Remortgage, zero hour contract

How to remortgage when you are on a zero hour contract

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Remortgage on Zero Hour Contract

Because you’ve already got a mortgage – and you can prove to potential lenders that you have had no issue meeting your repayment schedule in the past – you have a much better chance of securing a new deal, even if you’re currently on a zero hours contract.

That said, there’s a process you will need to follow to ensure your application is accepted by a mortgage provider who can offer you the most competitive rates and terms.

Read on for more information on what it takes to remortgage your property when you’re working on a more flexible and casual basis with your current employer.

When do you need to remortgage?

Remortgaging a property is the process of applying for a mortgage with a new lender without physically moving between locations.

There are a few reasons why you may be considering remortgaging your property. Maybe you simply want to get a better deal and take advantage of cheaper rates elsewhere. Perhaps you need to raise money for home improvements and other large purchases. You can do this by releasing cash from your existing mortgage and upping your monthly repayments or the length of their mortgage term as part of a revised agreement.

Remortgaging can also be a way to consolidate other existing debt and pay it off within your monthly mortgage payments. However, although interest rates on mortgages are often lower than on personal loans, you could end up paying more overall if you choose to take the mortgage out over a longer term.

If you’re looking to remortgage your property, the cost of your new agreement will be one of the biggest factors in your decision-making process. But there are other things to think about – such as whether the mortgage is portable, whether the lender will allow you to overpay on your repayments, what the exit fees are, and whether the term length suits your needs.

How can being on a zero hours contract affect your chances of getting a new 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 remortgage with 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 when offering you a new agreement.

The key 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 remortgage 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?

Get the right advice from day one. Contact CLS Money today to book your free, no-obligation consultation and get quotes from lenders who are happy to accommodate customers on zero hours contracts.

We’ll search the whole of the market to find you a deal that works for you – and what’s more, we’ll guide you through your entire application to ensure you have the best chance of being accepted by your preferred lender.

You’ll find our team to be friendly, approachable and incredibly communicative, and you’ll find it so easy to get in touch throughout your time with us. You can chat with us online using our web chat function, you can message us via email, or you can give us a call to speak with someone directly. We can even arrange in person meetings, if you prefer.

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Gemma May

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