You are here: Home - Mortgages -

Mortgage help for zero hours workers

Written by: Emma Lunn
HSBC is relaxing its criteria for zero hours contract workers looking to get on to, or move up, the property ladder.

Following a review of the documentation required to support mortgage and remortgage applications and feedback from mortgage brokers and customers, HSBC has changed certain conditions for evidential documents and made earnings calculations more accurate.

Improvements include reducing the amount of continuous employment required with the same employer from two years to one year, plus replacing the requirement to produce two years’ P60 statements with just the latest P60.

In order to have greater visibility of current earnings and produce a more accurate affordability assessment, the last three payslips will be required instead of one.

The bank has also refreshed interest rates on its mortgage range, with rate cuts of up to 0.35 per cent.

Aaron Shinwell, head of mortgages and savings at HSBC UK, 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 contractors 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 onto 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.”

HSBC has also reviewed its mortgage application process to reduce the time it takes to get a mortgage with the bank. The average time to get an offer has been reduced from five weeks to about 10 days, reducing to five days if the application is done through a branch adviser.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Coronavirus and your finances: what help can you get in the second lockdown?

News and updates on everything to do with coronavirus and your personal finances.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
TripAdvisor failing to stop hotel rankings being boosted by fake reviews

A report by Which? has found a flood of fake and suspicious five-star reviews which artificially boost the ratings of...