What is a zero hour contract mortgage?
Zero hour contract workers typically find it difficult to meet mortgage lender’s borrowing criteria, and are often categorised as ‘Mortgage Misfits’ – those unable to access mainstream lending.
Whilst being on a zero hour contract can enable a flexible approach to working, many encounter challenges when it comes to borrowing precisely because they do not have a contract which guarantees future working hours.
As such many mortgage lenders refuse applications as these applicants cannot prove a sustainable or guaranteed level of income to pass affordability checks and meet mortgage repayments.
How can I boost my chances of getting a mortgage on a zero hour contract?
If you think your income will be enough to sustain a mortgage, and you’ve consistently had a good volume of contracted hours, give yourself the best possible chance of a successful application by taking a couple of simple steps:
- Save your payslips – most lenders will ask to see records of your income over a time period of at least one year, but some can ask to see between 18 months to three years’ worth of employment history if you are on a zero hour contract. By saving your zero hour contract payslips you will be building up evidence that you can afford to make the repayments.
- Keep hold of your P60s – these are especially important for those without fixed hours applying for a mortgage as they demonstrate consistency in your employment.
Do I have to apply for a specialist zero hour mortgage product?
This may differ between lenders, but at Suffolk Building Society we don’t have separate mortgages for zero hour contractors and instead can consider zero hour mortgage applications on our standard range of products. Use our mortgage finder to see what is currently available.