I have a zero hour contract, can I get a mortgage?
When it comes to getting a mortgage these days, most people accept it is a difficult task. However, if you are on a zero-hour contract, you may wonder if obtaining a mortgage is an impossible task. With the number of people working with a zero-hour contract on the rise, this is an essential issue for a growing number of people in the United Kingdom.
ONS Labour Force Survey figures suggested that in ten years dating to 2017, there was an increase of 460% of people operating with a zero-hour contract. It is not as if these people are only working short-term or are students; there are many people in long-term positions with companies operating with this sort of contract. They may be able to get a lot of hours per week, but with no guarantee of what next week or month will bring, let alone the year ahead, it is no surprise people think they aren’t going to meet the criteria imposed by mortgage lenders.
Of course, there is always a market, and some professionals in the industry specialise in finding deals and suitable offers for people who need a bit more help. These professionals have sometimes been classed as “mortgage misfits”, playing a critical role in helping people find a mortgage when the leading lenders aren’t forthcoming or helpful.
It is easy to see why many lenders use automated scoring to review applications. This approach speeds up the process, and it removes human error. If a company sets the criteria, there is a straightforward decision to make as to whether an applicant is offered a mortgage, and at what level. However, this doesn’t work for everyone, which is why some lenders, utilising the skills and expertise of trained underwriters, work on the information provided by an applicant. If your circumstances dictate you are unlikely to receive a standard mortgage offer, you need to make your case to a more sympathetic lender.
To ensure you make the best possible application when applying for a mortgage, you should collect the following items:
Evidence of your employment history
If you can show you have a sustained record of employment, and that it is a consistent record of jobs, you stand a better chance of appealing to a mortgage lender. You should provide them with evidence of your employment for at least 18 months, but be prepared to offer longer if you can.
Gather documents and offer them to the lender
Some of the materials you should have ready so you can provide to the lender include your P60, which is your end of year certificate which is issued to taxpayers at the end of the financial year. This information details how much money you earned in a tax year, and will help a lender make an informed decision about your suitability for a mortgage.
You should also offer payslips, bank statements, a detailed breakdown of your expenditure and you should provide the balance for any outstanding loans or credit cards you hold.
If you are honest and upfront about your position and make a strong case in your defence, you will enhance your chances of obtaining a mortgage, even if you are on a zero-hour contract.
Obtaining a mortgage when you are on a zero-hour contract is challenging, but it is far from impossible. For the best advice and guidance, please contact us and we will do our best to assist you.
Your home may be repossessed if you do not keep up repayments on your mortgage