More and more of us are shunning the 9 to 5 in favour of more flexible agreements that allow us to work around our other responsibilities. But while zero-hour contracts are benefiting millions of workers across the country, they do make life a little harder for those who want to move home and secure a mortgage on their new property.
There’s nothing stopping you from securing a mortgage if you’re not in guaranteed employment – but the road to success may be a little longer. Read on for more information on what to expect from the mortgage process as a zero-hours employee, and how our brokers can support you in finding you the right deal from the right provider.
Things to consider when moving between properties
A home mover is someone who already has a mortgaged or owned home and is moving into a new property. As a home mover, you can choose to ‘port’ your mortgage with your existing lender or apply for a mortgage with a different provider. Your mortgage broker will be able to advise you on the best option, based on your repayment history and the terms of your current agreement.
As a home mover, you are likely to have some general knowledge when it comes to finding the right mortgage and dealing with brokers. Whilst costs are important to you, you’re focusing on other factors for your move, such as achieving new lifestyle goals; upsizing to meet the demands of your growing family, or changing location due to work or family commitments.
You’re in a much stronger position than a first-time buyer because you have evidence of your ability to pay your mortgage repayments in full and on time, every month. This will put you in a favourable position when it comes to getting a good interest rate. You’re also likely to have built up some equity in your existing property, meaning you’ll be entering into a new agreement with a better loan-to-value (LTV) than before.
One of the most common problems that home movers experience is being stuck in a chain. This is the term used for a sequence of linked home purchases who are reliant on each other for the preceding and succeeding purchases; for example, those buying your house are reliant on you completing on your new home in order to move into your old one.
It’s important to stay in contact with your solicitor throughout the moving process to ensure everyone is kept up to date with potential move dates and any delays are communicated up and down the chain.
How will being on a zero-hour contract affect your chances of getting a mortgage?
Most mortgage lenders 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 with many zero-hours contract workers, you may struggle to get your mortgage application accepted by some of the better-known lenders. 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, accepting you for one of their zero hour contract mortgages.
The key to success is to prove to lenders that, despite the fact you work on a zero hours contract, 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. With proof of your budget and typical earnings, backed by bank statements and a few other sources, working zero hour contracts doesn't have to mean the end of your mortgage application.
Every day we see lenders offer mortgages to people from all walks of life, whatever their personal income and whether they've got a full time contract or not. Our lenders assess the bigger picture, producing mortgage deals that our zero hour contract workers are more than happy to accept.
Why use a mortgage broker?
Don’t wait until later in the process. Contact the mortgage brokers here at CLS Money today to discuss your mortgage options as a zero hours contractor in more detail, and get free, no-obligation quotes from lenders that will be more sympathetic to your situation.
We’ve helped thousands of home movers secure fantastic rates and terms with companies that are often prepared to take a view on more unusual or complex income structures.
We know you’re busy, and your working hours are often erratic – which is why we keep plenty of evening and weekend appointments available. You can chat with us online, over the phone, or in person, depending on what’s most convenient.
CLS can help with every unique mortgage situation
We're not just here to help home movers achieve zero-hour contract mortgages, we're here to help everyone get the mortgage they deserve whatever their situation. We offer expert mortgage advice for every type of residential mortgage as well as commercial and buy-to-let options too. Whether you want to reduce your mortgage payments or have a complicated employment history, we find the right mortgage lender for you.
Our lenders recognise that not everyone fits into the usual check-boxes – something the typical mainstream lender fails to acknowledge. As a leading specialist mortgage broker, we explore the entire mortgage market to match each borrower with their ideal lender, often achieving interest rates they couldn't imagine achieving from a regular mortgage.
Other areas where we regularly help borrowers find their ideal mortgage lenders:
Expert advice for any mortgage application process
Mortgage approval for self-employed, professionals, and problematic working positions
Bad credit mortgages
First-time buyer mortgages
Mortgage deals that help you save money
High risk borrower mortgages
Larger deposit mortgages
Mortgages for borrowers with credit issues
We have years of experience and an in-depth knowledge of the mortgage market. Call us today to discuss unusual or regular mortgages whatever your particular circumstances.