Mortgages on a Temporary or Fixed-Term Contract

Yes, you can get a mortgage on a temporary or fixed-term contract. Lenders mainly want confidence that your income will continue, shown through renewals, time in your line of work or time left on your current contract.

Many lenders accept fixed-term, temporary, agency and zero-hours workers. The evidence they want depends on the type of contract, and each lender sets its own minimums. That is why the same job can be declined by one lender and accepted by another.

This guide is for employees on non-permanent contracts. If you work for yourself on day-rate contracts through your own company, see our contractor mortgage guide instead.

For the wider picture on non-standard income, see our self-employed mortgage guide.

Can you get a mortgage on a temporary contract?

Yes, with many mainstream lenders. Most want either a set number of months left on your contract, a history of renewals or a track record in the same line of work. Agency and zero-hours workers usually need a longer history, often around 12 months, because lenders average pay that goes up and down.

What do lenders look for, by contract type?

Contract type	What lenders typically want
Fixed-term contract	Time left on the contract, a history of renewals, or time in the same line of work
Temporary contract	A track record of continuous work, often 12 months or more
Agency work	Recent payslips, often 3 to 12 months, and continuity of work
Zero-hours contract	A longer history, often 12 months or more, with income averaged
Inside IR35 or umbrella company	Often treated like employment, using payslips
Probation in a new permanent job	Accepted by some lenders, particularly in the same line of work

GOV.UK explains what counts as a fixed-term contract, including seasonal staff, project hires and maternity cover. It also sets out how zero-hours contracts work. Lenders use broadly the same categories.

One lender may need six months left on your contract, while another is satisfied with a history of renewals regardless of the end date.

How is your income worked out?

• Fixed-term contracts: usually your basic salary, as for a permanent employee, if the lender’s contract rules are met.
• Agency and temporary work: often an average of your recent payslips. Some lenders annualise a weekly or hourly rate.
• Zero-hours contracts: usually an average over 12 months or more, so quiet periods lower the figure.
• Overtime and shift allowances: may be counted in part or in full if they are regular.

That is the difference lender choice makes on the same job and contract.

Which situations do lenders see most?

These are illustrative situations, not Option Finance client outcomes.

What evidence helps?

• Your current contract, showing the employer, dates and pay
• Previous contracts or renewal letters, showing continuity
• Recent payslips, usually three months, more for agency or zero-hours work
• Your latest P60
• A letter from your employer saying your contract is likely to be renewed, if they will provide one
• Bank statements showing your pay arriving

Gaps between contracts are common. Short gaps are often acceptable, especially if you stayed in the same field. Longer gaps may mean a lender uses a lower average or wants a longer history.

What should you plan for?

• Contract ending soon. If your contract ends before the mortgage completes, many lenders want to see the renewal first. Starting early helps.
• Changing employers. Moving to a new temporary role in the same line of work is usually viewed better than a change of career.
• Maternity or long-term leave. Lenders look at your return-to-work date and pay. Tell your adviser at the start.
• Small deposit. Some lenders accept 5% deposits from temporary workers. Others want 10% or more, so the deposit affects which lenders are available. Our guide to the first-time buyer deposit explains how much you need.

What mistakes should you avoid?

1. Applying just before a contract ends. Lenders may pause the case until the renewal arrives.
2. Assuming your bank will say yes. Contract rules vary, and your bank may be one of the stricter lenders.
3. Missing payslips. Agency and zero-hours cases depend on a complete run of pay evidence.
4. Changing jobs mid-application. Even a better role can restart the lender’s checks.

Can you buy with someone on a permanent contract?

On a joint mortgage, a partner’s permanent income can carry more of the application, with your temporary income added once it meets the lender’s rules. If you are buying alone and need help, our guides to joint borrower sole proprietor mortgages and guarantor mortgages explain how family can help.

If you also have a side business on top of your contract work, our guide to mortgages with complex income covers how lenders combine the two.

Frequently asked questions

Speak to Option Finance about your temporary contract mortgage

We will tell you straight which lenders fit your contract history, and when the timing works best around your renewal.

Book a free initial consultation using the enquiry form below. See our first-time buyer mortgage advice, our self-employed and non-standard income advice and our first-time buyer guide.