Can You Get a Mortgage with Irregular Income or a Zero-Hour Contract?

A growing number of people in the UK now work flexible hours, freelance in multiple roles or rely on zero-hour contracts for their income. One of the most common questions is whether lenders will accept this type of earnings. The encouraging news is that getting a mortgage with irregular income or zero-hour contract is possible — but lenders take a closer look at income patterns, long-term stability, and bank statements when making a decision.

This guide explains how lenders assess variable earnings, what proof you need and the steps you can take to strengthen your profile. This article provides general information only and does not offer regulated mortgage advice.

---

Do Lenders Accept Irregular or Zero-Hour Income?

Yes — many lenders will consider irregular or zero-hour income, but criteria vary significantly. Some apply stricter checks because income can fluctuate month to month. Others specialise in flexible employment and assess earnings over a longer period to understand stability.

Lenders look for:

• Evidence that fluctuating income is consistent over time
• A pattern showing minimum monthly earnings
• Bank statements supporting real inflow
• A reliable track record in the same industry

Your income does not need to be identical every month — but it must demonstrate predictability over time.

---

How Lenders Calculate Income for Irregular Earnings

Different lenders use different methods to assess variable income. Here are the most common approaches:

---

1. Average Income Over 3, 6, or 12 Months

Many lenders calculate affordability using:

• 3-month average
• 6-month average
• 12-month average

The longer the assessment period, the better it reflects true income stability.

---

2. Annual Figures for Freelance or Contract Work

If you freelance or have multiple income sources, lenders may look at:

• End-of-year accounts
• Tax calculations and tax year overviews
• Total income across all jobs

Some lenders accept clients with multiple roles as long as you can prove consistent earnings.

---

3. Minimum Guaranteed Working Hours

If your zero-hour contract includes minimum hours, lenders may:

• Accept the contracted minimum
• Add variable overtime or shift bonuses to affordability

---

4. Industry Longevity

If you have been working in the same field for 12+ months, lenders are more confident in income sustainability.

---

What Documents Do You Need?

Documentation is key for applicants with flexible income. Lenders commonly request:

---

For Zero-Hour Workers

• 3–12 months’ payslips
• 3–12 months of bank statements
• Employment contract
• Evidence of consistent shift patterns

---

For Freelancers or Irregular Income Workers

• Tax calculations (SA302s)
• Tax year overviews
• Business accounts (1–3 years)
• Invoices or remittance statements
• Bank statements showing income flow

Some lenders accept only one year of income history — others may require two or three years.

---

How Much Can You Borrow?

Borrowing amounts depend on:

• Your average income
• Credit commitments
• Deposit size
• Bank conduct
• Stability of your employment pattern

Most lenders apply income multiples such as:

• 4× income
• 4.5× income

Some may offer higher multiples for stable earnings, but many are cautious when income is not fixed.

---

Deposit Requirements

A larger deposit always helps, but it’s especially important for flexible workers.

5% Deposit

Possible but requires strong bank conduct and a clean credit file.

10% Deposit

Opens more lender options and is more realistic for irregular income applicants.

15–20% Deposit

Significantly improves affordability and strengthens overall application.

---

What Lenders Check Beyond Income

1. Bank Statement Behaviour

Underwriters assess:

• Regularity of income
• No unarranged overdrafts
• Predictable spending
• No returned direct debits

Good bank conduct is often essential when income varies.

---

2. Industry History

If you have been in the same line of work for an extended period, lenders see this as a positive stability indicator.

---

3. Multiple Income Streams

Some lenders treat multiple jobs as a strength — income diversification can reduce risk.

---

4. Credit File

Clean recent conduct helps considerably. Lenders look at:

• Any missed payments
• High utilisation
• Defaults or CCJs
• Payday loans
• Recent credit applications

---

Common Scenarios Lenders Consider

Scenario 1: Zero-hour contract with steady weekly shifts

If the last 6–12 months show stable hours and income, many lenders will consider full affordability.

---

Scenario 2: Freelancer with one year of accounts

Some lenders may accept a single year if income is predictable.

---

Scenario 3: Multiple part-time jobs

Lenders may combine all income sources if the pattern is consistent.

---

Scenario 4: Applicant with irregular income but strong deposit

A large deposit often offsets income variability.

---

Scenario 5: Zero-hour income plus benefits

Certain benefits can be included in affordability if they are stable and documented.

---

How to Improve Your Chances of Getting Approved

(General Information Only)

1. Build a Reliable Income Track Record

Keep consistent work patterns for at least 6–12 months where possible.

---

2. Maintain Clean Bank Conduct

Avoid:

• Unarranged overdrafts
• Gambling transactions
• Returned direct debits

---

3. Reduce Credit Commitments

Lower monthly repayments increase affordability.

---

4. Save a Bigger Deposit

Even an extra 5% strengthens your application considerably.

---

5. Keep Your Credit Report Accurate

Check Experian, Equifax and TransUnion for outdated or incorrect information.

---

6. Gather Documents Early

Being prepared with payslips, accounts and statements speeds up the process.

---

Summary

Getting a mortgage with irregular income or zero-hour contract is possible, but lenders look closely at:

• Income consistency
• Average earnings
• Bank statement behaviour
• Employment history
• Deposit size
• Credit file

The stronger your recent financial conduct and documentation, the more options become available. Many applicants working flexible hours secure mortgages successfully with the right preparation.

This article provides general information only. For personalised guidance tailored to your situation, regulated mortgage advice is required.