Content Writer
Mortgage Advisor & Director
If you’re working on a zero-hour contract, with no defined weekly or monthly hours, you might be wondering whether it’s possible to get a mortgage. Here, we’ll explain if you can get a mortgage on a zero-hour contract, which lenders may be open to this, how much you could borrow, along with where to compare rates and deals.
Can you get a mortgage on a zero hour contract?
Yes, you can get a mortgage on a zero-hour contract, but the process can be more challenging than it is for other types of applicants. Because these contracts don’t guarantee a set number of hours, it can make your income appear less stable to lenders.
Lenders will want to see evidence that your income is consistently reliable over a decent period of time (even if you don’t have this in writing in your contract). This often means looking at at least 12 months of payslips or bank statements to assess your average earnings.
The stronger your track record of consistent work, the better your chances of approval. Some lenders will also place more emphasis on the industry you work in. For example, healthcare or tech may be viewed more favourably than seasonal agricultural or tourism work.
Which lenders offer zero hour contract mortgages?
Several high street lenders will consider applications from borrowers on zero-hour contracts, though lending criteria can differ. Examples of some popular mainstream lenders include:
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Halifax mortgage zero hours contract: Halifax will consider applicants with at least a 12-month working history with a single employer. Proof of all income for the last 12 months is required, and that total income figure is used.
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Barclays zero hour contract mortgage: Barclays may consider zero-hour contracts as long as you can prove sustainability of income at the required level with clear evidence.
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Nationwide zero hour contract mortgage: Nationwide will treat you the same as a temporary worker and most people need at least 12 months history with the same employer, but exceptions can sometimes be made for NHS nurses, NHS locums, and supply teachers.
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Santander zero hour contract mortgage: Santander will consider applicants on zero-hour contracts with 12 months’ income history, but they prefer to have two years of payslips and a letter from your employer.
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Lloyds mortgage zero hour contract: Lloyds Bank is generally willing to consider applicants with at least 12 months’ clear evidence of steady income through reliable employment.
Each lender has slightly different criteria, which is why speaking with a broker can save time and stress. However, if you want to compare rates from 90+ UK lenders for a zero-hour contract mortgage, you can use our free comparison tool to check today’s latest interest rates:
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How do you get a zero hour contract mortgage?
The exact requirements vary depending on the lender, but when you’re applying for a zero-hour contract mortgage, stricter rules can apply. Here’s an idea of what to expect and the key areas lenders will focus on:
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Contract length: Most lenders want to see that you’ve been employed on a zero-hour basis for at least 12 months with the same employer. This provides evidence of consistent work and reduces the perception of instability.
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Time with employer: Being with the same employer or within the same sector for a sustained period works in your favour. Switching roles too frequently may make lenders less confident about your future income and earning potential.
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Your deposit: While it can be possible to use as little as a 5% or 10% deposit, some lenders (particularly high street lenders and banks), prefer larger deposits from zero-hour workers. However, with the right guidance, it’s possible to get a mortgage regardless of the amount you’re able to put down as a deposit.
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Income and affordability: Lenders typically average your earnings over the past 12 months, or sometimes longer, to calculate your affordability. This means lower earning months could be included, which may reduce your borrowing capacity. So it’s important to use a lender that will treat your income structure most favourably.
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Credit history: A clean credit profile can help offset some of the perceived risk associated with a zero-hour contract. If you have a limited credit history or bad credit, you may need to use a specialist bad credit lender.
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Additional income: Some lenders may consider secondary income (such as benefits, part-time jobs, freelance work, or rental income) to strengthen your application and boost your borrowing ability.
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How much can you borrow?
If you’re on a zero-hour contract, how much you can borrow typically depends on your average income. Lenders usually calculate this using 12 months of payslips, and then the average income multiple used by lenders is 4 times to 4.5 times your salary.
This means if your income fluctuates, your borrowing capacity may be lower compared to someone on a fixed salary or wage with contracted hours. Some lenders may also stress-test your affordability by using your lowest earning months as a benchmark.
So, it’s important to demonstrate long-term income consistency and ensure you use the most appropriate lender to maximise how much you can borrow.
Zero hour contract mortgage calculator
Want to check how much you could borrow and what your repayments might look like? Use our free mortgage repayment calculator to get an idea about your payments based on income, deposit size, and property value. This can help set realistic expectations before you start applying for zero-hour contract mortgages.
Why choose Teito for your zero hour contract mortgage?
Getting a mortgage on a zero-hour contract can be more complex than for other types of applicants. Finding the right lender for your specific employment structure can be challenging, and that’s where we can help.
Our advisors have a proven track record helping applicants just like you, to successfully secure a competitive mortgage with flexible and variable incomes. Here are some more reasons why borrowers across the UK choose us to help them get a zero-hour contract mortgage:
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Access to 90+ UK mortgage lenders, including flexible options
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Free initial chat with a mortgage expert, with no obligation to proceed
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Our advisors are 5-star rated on leading review sites
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Fast, tailored recommendations to match your employment income
Ready to compare rates or take advantage of a free, no-obligation chat with a broker who specialises in zero-hour contract mortgages? Get started here.
FAQs
Yes, this is definitely possible. For a buy-to-let mortgage, some lenders require a minimum level of income; however, the projected rental income from the investment property is often more important. If you have a decent deposit and a strong application, it’s certainly realistic to get a buy-to-let mortgage with a zero-hour contract.
Choosing an Adviser
Selecting a qualified and experienced mortgage adviser is of great importance. To choose a suitable adviser, evaluate their qualifications, experience, and reputation, and ensure they are regulated by the Financial Conduct Authority (FCA).
Read reviews from previous clients and make sure they provide a clear explanation of the products and services they offer, as well as the fees and charges associated with them.