Contract probation period and mortgages

probation period

I suspect it is just the terminology that the broker is using. One broker insisted that the current contract must have been extended (probation period??) - I think this was taken as a reference that I was likley to get more work. For my last re-mortgage they just took into account length of time as a contractor and the average income I received.

me gustan los huevos rancheros

Depends on your conviction and the size of your cajones.

Cojones.

Espero que ayuda.

Quite often when contracting for a new client I've found that they prefer the initial contract period to be relatively short, say 3 months, even if they know the project will last longer than that. This enables them to get rid of me (which has never happened, BTW) easily without resorting to imaginative interpretation of the contract clauses. This can be considered as a sort of probationary period and is perhaps what your broker is talking about, but as far as your mortgage lender is concerned its a full blown bona fide contract.

Also, consider giving contractormoney.com a call (advertised on the main page) as they are completely geared towards contractors and understand how we work. I've no association with them, other than I've used them twice and they have been excellent both times.

Thanks to those that answered - much appreciated. The mortgage broker got me a bit worried there so I'm feeling much better now.

No doubt you you'll hear some more numb-nut newbie questions from me soon, so apologies in advance...

Invexis

No point in looking for a simple answer from this bunch of wind-up merchants! :b

I've never had a contract with a probation period in it - though I've heard of them being asked for occasionally. If one is suggested, insist on it being v. short (say 1 week) with a proper review and sign off at the end. As you say, most contracts don't need one, as the client can terminate at very short notice anyway.

But to get to your main point, about the mortgage, you may have to go down the self-certification route to begin with, where stuff like that doesn't usually come in to it, then re-mortgage (to get a cheaper rate) after you've built up the contracting record.

BTW - you'll have to learn a whole new terminology as well - you're not an employee now, you are "in business on your own account" - it's a new mindset - have a look at other contractor sites like Shout99 and the Professional Contractors Group (subscription only) to get an idea.

Its hard to tell without seeing your contract but I can say that none of the contracts Ive ever worked in (in both England and NZ) have had probation periods.

I think its a rather unusual thing to have unless you are in a contract to permie position.

Regards

Mailman

Looks like I'm not going to get a simple yes or no on this one.

You’re asking whether there is a probation clause in a contract that doesn’t even exit yet.

What kind of yes or no answer are you looking for?

Looks like I'm not going to get a simple yes or no on this one. So I'll assume that there "may" be something in the contract but I could probably negotiate it out?

To me it seems a pointless thing to have in there since the client can terminate the contract at any time (with suitable notice period) anyway? At least that was the deal with contractors I've worked with before.

Do you give your window cleaner a probabtion period?

Do you give your mechanic a probation period?

Are you a real business or an employee?

If you are a real business then you have no probation period. If you are tulipe at the job then:

1) They shouldn't have hired your company.

2) They should fire your company.

Just like the way you don't go back to a tulipe mechanic.

Depends on your conviction and the size of your cajones.

If they insist on a short "trial" period tell them that you consider that a short contract and your rate rises accordingly.

Well, I just left my permie role to start contracting but the broker seemed to think that IT contracts would still have a probation period. I don't know if they will or not since I haven't got my first one yet... that's why I'm asking.

"but says the lenders won't give me money while I'm under a probation period."

Probation period; you must still be a permie!

God what is this? Every permie is becoming a contractor and buying a house today? :rolleyes

I'm hoping to start my first contract soon but I'm also hoping to
move house in the coming months too.

I've found a broker who says that I can get a mortgage as a new contractor based on my solid permie IT experience, but says the lenders won't give me money while I'm under a probation period.

How common is it for an IT contract to have a probation period and what sort of lengths do they last? I thought this was a clause in permie contracts although a mate said he had a 6 month probation period when he did a 12 month fixed term contract job once...? Any advice much appreciated.