Use Our Zero Hour Contract Mortgage Quiz




Getting a Zero Hour Contract mortgage is complicated in many ways. Some mortgage lenders will not approve applications if its from buyers with 0-hour contract. However, there are some lenders who can approve this mortgage.

According to data from the Office for National Statistics, we can see there has been a significant upward trend in the number of people on a zero-hour contract in the past decade. Currently, the data in 2020 shows there are over 1.05 million people on zero-hours contracts in the UK. Office For National Statistics has also estimated further growth 0 hours contracts in the Uk.

These contracts prove more and more popular as they provide flexibility for both employees and employers. The downside of being on a zero-hour contract is that it can be more challenging to provide proof of steady income to a lender and obtain a mortgage, but it doesn’t mean it’s impossible.

Mortgages for zero-hour contract workers

Mortgages for zero-hour contract workers can be hard to come by, but there are ways of making it easier. One option is to apply for a guarantor mortgage, which allows another person to guarantee your loan and help you get better rates. Another option is to work with a specialist market broker who can help find the best deal from lenders who may be more willing to work with 0-hour contract workers.

In order to make a successful 0-hour contract mortgage application, you need to have a steady income and a good credit score. It’s important to show lenders that you are capable of making regular payments. You should also provide additional evidence such as bank statements, payslips and proof of any other income sources.

Getting accepted for a mortgage with a zero-hour contract is possible, but it requires more patience and planning than when applying for a fixed-term or part-time job. To give yourself the best chance of success, make sure you’re prepared with all the documents and evidence that lenders require.

In this article on 0 hours mortgage, we will explore the topic in detail and answer the frequently asked questions such as 

What is a zero-hours contract?
How to get a mortgage on a zero-hours contract
How much deposit will I need if I am on a zero-hours contract
Can I get a mortgage if I have bad credit history and am on zero hours contract?

Damian Youell

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How We Work

1: We contact you and take down your details, income outgoings, name, address etc.

2: We will research the whole market and email you a detailed quote as well as a list of documents to proceed.

3: You upload the documents and information needed via our channel our online portal.

Feel Free to Contact Us

What is a zero-hours contract?

A zero-hours contract is an agreement between an employer and an employee which does not guarantee a set amount of hours each week. These contracts are typically used in areas where there is high demand for employees, such as hospitality or retail, but are also growing more popular in other sectors.

When work arises, an employer will offer the work to an employee, and it is their decision whether to accept or decline the work. It provides flexibility to employers as they don’t have to pay staff a wage when work levels have reduced, and they are not required. This type of contract is popular in the catering and hospitality industry, where staff levels can fluctuate.

This type of contract is favoured by people who are seeking flexible hours or occasional employment, such as students who wish to work along with their studies, semi-retired people or women who are also raising young children and many more. Although workers on zero-hours contracts have similar rights to other types of work contracts, some workers find they are not offered as many hours as they would want to and can work.

How to get a mortgage on a zero-hours contract

Mortgage Lenders can be wary when it comes to lending to borrowers on zero-hours contracts as they need to assess a borrower’s steady incoming and outgoings to ensure they can afford a mortgage. Since work is not guaranteed and employers are obligated to provide any minimum amount of work, a lender will be concerned whether the borrower can keep up with mortgage payments if in the instance no work is offered.

It is important to have an established track record of work before applying for a mortgage. Every Mortgage lender has different criteria and requirements for an application, but they will most likely want to see a history of payslips and will require a worker to backdate many more months than compared to a regular permanent contract. Usually, lenders require at least six months’ payslips, but 12 months is more likely preferable unless the zero-hours contract work is to supplement another income or apply as a second borrower.

In the past, some mainstream lenders would flat-out refuse a worker on a zero-hours contract, but the good news is since this type of contract has become increasingly popular, many lenders are now open to considering this type of application. Due to these circumstances, it is vital to submit and present lender your application in the best way possible, so seeking expert advice may increase your chances of being accepted and you can start onto the property ladder.

How much deposit will I need if I am on a zero-hours contract?

Generally, the mortgage terms you will be presented with are the same as anyone else and a minimum of 5% deposit may be acceptable by the lender, although 10% might be preferred. It can also depend on our factors, such as if you have bad credit, then a lender might require a 15% deposit. It is worth noting the larger deposit, the better your chances of being accepted for a mortgage loan. It also opens up many more products available to you if your deposit is higher which could mean you’ll receive a better rate and lower your monthly payments. It is always better to contact a bit of expert mortgage advice before starting your application with a poor credit rating.

Can I get a mortgage if I have bad credit history and am on zero hours contract?

It’s not completely impossible to be offered a mortgage if you have adverse credit and are on a zero-hours contract, although it limits the number of lenders to choose from as it could seem riskier to lenders. Some lenders will make a judgement on an independent basis and assess how long ago since the credit issue occurred and the severity of the situation along with your submitted application. For any mortgage application, it is wise to check your credit history early, and there are a number of sites which offer this service for free.

Next steps- Zero-Hour Contract Mortgage

Getting a mortgage on a zero-hours contract may seem complex and difficult, but with the help of professional advice, it can help with making the process easier and match you up quicker with appropriate lenders. A whole market mortgage advisor will know which lenders are more likely to offer mortgages for zero-hours workers and increase your chances of a successful application. Get in touch with us today if you are looking to get a mortgage on a zero-hours contract.

Damian Youell

Feel Free To Start WhatsApp Chat With Us...

How We Work

1: We contact you and take down your details, income outgoings, name, address etc.

2: We will research the whole market and email you a detailed quote as well as a list of documents to proceed.

3: You upload the documents and information needed via our channel our online portal.

Feel Free to Contact Us

FAQs – Zero Hour Contract Mortgage

What does ‘zero’ mean in relation to a zero-hours term contract mortgage?

The term ‘zero hour’ refers to the number of hours worked by an employee. It can be applied to any type of employment, including part-time or full-time work, and it refers to how many hours are actually worked each week. The concept behind this phrase is that employees should not have to put in more than they get out.

Which lenders are good for zero-hours contract mortgages?

The answer depends on what kind of job you do and where you live. If you’re based in London, most major banks should accept applications from people working on zero-hour contracts. However, they won’t necessarily give you the lowest rates. In fact, because they don’t want to lose customers who aren’t able to pay their bills, they tend to charge slightly higher interest than other providers. So, if you’re living outside London, you’d probably be better off going directly to one of the specialist brokers that specialise in helping zero-hour contractors find finance. In addition, a market broker could help you get the most suitable mortgage deal from a specialist lender.

What level of deposit do you need for a zero-hours contract mortgage?

This varies depending on whether or not you’ve got a guarantor. The standard requirement is between 3%-5%. However, some lenders may ask for 6%. You can usually apply without having a guarantor, though, so it really comes down to personal preference.

Is it possible to get a zero-hours mortgage for a first-time buyer?

Yes, it is possible to get a zero-hours mortgage for a first-time buyer, and there are also various government schemes available.

Which lenders are best for zero-hours contract loans?

It’s important to remember that all lenders are different, and therefore we cannot guarantee that every lender will approve your application. We recommend contacting several lenders before deciding which ones suit you best. You can also contact a financial advisor to help you research all 0-hour contract mortgage lenders.

Can I get a zero-hours contract for my business?

If you run a small business, you can use a zero-hours contract to cover staff costs. This would include things like office cleaners, receptionists etc.

Are 0-hour contracts illegal?

There has been no legislation passed regarding zero-hours contracts, but the law states that employers must offer workers at least 28 days notice of termination.

Can you get a mortgage without a contract job?

Yes, although many lenders require an employment history. It’s worth checking with a few lenders to see how they handle these situations. For example, some lenders might allow you to show previous earnings instead of current earnings, while others might expect you to prove continuous employment over an extended period.

Can I get a mortgage with a temporary contract?

Yes, you can get a mortgage with a temporary contract. When applying for a mortgage on a zero-hours contract, it’s important to remember that lenders are more likely to view you positively if you can demonstrate a good track record of regular income. Have proof of regular deposits into your bank account available, and make sure you have all your documentation ready. You should also check that the lender is willing to accept applications from those working on such a contract. If you are interested, you can always contact a mortgage broker to help you with your application.

What are monthly repayments for a mortgage?

Your monthly repayments for a mortgage will depend on the size of the loan, interest rate and length of the repayment period. Generally speaking, you can expect to pay more in interest if your loan is larger, the interest rate is higher, or the repayment period is shorter. You can use an online mortgage calculator to determine how much you need to pay each month based on your circumstances.

About The Author

mortgage broker damian youell

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Damian is an experienced mortgage broker, founder of Ltd and company director. With over a decade working as a mortgage broker he has a strong understanding of hard to place mortgage cases. With hundreds of 5 star client reviews. hundreds of repeat clients his work speaks for himself.

He started as a one man band with the philosophy of putting clients needs ahead of his own. This ethos of offering excellent customer service has helped the business grow over the years. He gets satisfaction on getting cases pushed through to offer stage where other mortgage broker and companies have failed.

Throughout his time as an adviser he has carved out a niche area of advice helping clients with their business protection requirements too. Having helped hundreds of client with Relevant Life Policies, Shareholder Protection Insurance, Keyperson Policies and other important protection requirements of large to small businesses.

At home he is a family man and likes to spend his time with his four children and wife Lisa. He enjoys going on holidays spending time with friends and going for walks.