Mortgage on a zero-hour contract

annapotamus

Hi. I wonder if anyone has experience of the situation I'm in and can advise me?

I'm trying to get a mortgage for moving to a bigger property with my boyfriend but my work situation is mixed - I earn about £9k a year from self-employed work, for which I fill in a tax return, and about £21k from a PAYE job for which I am on a zero-hour contract.

I've just talked to a very knowledgeable guy at the Halifax, and it seems that in spite of my possession of a perfect credit history, 10 years' consistent employment in the same industry and equity of £230k from my current property, I am unworthy of a penny of the Halifax's money because I am far too risky a prospect for the poor things to sully themselves with!! The mortgage advisor was very apologetic about this, but if his underwriters refuse to play along there's not much he can do.

It's the zero-hour contract Halifax don't like, even though I can demonstrate a perfect financial record. Halifax will lend us money based on my boyfriend's full-time income, but not nearly as much as we want.

So I wonder if anyone can recommend a lender whoi s more sensible about this sort of thing? The other problem is that some lenders we have spoken to SAY my income will be OK - but the person saying it is almost always a spotty oik whose idea of mortgage advice is to talk us through the online mortgage calculator, and who spends half the time trying to push current accounts on us. Frankly I don't believe the oiks and suspect that we might get half-way through the process and then find that Computer Says No. The Halifax guy, while no use to us, was at least informed and credible.

Currently I am with Alliance & Leicester, on a mortgage I got when I was still employed full-time. If I go in there and update them on my current circumstances, they can't take my existing mortgage away and repossess my flat, can they??? I'm rather paranoid now.

I'd be grateful for any informed advice.

_Andy_

Speak to a whole of market broker.

PasturesNew

annapotamus wrote: »

Currently I am with Alliance & Leicester, on a mortgage I got when I was still employed full-time. If I go in there and update them on my current circumstances, they can't take my existing mortgage away and repossess my flat, can they??? I'm rather paranoid now.

No, that would not happen. You were awarded the mortgage based on the (true) paperwork at the time. The mortgage was awarded, you got the house. After that all they care about is that you continue to pay the mortgage. End of.

gemmab1981

I am having the exact same problem, did you ever get around it and manage to get the money you needed. I am desperate for help now as everywere I turn its the same because I have this stupid zero hour contract. Any help would be more than appreciated, my application is also with halifax!

Senior_Paper_Monitor

This is a pure guess as I've never been come a cross a 'zero hour contract' but I suspect that a small lender with indivudual underwriting could be convinced to look at this as 'a sort of employed'.

A good broker will put in the time investigating this further, discussing this and preparing it with their contact and ensuring you are acceptable before any DIP/aplication.

DO NOT go to any more banks as the 'adviser/consultant/manager' (usually they are not) will not be in a position to match this up with a lender. Pointless DIPs will affect your future chances negatively. Andy's advice is 100% correct.

PasturesNew is also 100% correct - they are the one bank you can safely approach.

gemmab1981

I did go through a broker but they say there is nothing they can do! they asked my area manager to write a letter to confirm that I actually work 20 hours a week and that they are susutainable and ongoing as I have worked these hours for 4 years now, she says she cant do that legally, halifax also say that although my husband is a workshop supervisor and has £10,000 overtime as part of his contract (ie ha has to do overtime hours that equate to £10,000 on top of his annual earnings) that they will only take 30% of it into account. We are completely stuck now and owe nearly £2000 in fees and all for nothing!

Senior_Paper_Monitor

Try another broker - I doubt that Halifax are where you should be !

I really think this placeable (obviously based on the limited information given) - In saying that, I've never handled a 'zero hour contract' as such but don't see why it is inherently different to 'self employed' i.e just a case of convincing the lender that you have the ability to maintain.

As to the husband's overtime - plent of lenders who would view the contract you refer to differently.

The skill of good broker is matching client's circumstances to an appropriate lender's criteria - I'll place a fiver that it can be done (unless you are hiding something) !!

gemmab1981

not hideing any thing, they have all our income info but I am a first time buyer so dont know how all this stuff works, Halifax say new rules came into place recently and they have to abide by them so I am confused. They say that it would be easier if I was self emplyed because at least I would have accounts to show, but my company say they are not obliged to offer me any hours if they dont want to as I supposedly work when I am needed and so they will not commit to saying how many hours I work and that they are on going, their excuse is that if they suddenly dont have hours to give me they could be taken to court for saying I work 20 hours... I think I will be handing my notice in

Senior_Paper_Monitor

I see no reason to 'hand your notice in' (unless you really don't want the job) - it certainly won't help any application in the near future.

I repeat ..... Halifax is not the place to be !

Give a broker the full details and let him/her see what they can do !

Please read what I (and others) have said above !

Thrugelmir

gemmab1981 wrote: »

I think I will be handing my notice in

There is debate as to whether a zero hours contract is a contract of employment in law. As the employer is under no obligation to offer the employee hours nor the employee accept the offered hours. As the employee could possibly work elsewhere on a part time basis or even have a business of their own. In many such situations the employer has a pool of available staff to call on.

Don't give up on this job until you've considered carefully all your options.

gemmab1981

The broker has all the details and has had them from the start but keeps fobbing me off with rubbish and told us in the beggining that it wasnt a problem! we only went with halifax through the broker as he said they are good, the broker is the one telling me what I am asking you so does he have no idea what he is at as he submitted our info to halifax? now he has come back to us and said he cant do any thing if my HO wont confirm what I actually work. I have paid out a lot of money so dont think I can change broker now (they are maxstead and bareham if that means anything to anyone) who do you suggest if halifax are no good, should I ask the broker to go through another company or cut my losses and run?

thrugelmir you are absolutely right, they are under no obligation to me at all and my hours cannot be garanteed so no matter how the broker presented it to a lender it would put them off I think