Those who work on zero hours contracts have been offered a mortgage lifeline by HSBC. The banking giant has reviewed its mortgage and remortgage documentation and relaxed certain conditions that will benefit those who work without the safety of a fixed contract.
Freelancers and zero hours workers are among those who have found it tougher when applying for a mortgage or remortgage, particularly since UK lenders toughened up their lending criteria.
Making it easier to move up housing ladder
HSBC’s review of its criteria aims to make it easier for those who don’t have permanent employment to get on or move up the housing ladder.
The changes include reducing the amount of time in continuous employment from two years to one, while borrowers need only produce one P60, the tax document that shows your earnings for the whole year.
2 million on agency contracts
Aaron Shinwell is head of mortgages and savings at HSBC UK.
He said: “A lot has been said about ‘zero hours’ contracts over the last few years, much of it giving the impression they are inherently bad.
“The reality is that a significant number of people – approaching two million contracts working an average of 25 hours a week – are on zero hours contracts and rely on them for their income.
“The flexibility suits their lives and their lifestyle, and their needs shouldn’t be ignored.
“What we have done is take on board feedback that certain requirements and documentation were hindering zero hours’ contractors’ chances of getting on to the property ladder or remortgaging with us, and as such, our attractive mortgages were not really an option.
“These improvements will benefit all agency workers.”
Competitive conveyancing quotes
Freelance, agency and zero hour contract workers can now shop around for the best mortgage deal.
With Homeward Legal’s help, they can also get the most competitive conveyancing quote that will give them the legal services they need to buy or remortgage.
With one call to 0800 038 6699, our team will match you with the conveyancing solicitor who is right for your transaction. For an instant, online conveyancing quote that puts you in control of both your next legal move and your finances, check out our comparison quotes.