by lenders and how stable it appears. Most lenders will calculate affordability using your annualised contract income, basing it on your contract rate, salary, or average payslips.

However, after calculating your weekly income for the annualised version, some lenders may use 46 weeks, whereas others may use 48 weeks for the calculations. Once your income is established, most lenders will let you borrow around 4 times or 4.5 times your effective annual salary (though some may use higher multiples for strong applications).

The best way to get accurate figures is by having a quick chat with a specialist broker, but if you want to get a rough idea about how much you can borrow with a mortgage on a temporary contract, you can use our calculator below:

Why choose Money Helpdesk for your temporary contract mortgage?

Because getting a mortgage on a temporary contract can be more complex, comparing all your available options or working with the right broker makes all the difference.

Our expert advisors specialise in helping people on temporary and agency contracts secure a mortgage with the best rate. They know which lenders are most flexible, what documents you’ll need, and how to present your case to maximise your borrowing potential.

Here’s why temporary contract workers across the UK choose us to help with their mortgage:

• Compare temporary contract mortgage rates online for free

• Your first chat is free with no obligation to proceed further

• Our brokers are 5-star rated on leading review sites

• Access to specialist lenders with deals for temporary contract workers

If you’d like to compare the latest rates for free or speak with an experienced mortgage broker who understands temporary contracts, you can get started here.