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When you get a mortgage, it is your responsibility to prove that you will be able to repay your loan. Unfortunately, a zero-hours contract provides minimum job security and your hours change on a weekly basis, making your financial security difficult to prove. As if mortgages weren’t difficult enough to sort out... Sob!
Often, mortgage providers are sceptical with certain zero-hours contracts – their main concern is whether you will be able to make those monthly repayments that you committed to for the next 25 years or so. This is understandable. You may feel as though you have a steady income but in the eyes of the lender… it is flimsy at best. So if you are dreaming of getting a mortgage and moving house, read on.
When applying, you will need to provide evidence of at least 12 months’ employment. Some lenders will even ask for two years of employment history before even considering your application. Make sure to take evidence on your current employment and past wage slips to show how regular your income is. Although you may not work regular hours, a mortgage lender can get a good idea of your average monthly income from your wage slips.
It could also be helpful to get any evidence from your employer ascertaining to future work hours and employment. This may be difficult on a zero-hours contract, but your employer may be able to write something up as proof of future employment and work hours.
There are things you can do to boost your chances of being accepted. Before applying for a mortgage, you will have already worked at your current job for at least 12-24 months. Keep track of your pay slips as these will be good evidence of a regular income.
Some lenders may ask for proof of future income, which can be a little tricky to come by. However, this is a requirement usually reserved for freelance workers and is unlikely to come up if you’re on a zero-hours contract.
A joint account might be a viable option if you are unsure of your chances to obtain a mortgage going solo. Could be time for the next step in your relationship wink wink!
Mortgage advisors and brokers will have dealt with similar cases to your own in the past and may be able to provide crucial information to help you get a mortgage. They will know the right mortgages to suit you and your situation.
To find a mortgage advisor in your area, visit www.unbiased.co.uk.
Mortgage providers will take both financial situations into account when applying for a joint mortgage with your partner or friend.
A joint application may help with your chances or securing a mortgage, but could also be detrimental to the amount you can borrow.
With any mortgage, having a larger deposit will be beneficial to your application as it will lower the amount you are hoping to borrow. Mortgage providers will also look favourably on your application if your partner or friend will be able to cover mortgage repayments easily in the unfortunate circumstance that you cannot pay.