However, it`s worth keeping in mind that the larger the deposit you can afford, the better the terms of your mortgage business. With a larger amount to deposit, you can access offers with cheaper interest rates, perhaps a longer launch period, lower fees, and lower monthly repayments. It will also show a greater commitment on your part to the mortgage, encouraging the lender to be more flexible and accept your application. Lenders are certainly cautious when it comes to zero-hour contracts and even more so when the contract is temporary. Some lenders won`t approve zero-hour contract workers at all because candidates are considered too risky. However, the mortgage application process should never be rushed. It will be complicated to be approved, but if you approach it the right way, it is certainly possible. It`s also imperative not to rely entirely on the total interest rate to evaluate the mortgage transactions you review. Behind the interest rate, there are many other terms that could change the way you will or will not benefit from the agreement in the long term. This could include the duration of the introductory transaction, the fees or costs that may be charged, and the prepayment fee. You may find that a mortgage with a slightly higher interest rate might work better for you during the term of the loan due to other peripheral factors.

While the flexibility of a zero-hour contract works great for many people, the fact that you can`t prove a regular full-time income to a mortgage lender can be a problem for some lenders. Trying to find a suitable mortgage lender among the hundreds that exist can be very daunting. A broker has the resources and expertise to do this on your behalf. Zero-hour contracts are more common in industries where work is not always constant or where hours are occasional. For example, delivery trips, warehouse and hospitality work or students who only need work if they are not studying. Getting a zero-hour contract mortgage with bad credit is certainly possible and you may want to talk to a bad loan mortgage broker who might be able to find zero-hour contract mortgage lenders ready to lend you. However, there are steps you can take to strengthen your mortgage application while you have a zero-hour contract. That doesn`t mean you could get approval for a mortgage by simply showing your bank statements to a lender. Your application must be properly “packaged” to increase your chances of success. This means that you need to provide a solid showcase of your real financial potential. Most mortgage lenders, especially large banks, require contractors to work full-time. You want to have the guarantee that you have a regular income stream to meet your monthly repayments.

But that perspective is changing. With the upward trend of zero-hour contracts, there are now more lenders than ever before specializing in this area – there are even specialized zero-hour contract mortgages. This means that with the right approach, the chances of getting a mortgage are higher than ever. Show your income to lenders: Having a zero-hour contract doesn`t mean you don`t make a lot of money. You can also have savings at the bank. This is an opportunity for you to show lenders that you are an accomplished saver and that you can afford to repay the loan. If you have a zero-hour contract and are looking for a purchase to rent a mortgage, this can be difficult as most mortgage lenders require you to have a personal income in case the property is uninhabited for a certain period of time. The advantages of these contracts are the flexibility they give to both the employer and the employee. However, this means that it will be much more difficult for the employee to qualify for a mortgage.

In recent years, much has been said about the difficulties faced by those with zero-hour contracts, especially the challenges they face when trying to close a mortgage or mortgage transaction. If you`re an employee on a zero-hour contract, most lenders will be cautious if you can`t prove longer regular working hours for the same employer (usually at least 12 months, but sometimes up to two years). While many traditional lenders have revised their criteria to be more accommodating to zero contract workers, their ratings for potential borrowers are often based on fairly narrow factors related to income and creditworthiness. The coronavirus outbreak has made it harder to get a mortgage if you have a zero-hour contract. For example, in October 2019, HSBC relaxed its lending criteria for zero-hour workers. But since Covid-19, it has changed its criteria, so that zero-hour income must be part of a joint application and will be limited to certain professions. The accepted professions are: nurses and substitutes at NHS Bank; Non-NHS bank nurses; nursing home workers; Supermarket employees and supermarket suppliers. There are lenders who have no income requirement to buy mortgages. This can be great if you have a zero-hour contract. That being said, lenders may require you to already be a homeowner or have a down payment of 15-25%. Many entrepreneurs, freelancers, and employees appreciate this type of agreement, and it can make sense in many industries where special skills and services are only needed on an ad hoc basis. Interestingly, the Office of National Statistics showed that 34% of people employed on a zero-hour contract worked the equivalent of full-time hours.

Fortunately, those who have a zero-hour contract and apply for a mortgage won`t have any unpleasant surprises when it comes to the amount of deposit you need to put on the mortgage. You`ll have to deal with the same terms as anyone else, and as with any other type of mortgage, the minimum deposit is usually 5% of the property`s value (resulting in a 95% LTV mortgage), although 10% is sometimes preferable. There are specialized lenders when things get really difficult. The interest rates offered may not be as competitive as regular mortgages. This is because lenders need to minimize their risk and can therefore charge higher mortgage fees. Your broker can prepare you for your application and what to expect during your mortgage interview. You`ll be able to determine which lenders offer mortgages for those with zero-hour contracts and find the best deal for your situation. While it`s possible to get a mortgage with a 5% down payment, larger deposits can work in your favor. Larger deposits often mean that the risk for lenders is lower. Since you`re already considered high-risk due to a zero-hour contract, this is a great way to reduce the risk associated with your application. Since the employer is not required to offer work and the employee is not obliged to accept it, it may be more difficult to get a mortgage based solely on a zero-hour contract than if you were on a regular perpetual contract. To determine the best mortgage lender and the best offers available to you, find out more and we will refer you to one of the specialized consultants who handle these requests on a daily basis.

They have deep working relationships with lenders who offer mortgages to customers on zero-hour contracts and know exactly how to get the best rates for people like you. As a first-time owner with a zero-hour contract, you`ll likely need at least 12 months of history in the current position. Lenders will review your contract in detail and look for details to support their assessment. This may include if you have been working in the same industry or with the same employer for several years. There is a wide range of niche market lenders that specialize in meeting the needs of candidates who do not fall into the conventional job category. Your criteria will vary from lender to lender, but they will all review your application for its merits and take a broader view of your income than a traditional lender on the main street. Think Plutus can do it for you. A solid and well-presented application can help reach the lenders` maximum mortgage amount and help you get a main deal. If your application is not well submitted, you could be rejected or at least offer yourself much less. You may need to be an experienced owner with an up-to-date wallet and, in some cases, even guarantees.

If you are an experienced homeowner, you may find it much easier to buy a mortgage with a zero-hour contract. Some mortgage lenders may even offer you a mortgage () without performing personal income checks, in addition to checks on your BTL portfolio income. This can be possible with proper information capture and application packaging. Some lenders require a minimum income, regardless of rental income, although it is the rental yield that is primarily used to assess affordability. You`ll be happy to know that people with zero-hour contracts are offered mortgage interest rates that are no different from other types of businesses, and your application won`t come with a premium or burden based on your employment status. You will not be automatically penalized because your income is based on working under a zero-hour contract. Only the assessment process will be different from that of a traditional worker or regular contractor. The credit crunch around 2008-2009 led banks and street lenders to become much more cautious about who they were lending to, excluding most people from the mortgage market who were outside their strict and conventional criteria. In recent years, many new lenders have entered the market to meet the need for mortgages among the growing number of people on zero-hour contracts, who now make up such a significant part of the workforce that even traditional lenders are now changing their policies to be more accommodating. .