With nearly 1 million people in the UK on zero hour contracts, the thought of getting your foot onto the property ladder may seem like nothing more than a mere dream. However, this doesn’t necessarily have to be the case. Here, we outline 3 simple tips on how to give yourself the best possible chance of landing a mortgage, even though you may be on a zero hour contract.
Find the Right Lender
When you are looking into getting a mortgage, whether you are on a zero hour contract or not, finding the right lender for you is very important. However, what may cause a problem for somebody on a zero hour contract is the fact that a lot of the lenders use an ‘automatic’ underwriting procedure that will automatically kick out any application that falls into the ‘mortgage misfit’ bracket. The way to overcome this problem is to look for a lender that uses a ‘manual’ underwriting procedure that takes into account the personal situation and income circumstances of each applicant.
Keep Good Records
One of the more simple – yet extremely important tips – for somebody on a zero hour contract who is hoping to take their first step onto the property ladder is to be organised. Any lender who is willing to consider your application will want to see at least 3 months worth of payslips and your P60, so keep them safe!
A good way to make sure that you can easily lay your hand on the correct documents may be to get yourself a folder or document box, purely for all of the documents that you may need to help you in your quest to get a mortgage.
Stay as “Stable” as Possible
Another area that can greatly help your cause in getting a mortgage is to appear “stable”. Don’t worry, this doesn’t mean that they are going to sit you through a string of counselling sessions to check your mental health. What they are looking for is stability within your job. So, this means that the longer you can stay with a particular company and working in a particular role, the better. All of these areas really help to build a strong picture for the lenders to be able to work with, as they would find it hard to feel happy lending to somebody that seems to make a habit of swapping employers. Stability is key.
They may like to see a minimum of 18 months with one company, but this will obviously differ from lender to lender. So, try to keep this in mind if you are seriously wanting be considered for a mortgage whilst working on a zero hour contract.
All is Not Lost
And there we have it, all is not lost! 3 simple tips on how to get a mortgage on a zero hour contract. I hope that these tips can help you on your journey to take your first step onto the property ladder.
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