Zero hour contracts and mortgages

oliveoil99

Can you get a mortgage if you have a zero hour contract, just asking for a friend?

bigadaj

You would probably struggle, if they have a long period showing stability of hours and wage slips then that might help but I wouldn't have thought so.

holly_hobby

I assume he is registered as PAYE, and not on a SE basis ?

As such, with a decent deposit, and (as noted above) if there is proven longevity of regular (and future) hrs and income sufficient to svc the mge reqd, there may be a home - but its a big may.

The problems are (if he has no additional source of income/employment) is that there are no contractual terms re his min salary or min employment hrs with his employer, so he has no control over hrs/income (ie - can only work when asked by the employer), and therefore there is no gte of income in any given period.

Indeed, from his own point of view, I think it would be a bit foolhardy to seek (probably) the biggest debt of his life, on such a variable employment basis, given that one month with little or few hrs, will really put the cat amongst the pigeons.

If he is SE and has SA302s (ie the irregular employment arrangement would not be revealled as the assessment would be on his SE basis), then that may help - but it will all come down to what his declared income has been (some lenders will work on 12 mths semp history, some want as much 3 yrs history).

If any of the above is applicable, then I would strongly advise he seeks an experienced mortgage broker, as it won't be an easy place for either the uninitiated, or himself, and given that he wants to avoid wasting time, effort and failed credit scores in securing a home for this, a broker would be the way to go.

Of course, if he is a straight employee, with no real length of svc/proof of reliable income (and despite a decent deposit), this isn't going to fly, and he should hold off applying for a mge, until he has obtained a permantely employed position with sufficient supporting income .

Hope this helps

Holly

oliveoil99

holly_hobby wrote: »

I assume he is registered as PAYE, and not on a SE basis ?

As such, with a decent deposit, and (as noted above) if there is proven longevity of regular (and future) hrs and income sufficient to svc the mge reqd, there may be a home - but its a big may.

The problems are (if he has no additional source of income/employment) is that there are no contractual terms re his min salary or min employment hrs with his employer, so he has no control over hrs/income (ie - can only work when asked by the employer), and therefore there is no gte of income in any given period.

Indeed, from his own point of view, I think it would be a bit foolhardy to seek (probably) the biggest debt of his life, on such a variable employment basis, given that one month with little or few hrs, will really put the cat amongst the pigeons.

If he is SE and has SA302s (ie the irregular employment arrangement would not be revealled as the assessment would be on his SE basis), then that may help - but it will all come down to what his declared income has been (some lenders will work on 12 mths semp history, some want as much 3 yrs history).

If any of the above is applicable, then I would strongly advise he seeks an experienced mortgage broker, as it won't be an easy place for either the uninitiated, or himself, and given that he wants to avoid wasting time, effort and failed credit scores in securing a home for this, a broker would be the way to go.

Of course, if he is a straight employee, with no real length of svc/proof of reliable income (and despite a decent deposit), this isn't going to fly, and he should hold off applying for a mge, until he has obtained a permantely employed position with sufficient supporting income .

Hope this helps

Holly

Thanks a lot of info to digest will pass it on.

Mikazaru

I was offered a mortgage with Lloyds whilst on a zero hour contract. I'd worked regular, full time hours for over a year and it was an ongoing position though. I wanted to borrow less than £100000 and had a large deposit. The advisor said it wasn't a problem in itself but would probably be a no go with a smaller deposit.

ETA: This was only a offer in principle though, not a full application.