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Zero-hour contract mortgages

Written By:
Myles Robinson - Expert Finance Advisor

Posted: Feb 6, 2023

Fact Checked By:
David Nicholson - Finance Editor

How to get a mortgage if you are on a zero-hour contract?

As mortgage brokers, we often get asked about zero-hour contract mortgages and if they are possible.

The good news, we have mortgage providers lending zero-hours contract mortgages.

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Is it possible to get a mortgage with a zero-hour agreement?


Getting a mortgage with a zero-hours contract can be challenging, but it isn’t impossible.

Our guide to zero-hour mortgages will explain how mortgage lenders evaluate this income type and your chances of getting a mortgage. We also provide advice on where to get the help you need.

The good news is that each lender approves and denies mortgage applications differently. Some lenders will lend to individuals on zero-hours contracts.

This can make it difficult for lenders, so we recommend going directly to a mortgage broker.

Mortgage advice from a specialist helping people with complex incomes is critical. They are familiar with the lenders that offer a zero-hour contract mortgage to workers and can help you get the best mortgage deal possible.

How mortgage lenders see zero-hour contracts

These people may be less favourable to mortgage lenders than someone on a permanent contract or working with the same employer for over twelve months.

Because there’s no guarantee of income, this could put you at risk and increase your likelihood of missing future mortgage payments.

This could mean that certain mortgage providers may not lend to you at all, others might offer you a higher interest rate and ask you to deposit more.

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What are the most critical criteria that mortgage lenders will consider?

The general eligibility criteria of mortgage lenders and the following factors related to your employment will determine whether or not they will consider you for financing.

  • How many months have you been in your current employment contract? Most lenders require that you work at least 12 months in your current position.
  • Experience before you sign your current contract.
    Lenders may be more open to your application if you’ve been in the same industry for a while than if you are new in the field.
  • Which sector/role are you working in?
    Certain professional positions, such as doctors/nurses/barristers, may be approved. Some may have a shorter history.

While some mortgage lenders won’t consider applicants for zero-hour contracts, others will accept those who have previously worked on such contracts.

You don’t have to be discouraged if your zero-hour mortgage application is denied.

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Deposit requirements for zero-hour contract mortgages

Although getting a mortgage approved with a 5% deposit on a zero-hour contract is possible, this is unusual, even if all other aspects of your application are stellar or if you use a scheme like Help to Buy.

Lenders who offer mortgages to zero-hour contract workers will require a minimum of 10% deposit.

However, your income type is not the only factor determining which mortgage lenders will accept your application.

You may require a 15% minimum or more, depending on how severe and recent your credit issues are.

Zero-hour contract mortgage lenders

Various lenders may be willing to consider a zero-hours contract loan mortgage. Each lender has a different lending policy.

You don’t have to be turned down by significant lenders like Nationwide or Natwest as specialist lenders may have more flexible policies. You can take a look at this example:

  • Leeds Building Society will lend to you if your income is stable over 12 months. You must provide proof of this with a P60 and three months’ worth of wage slips.
  • United Trust Bank does not consider zero-hour contract wages as a secondary income. However, they may make exceptions on a case-by-case basis.
  • Norton Home Loans will lend to borrowers with at least 12 months of employment history. However, they may consider borrowers with less experience on a case-by-case basis.
  • Atom Bank requires applicants for zero-hour contracts to have at least 24 months of trading history.

Click the link below. We’ll then introduce you to one of our specialist lenders who work with these applications daily.

Our brokers are familiar with the lenders that offer mortgages on zero-hour contracts to customers and know how to get the best rates possible for people like you.

You will have a much higher chance of mortgage approval when you click the link below.

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A zero-hour contract and bad credit – can I get a mortgage?

Your mortgage options may be less if you have bad credit. However, this doesn’t mean that there is no chance of approval.

Lenders may be available depending upon the severity and age of your credit problems, the amount of equity you have, and the security of employment. The odds of you being approved are generally higher if you have more money and your credit issue is older.

It can have significant consequences depending on the type of credit issue. A few late payments can be easier to ignore than recent bankruptcy or repossession. However, some bad credit mortgage lenders will also consider the reasons for credit problems.


Buy to let mortgages for zero-hour contract workers

It can be challenging to find the right property if you are a landlord with experience or are looking for your first buy-to-let (BTL). Some lenders may require a minimum personal income through employment or self-employment and assess this using a copy of your company accounts/payslips/contract etc.

If you are a first-time buyer of a BTL property and you’re under a zero-hour contract for the duration, the lending policy will be the same as for residential mortgages. Most BTL lenders require a minimum of 12 months’ proof of income before they’ll lend to you.

However, specialist lenders may be able to lend if you have less income proof than 12 months. It’s worth contacting a specialist to learn more.

However, if you are an experienced landlord, you have a higher chance of being approved.

Lending policies can be more flexible than personal income, and some lenders won’t require proof at all. Others may not require any minimum income.


Talk to an expert about zero hour mortgages now

It is essential to seek professional mortgage broker advice before applying for a mortgage.

No matter your employment history, a mortgage broker can help with your mortgage application, deal with the stress and find the best mortgage lender to get you on the property ladder. Start below:

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