Can I get a decent mortgage even though I work on fixed-term contracts?

Q I am a single parent, and work as a university lecturer and researcher. I have been employed at the same institution for 10 years, initially on a part-time basis and on yearly-renewable contracts, and for the past four years full-time on two-yearly contracts.

What chance do I stand of getting a mortgage, given the fixed-term nature of my employment? I have rented a housing association property for the past 11 years, never once missing a payment, and am no doubt paying as much (if not more) each month as I would for a mortgage.

RB

A The mortgage market has greatly changed over the years. I can remember when you had to go cap in hand to the building society and bank, who were then able to impose all kinds of conditions. It is entirely different in the present, very competitive, market. Mortgage lenders are very keen to lend money and will find a way to do if it is at all possible.

Admittedly, the two main conditions for getting a mortgage remain. The value of the house against the size of the loan, and the ability of the borrower to repay the loan, which is often judged on how much they earn.

However nowadays it is recognised that the ability to repay is basically a secondary consideration, since the lender has the property as collateral for the loan should the borrower default. To some extent it depends on the loan to value ratio. If there is a big gap - for example the loan is only one third of the property's value - lenders take a very lenient view on the ability to repay since they are already more than adequately covered against risk.

But if you want a 95% to l00% loan then they will take a much stricter view of your financial outlook. In your case, you can prove regular income for a sustained period plus a good record of repayment, so you should have no problem unless you are going for a l00% loan. Even then a good mortgage broker would be able to get you a loan without too much problem.