Wednesday 30 January 2019

Does flexible working affect getting a mortgage?

Author: Andrew Page

Flexible working mortgage

Over the last few years, demand for flexible working has increased dramatically across the UK. According to @Real_Business, it makes a big difference:

“Around three quarters of UK employees claim that flexible working benefits would make a job more appealing, and in fact nearly a third would prefer flexible working to a pay rise.”

As a result of this growing demand, an increasing number of employers are beginning to offer flexible working conditions. This means that more workers are having to tackle the question of flexible working when it comes to securing a mortgage.

So how exactly could flexible working impact on your chances of finding a mortgage? We decided to find out.


What is flexible working?

Essentially, flexible working is any type of timetable that differs from standard working hours. While some employees will switch from full to part time, others will alter their full time hours to better fit around childcare and other ongoing commitments. Zero-hours contracts could also be considered flexible working, although they generally give more control to the employer than the employee.

If you’re able to arrive early and leave early, make your own schedule or reduce or increase your hours on demand, you probably have some flexible working conditions at your office. Although this is great news for your quality of life, it might not be so good for your finances. Flexible working can mean you earn less. This can have an impact on your chances of getting a mortgage.


Assessing your income

When you apply for a mortgage, your lender will take an in-depth look at your income to make sure you can afford the loan. If you’re contracted to work a set number of hours every week, even if these hours are flexible, your adaptable employment shouldn’t have too much of an impact on your application. However, if you have a zero-hours contract, or only work for your employer occasionally, your prospective lender may have some more questions about your income.

Before applying for a loan, talk to your employer about your work hours. Ask them to contract you for a minimum number of hours per week so that you can show lenders you have a steady income. If your employer is unable or unwilling to do this, it may impact on your chances of being approved for a loan.

Unless it directly impacts on your finances, flexible working shouldn’t negatively influence your mortgage application. If you’d like more expert advice on securing a loan, or if you’d like to learn more about the various financial products available, we can help. Give us a call today, or get in touch via our site to find out more.

Please be aware that by clicking on to the above links you are leaving the Perception Finance Limited website. Please note that Perception Finance Limited are not responsible for the accuracy of the information contained within the linked site(s) accessible from this page.



Written by: Andrew Page