Regardless of whether you’re an experienced landlord or a brand new investor, getting a Buy to Let mortgage while you’re on a zero-hours contract can be tricky. This is because many lenders still use your personal income as a measure of your eligibility for a loan – and your earnings are likely to be inconsistent when you’re working under this kind of casual arrangement. While mortgage approval isn't as straightforward under a zero-hour contract, there are plenty of mortgage lenders who are happy to lend to those in that position.
It's quite possible to get an investment loan without a permanent contract. You do, however, need to approach providers that are more accepting of your work situation and don’t consider you to be too much of a high risk. As a specialist mortgage broker, CLS Money is ideally placed to find the zero hour contract mortgages and specialist lenders our borrowers are looking for.
What to consider when applying for a Buy to Let mortgage
A Buy to Let (BTL) mortgage is designed for people who are looking to purchase additional property and rent it out in order to make a profit on their initial investment. In the UK, there are no limits on how many properties one person can own – so, as long as you understand your responsibilities and duties as a landlord, it can be an incredibly lucrative way to generate capital.
When looking for a Buy to Let mortgage, price is a very important factor, as it will directly affect the viability of your investment. When working out how much you can afford, you will need to consider how much you will need to set aside for the payments on your residential mortgage (if you have one), as well as any other financial commitments that could affect your ability to keep on top of your BTL mortgage repayments. Remember, too, that Buy to Let deposits are significantly larger than those for a standard residential mortgage. You will usually need a bigger down payment to not only secure a mortgage in the first place but access the most competitive rates.
Buy to Let mortgages have been notoriously difficult to obtain in the past due to stringent income and affordability checks, not to mention volatile markets. For the best chance of success, it’s important to explore all your available options before making a decision on which lender to use.
How will being on a zero-hours contract affect your BTL mortgage application?
Most mortgage providers typically require you to be in full-time work in order to be eligible for a loan. But with more than two million workers in the UK currently employed on zero-hour contracts, lenders are slowly starting to catch up with the state of the market by offering residential and Buy to Let products that are better suited to individuals working to more changeable agreements.
As a zero-hours worker, you may struggle to get your BTL mortgage application accepted by some of the better-known mainstream lenders. High Street lenders in particular will often have concerns that your job is too unstable, and your zero-hours contract income is too unreliable. However, there are plenty of specialist providers out there who will be happy to take your employment status into account.
The key to success is for mortgage applicants to prove to lenders that they are able to make their repayments with no issue. For the best chance of proving eligibility – and securing a deal at favourable rates – you need to work with one of our specialist BTL mortgage brokers. They will be able to introduce you to a pool of lenders who are likely to accept your employment situation and offer you attractive and sustainable mortgage terms on your next investment property.
Why use a mortgage broker?
From working out realistic income multiples and getting accurate quotes to helping you collect all the necessary paperwork ready to present your case, our mortgage brokers can assist you in all kinds of ways throughout the application process.
Plus, we make it ultra-easy to work with us by offering flexible appointment times; allowing you to chat with us online, over the phone, or in-person; and providing you access to your very own web portal, where you’ll be able to upload important documents and check your progress 24/7.
Discover why more than 2,000 customers have already rated us 5 stars for our impeccable service. Contact CLS Money today to book your free initial consultation.
CLS Money help all kinds of borrowers get a mortgage – not just those on a zero-hours contract
Despite providing zero-hours contract mortgages for many of our clients, that's not all we do. Working with all kinds of mortgage lenders means that we're the experts when it comes to unique and unusual situations. We deliver the mortgage approval our clients dream of when they've consistently hit dead-ends with their own choice of mortgage lenders.
So if we don't just help zero-hours contract workers, who else do we help? We provide tailored mortgages for the self-employed, professionals, building contractors, landlords, single parents, those looking for a better rate or just hoping to get on the property ladder with bad credit or unusual employment history. We work with the borrowers most lenders deny at the first step.
We help to lower monthly repayments by finding more favourable interest rates, offer mortgages to those with unpredictable incomes based on an approximate annual income, and even help the buyers with credit reports that don't match the lending criteria of most mortgage lenders.
CLS Money is an exclusive mortgage expert, helping you match the lender criteria whatever your current position. We offer tailored mortgages for unique situations, and that's why our customers are the happiest on the market.