Implications of short term contract on mortgage

Hi PC savvy mortgage brokers,

Partner and I will in the next few months return to aus after 2 years in UK. We have deposit saved ( no need for LMI) and will be looking to purchase ppor likely within first 12 months of getting back to aus. We are reaching out to employers and plan is that we will both start to work full time shortly after our return.

My partner is looking at council positions which are fixed term contracts due to elections and potential change of local government. 1 particular position is a 9-12 month contract due to upcoming election.

Would her taking this position limit us in our mortgage options due to potential loss of job if the election goes the wrong way, and if so is it serious limitation (bar the obvious cash flow concerns for us to service the loan). We will be looking for an IO loan with an offset from a lender with good structuring to permit future IP purchases.

Thanks in advance, Tipsta

 

I'm no broker but once the loan's dispensed, it's done. Do you have to explicitly make it clear you have a 12 month contract? 12 month is not short term by the way. I've had significant loans dispensed with 6 month contracts.

 

Quite a few lenders wouldn't be bothered with the contract as outlined. What they generally want to see is that you've had consistent employment over the last few years. It would be worth getting an employment letter from the previous UK employers that states your period of employment and role.

Overall this isn't a big deal, it just needs to be matched to the right lender.

 

This should be ok - some lenders (big included) don't like it though, so it will be about going to the right lender and explaining it correctly.

 

Thanks all, your responses have provided some comfort, much appreciated!