Can I get a Mortgage when I’m on a ‘zero hours’ contract?

Many people might consider it to be impossible to get a mortgage on a zero hours contract and whilst they could be forgiven for thinking so, it is not necessarily true.

Almost a million people in the UK are now on zero hours contracts according to the Office of National Statistics own Labour Force Survey. Of those that said they were on this type of contract a third of them stated that they worked full-time and nearly half have been with their employer for over two years.

The nature of a zero hours contract means that one’s rights to set hours of work and, therefore, a fixed monthly income are restricted. By their very nature, such contracts are potentially precarious and lenders are understandably cautious when considering applicants on such terms of employment.

There is good news though.

If you use an experienced mortgage broker you may find that as long as you have an otherwise good credit history, there is hope. In order to give yourself the best possible chance, you should do some early preparation. This should include;

• Get together your P60 for the last year - or two. A lender will want to see regular employment and income.
• Consider asking your employer for a reference. Anything which helps reinforce your stable employment history can’t hurt your chances.
• Spend some time getting together payslips, bank statements, credit card statements etc and where possible reduce your monthly household costs to a minimum.

Those of us on zero hours contracts fall into a growing group of individuals sometimes know in the industry as ‘mortgage misfits’. The phrase is a catch all for otherwise creditworthy individuals who don’t fit the main lenders standard criteria. The self-employed also fall into this category.

Contact Mortgage Required on 01628 507477 to see how best we can help you secure a mortgage with a zero hours contract.