You’re not on a permanent contract, but you still want to buy a place. Makes sense. Loads of people work on fixed-term contracts these days teachers, project managers, IT contractors, healthcare workers. The big question is: can you still get a mortgage?

The short answer is yes, but it can take a bit more work than if you were in a permanent job. Lenders want to feel confident that you can keep up with your repayments, and a fixed-term contract doesn’t always scream stability to them. But that doesn’t mean you’re out of luck.

What is a Fixed Term Contract?

First up, just to be clear if you’re on a fixed term contract, it means you’ve got a job that lasts for a specific period of time. It might be six months, a year, or even a couple of years. Some people bounce from contract to contract, and others are on rolling renewals. It’s not freelance work, but it’s not permanent either.

From a lender’s point of view, the key thing is: how steady is your income, and how likely are you to keep earning once that contract ends?

Why Lenders Get Cautious

To understand where lenders are coming from, imagine you’re lending someone a big chunk of money. You’d want to know they’ve got a reliable income, right? That’s how they’re going to pay you back.

Now, a permanent employee usually has fewer bumps in the road. There’s more predictability. But with a fixed term contract, lenders might wonder: What happens when it ends? Will there be another job lined up? Or will there be a gap? That uncertainty makes them a bit twitchy.

That said, lenders aren’t blind to how the job market works. Plenty of people live on contracts and do just fine. So instead of saying no straight away, they’ll dig into the details.

What Lenders Look For

Here’s where it gets a bit more detailed. Not all fixed term contracts are treated the same. What matters is your work history and how long you’ve been contracting.

1. Length of Contract Remaining
If your current contract has a few months left on it, that’s better than one that’s about to end. Lenders feel more confident if they know you’ve got income for the near future.

2. Track Record
Have you been working on contracts for a while? If you’ve had back-to-back contracts for the last couple of years, that looks good. It shows stability. If this is your first contract, or there are gaps between jobs, it gets trickier.

3. Industry Type
Some sectors are just more contract-heavy. In tech or healthcare, for example, contract work is common. Lenders might be more relaxed if they know people in your field usually move from one contract to the next without too much downtime.

4. Renewal History
If your contracts often get extended or renewed, that’s worth showing. It tells the lender that employers like working with you and that you’re not likely to be out of work anytime soon.

5. Income Consistency
Even if your job changes, if your income stays fairly steady, that’s a plus. If your pay fluctuates a lot or there are long gaps, expect more questions.

What You Can Do to Improve Your Chances

If you’re trying to get a mortgage on a fixed term contract, you’ll probably have to show a bit more paperwork than someone in a permanent role. Here’s what can help:

1. Show Your Work History
Gather up at least 12 months’ worth of contracts, if not more. Two years is even better. If you’ve had gaps, try to explain why—maternity leave, travel, or even just a short break between gigs.

2. Bank Statements
Lenders might want to see the last few months of your bank activity to get a sense of how steady your finances are. Keep things tidy, avoid dipping into your overdraft if you can.

3. A Letter from Your Employer
If your current contract is likely to be renewed, see if your employer can put that in writing. It’s not a guarantee, but it does help.

4. Use a Broker
Not all lenders treat contract workers the same. Some are more flexible. A broker can point you towards lenders who are used to working with people in your situation.

5. Bigger Deposit
If you can put down a larger deposit, that always helps. It lowers the lender’s risk and could open up better deals.