Nurse mortgages with Jess Edwards.
How do I get a mortgage if I’m a nurse?
It’s exactly the same process as a normal mortgage, although there are other things to factor in with being a nurse – particularly around your income, which we will touch on.
But generally it’s the normal process of speaking to a broker, finding out your affordability and finding where best to be placed with a lender.
What discounts are available for nurses?
There isn’t a particular scheme for the NHS or nurses. You would be eligible for the normal schemes that are widely available for anybody. There may be some discounts on products depending on the lender. You might find there’s a discount on a product fee – and, as I mentioned on the NHS podcast, I provide a discount on my advisor fee for NHS staff and nurses.
What mortgage options are available for nurses?
Nurses are eligible for all the usual mortgage products. You don’t get treated any differently so your mortgage options are the same as for anybody else.
How much can I borrow as a nurse?
Mortgages are based on affordability and that’s the key to finding out how much you can borrow. Some lenders can go to 5.5 or 6 times your income.
The thing to understand is that as a nurse you have different types of income, while a standard employed person just gets a single salary. Obviously nurses do get set pay, but they’re also entitled to enhancements and weekday/night allowances as well, depending on their shifts.
So there are shift allowances and obviously overtime as well. Somebody employed in the usual full time role might not get all those extra bits of income on top. As a nurse, then, that might mean you can borrow more.
Your income won’t necessarily be a straightforward £25,000 a year, for example. That might be topped up with those enhancements. So it’s important to put all that together and to understand where to place it with a lender.
Can agency nurses get a mortgage?
Of course – I’ve done a lot of mortgages for agency nurses. There are different contracts for agency nurses – zero hours or fixed term contracts, and many nurses are employed full time with an agency, or are permanently part time.
A lot of nurses tend to do bank shifts – they’ll do extra bank shifts, normally on a zero hours contract. Some lenders don’t like these contracts, however many lenders will accept all these earnings as long as you’ve a track record on that contract for six months or 12 months. The longer, the better, as evidenced with your P60 and payslips.
Many nurses have standard NHS pay and then take bank work as well – a lot of nurses do this, especially at the moment with the cost of living as it is. People are working extra hours to pay for all those extra costs. But that is something that can be factored in, and the majority of lenders will be happy to use it.
How can a mortgage broker help on nurse mortgages?
I would always recommend seeing a mortgage broker. A nurse could go online with a particular lender and pop in all their income figures. You might put your normal income in, plus enhancements, plus your overtime as your full time income.
But that won’t calculate your affordability properly. The reason I say that is because many lenders will use 100% of your main income, but when it comes to enhancements, overtime or bonuses, they only take a percentage of that. They might only take 60% of it, for example.
Some lenders will take all of it, but without knowing the market, you’re taking a risk. Potentially a lender might say that they will lend you a certain amount, but when they get their payslips in they realise some of it’s overtime and they can’t use all of that income. That will reduce your affordability – which can be quite disheartening.
So a broker is the best option – we know where to place these mortgages, depending on your types of income as an NHS worker and nurse. We’re the best people to figure out an accurate affordability for you.
It saves you being disappointed at a later time – when the lender says they can only offer you a certain amount. With different types of income to consider, some lenders will only take a certain percentage. It’s much better to speak to somebody who does this on a daily basis and knows where to place these particular mortgages.
Your home may be repossessed if you do not keep up with your mortgage repayments.
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