First time buyer, zero hour contract

How to get your first mortgage while on a zero hour contract

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First Time Buyer on Zero Hours Contract

Lots of people enjoy the flexibility that comes with working on a zero hours contract. However, despite the many benefits of these kinds of arrangements for today’s agile workforce, getting a mortgage without a more formal agreement in place can be particularly challenging.

If you’re looking to purchase your first home, but you’re worried that your work circumstances will affect your eligibility for a mortgage, read on for a list of the things you’ll need to think about as you make your way through the application process. You’ll also find more information on how the mortgage brokers here at CLS Money can help you navigate the market and track down the right deal.

Things to consider as a first time buyer

Lenders define a first time buyer as someone purchasing a property who has never owned a home previously. If you’re a first time buyer, you might not fully understand the mortgage process, so it can be really helpful to speak to an expert to talk you through it. He or she will explain all the key terminology and help you work out how much your monthly repayments will be, as well as how much the mortgage will cost you over the course of your full term.

One key thing to ensure from the start is that you have all the right documents to hand. Any errors, inconsistencies or omissions from your paperwork could be a red flag to your lender and could put you in a poor position when it comes to being accepted for a mortgage.

As a first time buyer, you might not have a strong credit history. Chances are you’ve never had to pay back this kind of debt before. From the lender’s perspective, taking you on as a mortgage customer is a bit of a gamble, because they have no examples of your reliability as a debtor. This is why it’s so important to use a mortgage broker when looking to apply for a first time buyer mortgage. Their expertise will help you meet lender criteria, which in turn will give you a better chance of being accepted for a mortgage and securing your dream home.

How will being on a zero hours contract affect your chances of getting a mortgage?

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 products that are better suited to individuals working to more changeable agreements.

As a zero hours worker, you may struggle to get your mortgage application accepted by some of the better-known lenders – even more so if you are first time buyer with no history of taking out a loan of this size. High Street banks in particular will often have concerns that your job is too unstable, and your 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 to prove to lenders that you’re not a high-risk borrower and will be able to make your repayments with no issue. For the best chance of proving your eligibility – and securing a deal at favourable rates – you need to work with one of our specialist 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.

Why use a mortgage broker?

At CLS Money, we have many years’ experience in securing mortgages for applicants who lenders see as working in less favourable circumstances – including those on zero hours contracts.

We excel in guiding first time buyers through the mortgage process, too. We’ll take the time to understand your situation before presenting you with a series of quotes from suitable lenders. Then, once we’ve identified a mortgage provider who is likely to accept your case, we’ll help you put together a thorough application that has the best chance of being accepted.

Working with us is easy. You can speak with our brokers online, over the phone or in person, and we even offer evening and weekend appointments, if these times will suit you better. As a customer, you will also get access to your own CLS portal, where you can upload documents relating to your application and track your progress.

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Gemma May

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