Getting a Mortgage on a Fixed Term Contract in Ireland: What You Need to Know
If you are a fixed-term contract worker in Ireland, you might think that getting a mortgage is out of reach. However, with the right approach and some planning, it is possible to secure a mortgage and buy your dream home.
In this article, we will explore what you need to know to get a mortgage on a fixed-term contract in Ireland.
Proof of Income
One of the main requirements for getting a mortgage in Ireland is proof of income. As a fixed-term contract worker, you will need to demonstrate that you have a reliable and steady income. This can be challenging, as lenders may view your income as less stable than that of a permanent employee.
To increase your chances of getting a mortgage, it is important to have a solid employment history. If you have been working in the same industry for several years and have a track record of securing new contracts, this will work in your favor. You should also aim to have a savings buffer that can cover any potential gaps in income.
Deposit
Another crucial factor in securing a mortgage in Ireland is the deposit. Typically, lenders will require a deposit of at least 10% of the purchase price of the property. However, the exact amount can vary depending on the lender and the type of mortgage you are applying for.
If you are a fixed-term contract worker, you may need to save up a larger deposit. This is because lenders may view your income as less secure than that of a permanent employee. By having a larger deposit, you can demonstrate that you have a financial cushion and are less risky to lend to.
Credit Score
Your credit score is another important factor that lenders will consider when assessing your mortgage application. If you have a poor credit score, this can make it harder to secure a mortgage. As a fixed-term contract worker, a good credit score is particularly important, as it can demonstrate that you are financially responsible and able to manage your debts.
To improve your credit score, you should aim to pay your bills on time, minimize your debt, and avoid opening too many credit accounts. You should also check your credit report regularly to make sure there are no errors or inaccuracies that could be bringing your score down.
Mortgage Broker
Navigating the mortgage application process can be complex and time-consuming. As a fixed-term contract worker, it may be particularly challenging to find a lender that is willing to work with you. This is where a mortgage broker can be invaluable.
A mortgage broker is a professional who can help you to find the best mortgage deals and guide you through the application process. They have access to a wide range of lenders and can help you to find a deal that is tailored to your specific circumstances. A mortgage broker can also help you to prepare your application, including providing advice on how to present your income and financial history in the best possible light.
In conclusion, getting a mortgage on a fixed-term contract in Ireland may require some extra effort and planning, but it is possible. By demonstrating your financial stability, saving up a larger deposit, maintaining a good credit score, and working with a mortgage broker, you can increase your chances of securing a mortgage and buying your dream home.