Employment status and affect on Mortgage chances

cjv

Good morning, hoping to get guidance from you kind Brokers that use this forum.

I have been searching for information on my situation but have not returned any definitive results.

I am currently self employed and have been since almost the start of this Tax Year (Apr 9th). In the next month or two I may be moving into zero hour employment on PAYE. This is the same job I have done all year on a self employed basis, same hours, but will now be employed.

Does this highly complicate a Mortgage application? I am looking to make an offer on a New Build around July/August when they launch, shared ownership.

There is also a chance I could work for the "client" direct, which will hopefully be on a permanent contract. I would love this as I assume that would also help with a Mortgage, but I am currently basing my planning on the zero hour route.

ACG

It will have a pretty big impact yes.
On a 0 hours contract, you are going to struggle with no payslips to go off. There may be a lender or 2 who will accept your self assessment (from self employment) as evidence of income, but I think you might struggle with any high street lenders.

cjv

Thanks for your reply.

I should have at least 4-5 payslips by the time I come to making an offer on a property, these will show my pay and deductions, this will be around the same amount each month as I do an average of 55 hours per week.

Do you think that make things easier? or am I still going to struggle.

My main concern is that it will be a zero hours contract and although I will of been working at the same place for well over a year when I need a mortgage, I will of only been employed officially for less than 6 months.

ACG

It may help, but you are still going to have limited options.

cjv

Thanks again. Very disappointing, but I will hold out hope that when I find a Broker they will be able to help me.

If I can get the permanent contracted hours employment hopefully that will work in my favour too.

cjv

Had a talk with my potential employer today. The new job on a permanent contract is looking promising.

If I can get a permanent contract and say 6 months of payslips from my new job, is it breaching any rules to ask a Mortgage Advisor to focus on lenders who do not ask for P60's? As I will be self employed most if this year so would not have a P60 when I come to apply for a Mortgage.

anniecave

My mortgage lender (Nationwide BS) didn't ask me for a P60. They did ask how long I had been with my current employer (this was years in my case) but I was only asked for my current payslip. I wouldn't think it's common to ask for a P60, as I wouldn't think this would be particularly relevant or useful, but I may be wrong.

cjv

Thanks that's encouraging to know lender's do not always request a P60. I guess like most things it is dependant on many variables.

cjv

Rather than post a new thread I will continue this one. I should be in my new employment before the end of April, permanent contracted hours.

Assuming I wont need a mortgage prior to receiving 3 months wage slips from my new job, is that enough along with bank statements for some mortgage lender's?

I won't have a P60 to prove last years income at the time I apply for a mortgage due to being self employed most of this tax year.