Mortgage on a 'zero hour contract'

Rondles

Hi,

Me and my boyfriend are currently saving for a deposit on a house. I'm working full time whilst he is finishing his degree and working part time. We'll be looking to buy mid-end 2014.

Just now we both work for the same company on a contract with no guaranteed hours. I work on average 36 paid hours a week, and I'd have pay slips and P60s to show my earnings. My P60 for this tax year will show I've earned £15.5k (based on what pay I'm sitting on now plus the pay from the shifts I'm scheduled until the 5th of April). My boyfriend will have earned ~£8k.

Our budget will be £85k and we'll have a 15-20% deposit depending on if we purchase towards to top end of the budget or less (and how much we'll need to spend on furniture for the place!).

If we could show payslips and P60s showing our earnings, would this make up for the fact that I'm not guaranteed any hours even though I am getting them in reality? Or would it be a case of either waiting for my boyfriend getting a job with his degree (he'd be working full time where we're at now until he found one), or me being promoted into a salaried position at my current job (which might not be for a few years yet)?

dimbo61

You are still what 14/18 months from taking out a mortgage so keep saving and see if you can get a normal contract( or a new job!) in the next 12 months

WishICouldFindMySlippers

Afraid I don't have any info to help you, but if it helps at all you're not the only one out there trying for a mortgage with a 0-hour contract

Hopefully someone more knowledgeable will now see this and be able to add to it a bit more. Although I get the feeling its going to be along the lines of "Talk to a decent broker"...

Thrugelmir

Nature of the employer (industry, size etc) may well help your case along with period of time you've worked there. If you can demonstrate regular income for an extended period then this would give confidence to a lender.

kingstreet

I've never had a zero hour contract job to place, so I don't know what to suggest. Round here, the issue is "piecework" and that's catered for by a few of our local building societies.

mankysheep

i changed jobs last year and im the same as you and earn 18000 last year on 0 hours contract and my wife is a nhs nurse on 28000, i phoned regarding remorgage and they would take my wage into account due to 0 hour contract and only offered us 32000, i couldnt beleive it im on more money now than i was on i previous job, and a combined wage of 40k and offered 32k and we have no cards or debit or ccj. Something wrong there i reckon :mad:

Thrugelmir

mankysheep wrote: »

Something wrong there i reckon :mad:

Who was the lender in your case?

Standy

Thrugelmir wrote: »

Who was the lender in your case?

Whoever they are, their rules are rubbish! Yet another case of complete lack of transparency. You tell them your income, outgoings, loans, credit card stuff and they ask loads of questions - then all you get is we will offer this or that or nowt! And us mortgage holders are too scared to challenge them. They should have to give proper reasons - could have just been they out 'on the lash' the night before for all we know!

kingstreet

mankysheep wrote: »

i changed jobs last year and im the same as you and earn 18000 last year on 0 hours contract and my wife is a nhs nurse on 28000, i phoned regarding remorgage and they would take my wage into account due to 0 hour contract and only offered us 32000, i couldnt beleive it im on more money now than i was on i previous job, and a combined wage of 40k and offered 32k and we have no cards or debit or ccj. Something wrong there i reckon :mad:

Dependents?
Childcare?
Maintenance?
Loan payments?
Shorter term?

If they won't take your income into account, you're classed as a dependent and this will drag back the income multiple, along with any of the above...