Mortgages for those working on Zero Hour contracts can sometimes be a challenge to secure. Most lenders require proof of a stable stream of income in order to consider an application; however, the rise of zero hour contracts over the past few years has presented new opportunities for prospective mortgage holders.

The Office for National Statistics (ONS) defines a zero hour contract as an employment arrangement with no obligation to guarantee any set amount of work. This means that people can be employed on such contracts without the security of a regular income, making it more difficult for lenders to accurately assess their ability to pay back money borrowed.

In order to mitigate this risk, lenders may want borrowers on zero hour contracts to have held a permanent job with the same company for at least 12 months and in some cases, up to two years. The type of role you’ve been employed in may also play a part – if it requires specific skills or qualifications, then this could be beneficial when applying for a mortgage.

Do I need a mortgage broker?

It is possible for those on zero hour contracts to find lenders that are willing to accept their application. A mortgage broker can be invaluable as they will have a firm understanding of which lenders are most likely to consider an application and find the best deals for you. They will also help manage your mortgage application, submitting all relevant information in order to make it as strong as possible.

However, some lenders may require those on zero hour contracts to provide larger deposits than other borrowers, such as a minimum of 10%, and offer higher interest rates. Therefore it is important to shop around for the best deals available and look for specialist lenders who offer tailored mortgages for those on zero hour contracts.

It’s also important to demonstrate a history of responsible money management, so in the months leading up to applying for your mortgage, make sure to keep your spending in check and save as much as possible. This will show lenders that you are capable of managing your finances responsibly. With some careful planning and research, zero hour contract workers can successfully secure a mortgage.

If you are on a zero hour contract and looking for a mortgage, contact us today at 0151 622 0188 or email [email protected].