NHS Mortgages Update
Jess Edwards explains NHS mortgages.
Are there specific mortgages tailored to the NHS?
There are no specific products for the NHS but there are plenty of products that are appropriate for NHS workers.
Is it easier to get a mortgage if you work for the NHS?
When you apply for a mortgage the lender checks your employer and wants to be assured that they are a reputable company. Obviously, working for the NHS is a great thing. It’s well established and has been going for 75 years now. So you have a real degree of job security.
That may be factored in when applying for a mortgage. It might not necessarily make it easier, but an NHS worker is normally a professional person with qualifications – and that will have a positive impact on how the lender views your application.
How do I know if I qualify for an NHS mortgage?
As you would with any mortgage, speak to an adviser and we’ll establish your affordability. In the NHS there are different salary bands, led by how qualified and experienced you are within your position.
There are also a lot of enhancements people get, plus overtime. So I would always suggest speaking to a specialist broker, because we understand those different types of incomes that NHS workers receive. We will know where to place each customer, as each lender has different criteria. We know which lenders will accept as much of your income as possible to get you the borrowing that you need.
Can I get a mortgage for five times my salary?
There are even lenders that can go up to six times income. Again. It’s about speaking to a broker and knowing which specific lenders are going to give you that maximum borrowing and for your income.
How much can I borrow and what deposit do I need for an NHS mortgage?
Like all mortgages, borrowing is based on affordability and 95% mortgages are available at the moment, so the minimum is a 5% deposit.
However, we do have one lender that’s currently offering 100% mortgages, which could suit you depending on your specific situation. It’s not necessarily specified to NHS workers but it might work for you, otherwise, the minimum deposit is 5% at the moment.
Do NHS staff mortgages have any restrictions or limitations?
Not really – again, it’s all based on affordability. Restrictions could be things like the contract the person’s on, whether it be fixed term, zero hours and so on. There may be a restriction in place for some lenders on these. Again, though, if you’re speaking to a broker, they’re the best people to place your application based on your individual circumstances.
Do NHS workers get better mortgage rates? Are there special discounts on mortgages for NHS workers?
As I mentioned, there are no specific mortgage products. However, we do have lenders with professional mortgages, designed for doctors and nurses in a professional role. These mortgages can come with reduced product fees or no valuation fees.
At the start of Covid I personally introduced an offer of £100 off my adviser fee for any NHS worker, as a way of thanking the NHS for what they do. So depending on the broker there may be those kinds of incentives. I still offer that £100 off your advisor fee as a thank you to all NHS clients.
What schemes or help are available to NHS employees?
You’re eligible for all the normal schemes, whether it be Help to Buy, shared ownership etc. You’re not eligible just because you work for the NHS, these are open to everyone. It’s just looking at the current situation, what you’re looking to buy and what schemes would be appropriate.
What else can a mortgage broker do to help with NHS mortgages?
As I’ve mentioned already we understand the different types of income. A lot of people get enhancements over time. You might be newly qualified, in which case you will be due band increases within the first few years of being qualified. These can be factored in with different lenders, so I would always suggest speaking to a mortgage broker who has access to multiple providers.
We will help you maximise your borrowing capability based on all those factors to get you the property you want.
Your home may be repossessed if you do not keep up with your mortgage repayments.
Some Buy To Let Mortgages are not regulated by the Financial Conduct Authority.
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