Zero-hour contract workers typically face difficulty when applying for a mortgage because they do not have fixed contracted hours of employment. Office of National Statistics data for April to June 2016 revealed that more than a third of zero-contract employees actually worked full time, with 41% having been with their employer for over two years.
Ipswich Building Society takes the personal situation and income circumstances of each applicant into account by applying its manual underwriting procedures to all mortgage applications. Zero-hour workers need to have a minimum of 18 months’ history of working within their role and be able to supply their P60 and three months’ payslips along with our other standard supporting documents in order to be assessed for a loan.
Richard Norrington, chief executive of Ipswich Building Society, said: “Zero-hour contract workers have limited choices for mortgage borrowing. We are continuing to improve our products and introduce new programmes to help those who are creditworthy, yet marginalised by mainstream mortgage lenders.
“We believe that ‘mortgage misfits’, such as those who are on a zero-hour contract and can demonstrate a consistent income, should have the same level of options and access to the mortgage market as any other applicant.”
The change has been applied across all products to direct applicants and selected brokers.