01 March 2017
The Ipswich has today announced it will accept applications from those on zero hour contracts across its range of products effective 1 March, to help ‘mortgage misfits’ unable to access mainstream lending.
Latest data from ONS found 41% of people employed on zero hours have been with their employer for two years or more, and of all those employed on a zero hour contract the largest employment sectors are accommodation and food (24.7%) and health and social work (21.6%).
In line with the Ipswich’s usual procedure, cases will be underwritten on a manual basis allowing for applications to be considered on individual circumstances. Applicants need to have worked as an employee, on a zero hours basis for at least 18 months and be able to supply standard supporting documents (payslips, P60 etc), and meet usual lending criteria.
Richard Norrington, CEO, Ipswich Building Society, explained “with 34.2% of people employed on a zero hours contract working full time it seems unfair that anyone who can demonstrate a consistent income is being denied the opportunity to be considered for a mortgage. This is another example where our expert underwriters can offer a lifeline to mortgage misfits.”
Data source: ONS Labour Force Survey, published September 2016
For directly authorised firms distribution is currently limited to those based in Suffolk, Norfolk, Essex, Cambridgeshire, Hertfordshire and Bedfordshire – unless a national ‘selected partner’ agreement exists.