With over 1 million people working on zero-hour contracts in the UK, lenders have adapted their criteria to accommodate this growing workforce, and recent changes have made the process even more accessible.
Recent improvements make mortgages more accessible
With a 65% increase in the number of UK workers on zero-hour contracts in the last ten years, the mortgage landscape has had to adapt. In 2019, HSBC UK reduced their employment requirements from two years to just one, showing that big lenders are starting to take this type of work more seriously.
Good news if you work in healthcare or education
Nearly a quarter (23.1%) of zero-hour workers are in health and social services, with education close behind. Lenders look more favorably on these professions because there's always demand for skilled workers like nurses, carers, and teachers. Many will even accept a shorter work history if you're in one of these professions.
What lenders want to see
Most lenders now require at least 12 months of continuous employment with the same employer, though some consider applications with as little as six months of history. The key documents you'll need include:
- 12-24 months of payslips showing consistent work patterns
- Your latest P60 demonstrating annual earnings
- Copy of your zero-hour contract
- Explanation of any employment gaps (most lenders allow up to six weeks)
Deposit and rate realities
Being on a zero-hour contract doesn’t automatically mean you need a bigger deposit or get charged higher interest rates. However, some lenders might ask for more paperwork to prove your income is steady, which could affect whether they approve your application. The key factor is demonstrating income stability rather than providing larger deposits.
Lender landscape: Who says yes?
With the recent growth in this type of employment, zero-hour workers now have more homeownership opportunities than ever. Most high street lenders are adapting their policies rather than forcing applicants to use specialist lenders. However, each lender has specific criteria regarding employment history and documentation requirements.
Boosting your chances of approval
Here's how to put yourself in the best position:
- Show you're reliable by keeping consistent work patterns and maintaining a good credit score. Lenders usually offer around 4.5 times your yearly earnings, so make sure you choose lenders who count all of your zero-hour income.
- Apply with your partner if they have a steady job – their stable employment can make your application much stronger.
- Get your finances in order by paying down credit cards and loans where you can and try to save regularly to show you manage money well.
The bottom line
Don't let your contract type discourage homeownership. With proper preparation, the right lender match, and professional guidance, mortgage approval is very achievable.
Ready to explore your mortgage options? Call us today on 0345 450 4660.
