HSBC relaxes zero hours contract rules

Michael Lloyd

September 5, 2019

HSBC has made it easier for workers on ‘zero hours’ contracts to get mortgages with the bank.

It has reduced the amount of continuous employment required with the same employer from two years to one year and replaced the requirement to produce two years’ P60 statements with the latest P60.

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.”

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 lender has reduced the need for statements to be provided to support an application by using other sources and has simplified the documents required to support applicants on or due to go on parental or other leave.

The lender has also cut rates by 0.35%.

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