Zero Hours Contract – Need a Mortgage – No Problem!!

It seems zero-hour contracts are here to stay, the number of people employed on zero contracts is rising rapidly over the last few years. According to the ONS Labour Force survey 34% reported working full time and 46% having been with their employer for over two years.
Despite these figures lenders still feel anxious lending to people on these types of contracts due to the uncertainty of the regular income level they could receive long term. Lenders must act responsibly ensuring a borrower can afford their new mortgage payments not only at the time of application but also in the future.
However, all is not lost, even though some lenders may shy away from this nature of employment other lenders are happy to take the ‘risk’. Before applying for a mortgage when on a zero-hour contract it is even more important to have your finances in order. By using trained mortgage underwriters, lenders can assess the ability to pay a loan back by understanding the applicants circumstances on a more personal level, assessing their finances more accurately in person as oppose to using an automated scoring model.
Preparing yourself in advance is imperative, the following key points will help you ensure the best outcome:

  • Evidence of employment history. Most lenders will want to see 18 months employment history
  • A P60 (End of Year Certificate) issued 5th of April annually, this proves how much you have earned during that tax year.
  • Payslips, bank statements and levels of expenditure, balances of loans and credit commitments.
  • A good history of paying your bills on time will certainly be an advantage to any borrower.

Benefits of letting an adviser help you find the right mortgage?
Good mortgage advisers will be qualified and experienced. There is so much information out there to process and using someone highly skilled in this area can be hugely beneficial, it takes the strain out of searching through endless options on the internet, being baffled by the jargon and the sheer number of banks and building societies offering mortgages.
Some brokers charge little or no fee’s (depending on the services offered and your individual circumstances) and choose to get paid by the lender for bringing in the business, saving you even more money.
A good adviser should be able to quickly source a relevant product that fits your needs and budget. They can talk to lenders on your behalf, presenting your application in the best possible light and increase your chances of acceptance. In addition, some lenders will only work with brokers offering intermediary exclusive products, which you would not otherwise have access to if you were to go direct.
Whole of market advisers offer exactly what they say on tin, they can research the market quickly and thoroughly saving you from trawling through every lender one by one leaving behind a trail of failed applications and footprints on your credit score. They have access to the whole of the market (as opposed to one bank or a select few) and the resources to speak to the lender’s underwriters quickly, aiding the speed of applications and allowing them to resolve problems quickly as opposed to waiting days for a call back or an in-branch appointment with a bank.
Regulated by the Financial Conduct Authority (FCA), they are unbiased and a good adviser will usually come by recommendation giving you further peace of mind.
Everystep Financial are fully qualified, whole of market mortgage brokers, with a wealth of knowledge and experience in all types of remortgaging. We are available to visit you at a time convenient to you, in the comfort of your own home. We have offices in Weston-super-Mare and Hanham in Bristol and telephone appointments are also available if you prefer.
Call us to book a free no obligation initial review and let us take the stress out of remortgaging!