0 hour contract and maternity allowance

deano3

Hi,

My wife has recently returned to her part time work after 9 months on maternity allowance.

She has been on a 0 hour contract for a number of years with the same firm.

In so far as a lender is concerned would this maternity period class as continues employment, or likely to be considered as a new starter?

To be clear she did not qualify for SMP as she only works 1-2 days a week.

Thanks in advance

deano3

Does anyone know?

She's worked for the NHS for 5 years and returned to the job straight away after maternity period.

Verix

I would have thought that this might be a tough one but there'd be no harm in approaching a broker. Most will only charge on receiving the offer (if they do charge at all) and they can then run round the lenders for you to find out if there is a viable option.

cahillg81

Not many lenders are keen on 0hr contracts. The ones that are will look for 2 years P60's normally and a most recent payslip and take an average of that.

deano3

cahillg81 wrote: »

Not many lenders are keen on 0hr contracts. The ones that are will look for 2 years P60's normally and a most recent payslip and take an average of that.

Thank you, I know lenders will be limited but they are about if you fit the criteria.

However I don't know if we fit the criteria as it all depends on if they see the maternity period as finishing work and starting again, or hopefully part of the previous 5 years of employment.

MortgageMamma

I'd have thought on grounds of equal opportunities lenders must be prepared to consider maternity leave as continuous service irrespective of maternity pay...but I'm not 100% so I will call a couple of lenders tomorrow and see what they say and get back to you.

deano3

MortgageMamma wrote: »

I'd have thought on grounds of equal opportunities lenders must be prepared to consider maternity leave as continuous service irrespective of maternity pay...but I'm not 100% so I will call a couple of lenders tomorrow and see what they say and get back to you.

That is incredibly helpfull and much appreciated

MortgageMamma

Not a problem, I'm fairly quiet this week so happy to help.

MM

Kynthia

Maternity leave is not ending employment. Maternity leave, whether you receive any pay or not, has certain legal protections and you are still considered employed. Generally you get to keep your work pass, any employment benefits, and can work up to ten paid KIT days if both the employer and employee agree. So I can't see how anyone could consider it not continous employment unless notice was given and a new job applied for.

deano3

Kynthia wrote: »

Maternity leave is not ending employment. Maternity leave, whether you receive any pay or not, has certain legal protections and you are still considered employed. Generally you get to keep your work pass, any employment benefits, and can work up to ten paid KIT days if both the employer and employee agree. So I can't see how anyone could consider it not continous employment unless notice was given and a new job applied for.

I agree and do hope that will apply to 0 hour contracts.

MortgageMamma

Deano


I have made some enquiries and can confirm that the break for maternity would be considered as continuous employment for a couple of lenders I have spoken to, however, the documentation you would have to provide would be more substantial. You should subject to meeting the lenders criteria on other benchmarks be able to achieve 90% loan to value so you would need a 10% deposit + your legal fees.


Documentation required


2015 P60


2016 P60 (I know this will show vastly reduced income)


Last 12 months payslips from before commencing maternity leave to work out her earnings prior to having baby.


Latest 3 months payslips now back in work (don't worry if shes not been back 3 months)


A letter from your partner saying she has returned to the same employer, same job, same hours as before and that hours will be the same as previous 12 months before maternity.


Hope this helps, don't go it alone on this as there are a lot more factors to be considered - you will need a broker.


MM