Zero Hours Contract & Mortgage

[confusedhelpme]

Morning

Does anyone have knowledge on zero hours contracts and mortgages?

Can you get a mortgage?

Is it ridiculous interest rates?

Any knowledge would be very welcomed.

Thank you

It's highly unlikely you would get a mortgage based on 0 hour contract work, as the work isn't guaranteed. When you go for a mortgage you need to produce bank statements of your regular income + spends to see your income and outgoing spending habits. They ask for your salary PA. If you didn't get work based on your contract you wouldn't be able to pay the mortgage. This is how the bank would look at it.
Are you looking for a mortgage on your own or have you got a partner that is in full time regular work?

It's OH he has a zero hours contract, but he works regularly and has an annual salary, that is the same net income each month.

You can get fixed interest rates for a period over so many years (typically around 5 years). These typically range from 2-5%. Or you take your chances on a variable interest where it could go up or down, depending on fluctuating market rates. Interest rates have just increased by around 1% I believe for people who aren't on a fixed rate.

Ok great thank you.

So you can get a mortgage on a zero hours contract?

I'm not too sure to be honest. Hopefully someone will be along shortly to help you out!

No, my above mortgage rates answer was based on when people generally get accepted for a mortgage.
I don't know if your partner could.

I'll help you look

Is it a mortgage or a remortgage?
How old are you both?
How much deposit do you have?

You will be able to get a mortgage..and more than likely from a high street lender. It will all depend on the track record working on zero hour contracts (some lenders may want at least a couple of years working on a zero hour contract) and if there was continuous work without gaps.

If your dh is on a zero hours contract but in practice works the same regular hours every month then he has the right to ask for that to be formalised with a proper contract. Employers aren't allowed to keep regular employees on zero hours contracts just to make life easier for themselves - they are only supposed to use them if there is a genuinely fluctuating demand for the work.

@NotSuchASmugMarriedNow1 can you do a rough guide of how much we can borrow?

Deposit £120k
Joint Annual Income £70k

I would say you can borrow £200 to £250k proving you can evidence income going back at least 12 months. If you go to a mortgage broker they will have more up to date knowledge

Excellent thank you!

Depends on the lender but you may be able to use his income provided that it is the secondary income. Meaning you will have to have a permanent contract. Then 12 months history with he same employer will need to be proven, and the figure will most likely be taken from the latest p60.

Contact "Which?" Mortgages, they will find the best mortgage for you, approach lenders etc you only pay a fee if you choose their package, you are free to eg approach the lenders yourself without their help (and no fee) but they truly are amazing

With 12months track record either with the same employer or same type of work, then you have good lenders, High Street lenders, who will accept 100% of this income for Affordability. So potentially upto a 95% mortgage at best rates.