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mortgage broker damian youell



See some of Damian’s client reviews below

Damian is an experienced mortgage broker, founder of NeedingAdvice.co.uk Ltd and company director. With over a decade working as a mortgage broker he has a strong understanding of hard to place mortgage cases. With hundreds of 5 star client reviews. hundreds of repeat clients his work speaks for himself.

He started NeedingAdvice.co.uk as a one man band with the philosophy of putting clients needs ahead of his own. This ethos of offering excellent customer service has helped the business grow over the years. He gets satisfaction on getting cases pushed through to offer stage where other mortgage broker and companies have failed.

Throughout his time as an adviser he has carved out a niche area of advice helping clients with their business protection requirements too. Having helped hundreds of client with Relevant Life Policies, Shareholder Protection Insurance, Keyperson Policies and other important protection requirements of large to small businesses.

At home he is a family man and likes to spend his time with his four children and wife Lisa. He enjoys going on holidays spending time with friends and going for walks.

In the ever-evolving landscape of the UK’s housing market, the concept of a “mortgage on a fixed-term contract” has become a significant point of discussion. This financial instrument, which allows homeowners to lock in their mortgage rates for a specified period, has seen a surge in popularity, with 83.1% of existing mortgage holders in the UK on fixed-rate contracts.

However, a closer look at the data reveals an intriguing trend: 32.7% of this group are on short agreements of 24 months or less. This shift towards shorter-term contracts reflects the dynamic nature of the UK’s housing market and the financial strategies employed by homeowners.

The latest statistics from the Financial Conduct Authority (FCA) reveal that the outstanding value of all residential mortgage loans decreased by 0.1% from the previous quarter to £1,657.6 billion and was 1.1% lower than a year earlier. The value of gross mortgage advances decreased by 13.4% from the previous quarter to £54.0 billion, and was 33.8% lower than a year earlier.

Moreover, most fixed-rate mortgages in the UK (57%) coming up for renewal in 2023 were fixed at interest rates below 2%. These deals that are due to mature through the course of 2024 will be from two-year fixed-rate deals made in 2022 and five-year fixed-rate deals made in 2019 when mortgage rates were generally higher than 2%.

This article aims to explore these trends more deeply, exploring the implications of fixed-term contracts for the UK’s mortgage landscape and what they mean for homeowners and potential buyers navigating this complex market.

Post Topics

What is meant by a fixed-term contract?

Can you get a mortgage on a fixed-term work contract?

Points to note before applying for a Fixed Term Contract Mortgage

Applying to multiple lenders once for your term contract mortgage

Current contract details

Banks or building societies that might accept fixed-term contract mortgages

Next Steps 

 FAQs

Damian Youell

Feel Free To Start WhatsApp Chat With Us...

How We Work

1: We contact you and take down your details, income outgoings, name, address etc.

2: We will research the whole market and email you a detailed quote as well as a list of documents to proceed.

3: You upload the documents and information needed via our channel our online portal.

Feel Free to Contact Us

What is meant by a fixed-term contract?

A fixed-term contract is a type of contract in which your employment is due to end after a certain period or a specific part of the project. It is also a way to describe a particular type of employment different from the temporary contract discussed in our previous articles.

We have received many queries regarding the mortgage on a fixed-term contract. In this article, we will discuss this thoroughly and clear most of your doubts.

Can you get a mortgage on a fixed-term work contract?

Yes, you can get a mortgage with a fixed-term contract. A fixed-term mortgage could help you to start your first step on the property ladder. You can also remortgage on your current contract, which is fixed for a specific time.

It is possible to remortgage if a certain period is available on your current contract with your employer. The process of getting a mortgage on a fixed-term employment contract requires a lot of things that you may need to consider. So, it’s always better to contact a mortgage broker who can guide you and help you to get a better mortgage deal.

Points to note before applying for a Fixed Term Contract Mortgage

Applying for a mortgage on a fixed-term contract is slightly different from the temporary contract mortgages that we have in our previous guide.

First, you need to research and look for a deal best suited to your profile. Every mortgage lender offers different lending criteria that you need to consider. It’s quite common that you don’t meet the affordability criteria of every mortgage lender. It is also true that not everyone has time to research term contract mortgages, and a financial adviser could help you by doing that research for you. At needingadvice.co.uk Ltd, we have specialised brokers who are knowledgeable about applicable mortgage rates from various lenders. We can help you in quickly deciding the lender with the most appropriate mortgage term.

Applying to multiple lenders once for your term contract mortgage

It is worth noting here that you should not apply to multiple lenders in one go for your term contract mortgage; it will limit your chances of securing the deal. Every lender goes through soft or hard credit searches on your application, decreasing your overall credit score. So, it’s better to do your research and start your application with one lender at a time. Always ensure to go for an affordability assessment before starting your application. Many mortgage brokers could help you in your affordability assessment for a term contract mortgage.

People often apply for multiple lenders after being rejected once, which results in many hard searches for credit checks on their profiles in a short period, affecting their credit history. If you hire a specialised broker before starting your fixed-term contract mortgage application, you will be saved from making mistakes that could result in adverse credit.

Current contract details

When securing a mortgage, the details of the current contract are of utmost importance. Lenders assess the length and renewals of the contract to determine eligibility and potential risks. Understanding the impact of a short-term contract and the significance of written confirmation or pending extensions is essential.<a name=”Banks or building societies that might accept fixed-term contract mortgages”</a>

Contract length plays a crucial role in mortgage applications. Lenders consider the remaining time on the current contract as it indicates the stability of the borrower’s income. Typically, longer contracts are more favourable, as they provide a sense of security for both the borrower and the lender.

Short-term contracts may impact mortgage eligibility. Lenders may view them as less stable and more risky compared to longer-term contracts. This can result in a lower loan amount or higher interest rates. However, borrowers can overcome this hurdle by providing additional documentation to demonstrate consistent income or securing a written contract renewal confirmation.

The significance of written confirmation or pending extensions cannot be overstated. Lenders generally require proof of contract renewal before approving a mortgage. Without written confirmation or a pending extension, borrowers may be seen as having uncertain future income. It is essential to communicate with employers or contractors and secure written documentation to alleviate the lender’s concerns.

In conclusion, the length and renewals of the current contract hold significant weight in the mortgage application process. Short-term contracts can impact eligibility, but borrowers can overcome this by providing additional documentation or securing written confirmation of contract renewal. Constant communication and careful documentation are key aspects when dealing with current contract details in the context of securing a mortgage.

Banks or building societies that might accept fixed-term contract mortgages

Lenders’ appetite to lend to borrowers with fixed-term employment contracts can vary, but working with a broker can help you identify which ones are more likely to approve your mortgage.

The brokers we work with have successfully arranged mortgages for fixed-term contract workers with the following lenders.

Various lenders could lend to borrowers with fixed-time contracts, but you may need a market broker to identify the ones with maximum probability. Some of the lenders are mentioned in the below list.

  • Halifax
  • Nationwide
  • Barclays
  • HSBC
  • Santander
  • Natwest
  • Coventry
  • First Direct

Next Steps

Getting a fixed-term contract mortgage is complicated, but with the help of specialist mortgage brokers.

When applying for a mortgage on a fixed-term contract, it is crucial to consider the deposit requirements. Lenders typically offer options for 5% and 10% deposits, similar to those for permanently employed individuals. The size of the deposit you need will depend on various factors, including the length of your contract and your financial situation.

An important factor to keep in mind during the mortgage application process is any gaps in your work history. Lenders may view these gaps as a red flag, so it is essential to provide explanations and evidence of how you managed your finances during those periods. Additionally, maintaining a good credit score and reducing any existing debts can also increase your chances of mortgage approval.

Overall, applying for a mortgage on a fixed-term contract may present some challenges, with proper preparation and documentation. , borrowers can improve their chances of approval. Working with a broker can also help identify lenders who are more likely to approve mortgages for those on fixed-term contracts. Borrowers can navigate the mortgage application process by providing additional documentation, securing written confirmation of contract renewals, and addressing any gaps in work history. Being proactive and prepared when applying for a mortgage on a fixed-term contract is essential.

Damian Youell

Feel Free To Start WhatsApp Chat With Us...

How We Work

1: We contact you and take down your details, income outgoings, name, address etc.

2: We will research the whole market and email you a detailed quote as well as a list of documents to proceed.

3: You upload the documents and information needed via our channel our online portal.

Feel Free to Contact Us

FAQs

Can a temporary worker on a term contract secure a mortgage?

Yes, temporary workers and term contractors can obtain a mortgage, but the eligibility criteria and lending criteria might differ, requiring more comprehensive evidence of a sustainable income.

What are the documentation requirements for a fixed-term contract worker applying for a mortgage?

Applicants need to provide a current employment contract, bank statements, credit score details, and, if applicable, tax returns to show a track record of financial stability.

How does the deposit size affect mortgage approval for someone on a temporary contract?

A larger deposit often improves the chances of mortgage approval, reducing the mortgage lender’s perceived risk, especially for temporary or short-term contracts.

Is it possible for agency workers or term contractors to get a contractor mortgage?

Specialist lenders in the mortgage market offer contractor mortgages designed to accommodate agency workers’ or term contractors’ unique employment situations.

How does one’s credit history impact mortgage affordability for fixed-term contract employees?

A solid credit history, including timely credit card and loan payments, enhances mortgage affordability by demonstrating financial responsibility to lenders.

What role does a mortgage adviser play for those on fixed-term or term employment contracts?

A mortgage adviser can guide applicants through the entire mortgage application process, helping to identify contract mortgage-friendly lenders and specialist mortgage products.

Can gaps in employment or breaks in employment affect mortgage eligibility for temporary workers?

Yes, employment gaps can impact eligibility, but explaining the circumstances and showing a stable current employment contract can mitigate concerns.

What is the minimum requirement for contract length to secure a term contract mortgage?

Lenders vary in their requirements, but generally, a longer contract or a track record of renewals can improve eligibility and potentially offer more accessible mortgage options.

How do mortgage lenders assess mortgage payment and monthly mortgage payment capacity for term contractors?

Lenders assess the borrower’s regular income, annual salary, and sometimes the day rate for contractors to determine monthly repayment capacity and overall mortgage affordability.

What are the considerations for a fixed-term contract work mortgage in the mortgage market?

Considerations include the length of the contract, the stability of income, previous employment history, and any gaps between contracts.

How does a permanent position versus a fixed-term contract impact the chances of mortgage approval?

Applicants in a permanent position might find it easier to secure a mortgage, but those on fixed-term contracts can still gain approval, especially with a good track record and a suitable lender.

What specialised services do mortgage advisers offer to those on fixed-term or temporary contracts?

Mortgage advisers provide dedicated support, helping applicants navigate the range of specialist mortgage products and understand the chance of mortgage approval, often using tools like a contractor mortgage calculator.

Damian Youell

Feel Free To Start WhatsApp Chat With Us...

How We Work

1: We contact you and take down your details, income outgoings, name, address etc.

2: We will research the whole market and email you a detailed quote as well as a list of documents to proceed.

3: You upload the documents and information needed via our channel our online portal.

Feel Free to Contact Us