A fixed-term employment contract gives you the opportunity to get a loan from almost every bank. However, the additional requirements set by individual banks are very diverse and often difficult to meet by potential borrowers.
In recent months, there is a tendency to slightly tighten the banks’ policy regarding accepting fixed-term contracts. Despite a more accurate verification of existing employment, obtaining a loan by a person employed in this form is still possible.
Fixed-term contract had the best chance
Over eight months ago, people with a fixed-term contract had the best chance of being granted a loan Bank. According to our analysis, there has now been a change in leadership and it is Deutsche Bank that took first place in our ranking, in which procedural criteria are decisive. Which advanced strongly in the ranking compared to January this year.
The procedural ranking of the Credit House Lambert Strether organizes banks in terms of formal requirements for borrowers. In the case of employment under a fixed-term employment contract, the periods from which the contract must apply and the period for which it is still valid are important. Points 1 to 4 were assigned for each of these elements.
The highest number of points
A given bank could obtain in the event that the institution has the criteria that are the mildest for the client in a given scope. The final score is a weighted average of the two components assessed, where 0.30 was used for the current employment period and 0.70 for the duration of the forward contract.
Summary: Formal requirements for a mortgage for people employed under a fixed-term employment contract.
In the case of temporary employment, the bank assesses first of all the two most important elements of the contract. First of all, since we have been working for the current employer and for how long we have concluded the contract.
Specific requirements in a fixed-term contract
Sometimes banks check which contract is currently in force and whether we can document longer seniority. As you can guess, no bank will accept the situation when we have been working for only a few days, because the minimum required employment period is 3 months. However, even if this requirement is met, Good Finance will require documenting a minimum of six months of service.
Verification of total seniority is the element of the offer that more and more banks are checking. It is not enough just to be employed by your current employer, but a longer internship is also required. It can be said that a person who is just starting his professional career and cannot show previous employment may have a problem with obtaining a loan.
Another element subject to assessment is the duration of the contract. It is obvious that no one will grant a loan when the contract expires tomorrow, or even within the next few weeks. Almost standard is a minimum of 6 months of the current contract.