Mortgages on temporary contracts (fixed-term, agency, zero-hours)

Can you get a mortgage on a temporary contract?

Yes—many borrowers can apply for a residential mortgage while working on a temporary contract, fixed-term role, agency position or zero-hours agreement. The key difference is that lenders usually focus more closely on stability: how long you’ve been in the same type of work, whether your income looks sustainable, and what’s likely to happen next.

While every lender has its own rules, many will look for:

• A track record in the same industry or role type (often around 12 months, but this varies)
• Some time left on your current contract (often measured in months, not days)
• Evidence of income that can be converted into an annual figure for affordability

What lenders usually look for: contract length and work history

Temporary work can be legitimate and ongoing, but lenders need reassurance that you’re not taking on a mortgage based on income that may disappear quickly.

1) Work history matters more than the exact contract

In many cases, lenders care about your experience and continuity in the same line of work, rather than whether the contract title is identical. For example, you may move between short assignments or agency placements, but if you can show you’ve been working consistently in the same sector, that can help.

2) Time left on the current contract

Even if you have the right history, lenders typically want to avoid approving a mortgage when the contract is about to end with no clear plan.

If your contract is due to finish very soon, the lender may ask what happens next. Generally, having several months remaining (rather than only a short period) can make the application easier to assess.

3) What if your contract is only expected to last 12 months?

A shorter fixed-term can still work if you have previous relevant history and there is a credible expectation of continuation—such as renewal, extension, or a new assignment in the same type of work.

How lenders assess your income on temporary or zero-hours contracts

Lenders usually calculate affordability using an annual income figure. How they build that figure depends on the type of contract.

If you’re paid regularly on a temporary contract

If you receive a regular monthly or weekly wage, lenders typically use payslips to estimate annual income in a similar way to other employed applicants.

If your income fluctuates (common with zero-hours)

Where income varies, lenders often take a more cautious approach. Instead of relying on a single recent payslip, they may:

• Average your earnings over a longer period (for example, several months)
• Request more evidence (such as additional payslips) to confirm the pattern

The aim is to estimate a figure that is realistic, not just your highest-earning month.

What documents are commonly requested

Although requirements vary, applications for temporary-contract borrowers often involve evidence such as:

• Payslips covering the period the lender wants to assess
• Proof of employment/contract details
• Bank statements (sometimes used to support income patterns)
• Identification and standard affordability information

If you’re on an agency arrangement, lenders may also want clarity on the employer/agency relationship and how assignments are expected to continue.

How much you can borrow and what deposit you may need

Your borrowing amount is driven by affordability—income (as assessed by the lender) minus your outgoings, compared against the lender’s affordability assessment.

Borrowing is calculated using the lender’s affordability model

Once your annual income figure is established, the mortgage calculation generally works much like it does for other employed borrowers: the lender uses its affordability assessment to determine what you can manage.

Deposits: the same product rules usually apply

Deposit expectations can vary by lender and product, but in practice temporary-contract borrowers are often assessed under the same general deposit and product framework as other applicants.

A larger deposit can improve options, but a smaller deposit doesn’t automatically rule you out—what matters is whether the application meets the lender’s overall criteria.

Can you remortgage if you’re still on a temporary contract?

Remortgaging is where work history can become especially important.

• If you already meet the lender’s requirements (including the relevant history), a new lender may consider you for a new deal.
• If you don’t meet the lender’s history expectations, you may find your options limited to staying with your current lender and selecting a new rate.

It’s also common that, where a remortgage is limited to a product switch, there may be fewer opportunities to change the mortgage structure (for example, borrowing more or altering the term in the same way as a full remortgage).

Buy-to-let on temporary contracts

Buy-to-let decisions are typically assessed differently from residential mortgages.

Instead of focusing primarily on your employment income, lenders often place greater weight on whether the rental income can cover the mortgage payments (and other required margins).

That said, your employment status and income may still be considered, particularly for affordability and overall risk assessment. If you’re exploring buy-to-let while on temporary work, it’s worth ensuring the rental figures and supporting documentation are robust.

Mortgages on temporary contracts with bad credit

Having bad credit doesn’t automatically prevent you from applying. However, lenders will still evaluate your credit history and may treat the application more cautiously.

What often makes the biggest difference is how recent and how serious the issues are. For example:

• Older, minor issues may have less impact than recent defaults or multiple serious adverse markers
• A pattern of missed payments or recent county court judgments can significantly reduce the range of lenders willing to consider the application

Temporary work doesn’t inherently block bad-credit applications, but it can narrow options because lenders may want stronger evidence of stability.

Practical ways to improve your chances

While you can’t control lender criteria, you can improve how your application is presented and how lenders view risk.

• Build the right work history: aim to have the relevant period in the same industry/role type before applying.
• Time your application: if your contract is close to ending, it may be harder to evidence stability.
• Keep credit clean: ensure payments are up to date and address any issues that can be corrected.
• Have your deposit ready: a clear deposit position helps the application move smoothly.
• Be consistent with evidence: provide the documentation the lender expects and ensure it aligns with your employment situation.
• Check your credit file details: being on the electoral roll can support accurate credit reporting.

Key takeaways

• You can often get a residential mortgage on temporary, fixed-term, agency or zero-hours contracts, but lenders usually require a solid work history (often around 12 months, but this varies) and some time left on your current contract.
• Income assessment is based on affordability. For fluctuating income, lenders may average earnings over a longer period and request additional payslips.
• Borrowing is calculated using the lender’s affordability assessment once an annual income figure is established; deposit expectations depend on lender/product rules.
• Remortgaging may be more limited if you don’t meet the lender’s history requirements, sometimes restricting you to staying with your current lender.
• Buy-to-let is assessed differently, with more emphasis on rental income.
• Bad credit doesn’t always prevent an application, but recent and serious adverse history can reduce lender options.

YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

THE FINANCIAL CONDUCT AUTHORITY DOES NOT REGULATE SOME FORMS OF BUY TO LET MORTGAGE.

The information contained within this article was correct at the time of publication but is subject to change.