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On this episode of the mortgage and protection podcast, we’re talking all about NHS Mortgages with Lee and Neezam from Rebus.
Are there specific mortgages tailored to the NHS?
There are specific mortgage Lenders that are more favourable to NHS staff. This is for a number of reasons, for example nurses who receive a bank income or doctors working through an Umbrella Company.
Different lenders take on NHS staff in a number of ways, so effectively, yes, there are mortgages tailored to NHS staff, it’s just a case of finding those lenders who are more favourable to the specific type of NHS employee that you are.
Is it easier to get a mortgage if you work for the NHS?
It really depends on your circumstances in terms of who’s going to be the right lender for you, what kind of income and deposit you have available. There are a lot of variables there so it’s not easier to get a mortgage if you work for the NHS, but it does make it a bit easier for lenders to understand what you do and understand the risks.
NHS nurses staff nurses in my experience and doctors get lots of allowances, or additional pay for unsociable hours, for example. So if you’re working for the NHS and approaching a lender, then at least they understand what the job is and how consistent extra income is going to be.
How do I get an NHS Mortgage?
Speaking to a qualified Mortgage Broker will definitely help you to determine which lenders you are eligible for. How you qualify for an NHS mortgage is similar to criteria for a standard mortgage in terms of the deposit requirement, and the way your income is assessed.
Typically the income can be quite complex, so speaking with a qualified Mortgage Broker quite early on will help you to understand whether you’re eligible for a mortgage, what you can borrow, and what sort of mortgage products will be available to you.
Do NHS workers get better mortgage rates?
There are some lenders that do offer special products and rates for NHS workers. There are a couple of lenders who label their products as Hero Mortgages, which usually include NHS workers, emergency service workers and similar roles. Most don’t, but there are some lenders that do offer better mortgage rates for NHS workers.
Do NHS Mortgages have any restrictions or limitations?
Some banks aren’t as favourable to NHS staff, so in terms of restrictions, it’s just a case of trying to find the right lender for you based on your specific circumstances.
Are there any special discounts on mortgages for NHS workers?
It depends on the lender, most lenders will have a standard range of products that they offer to everyone, regardless of your occupation and employer. Again, speaking with a broker will help you to find out which lenders offer special discounts to NHS workers.
Sometimes you could go to a lender that does offer a special discount for an NHS worker, but actually it’s not necessarily the best mortgage deal for the individual. A broker will help them identify whether or not that is going to be the best solution for them.
Which banks lend to NHS workers?
It depends on the individual again and the type of staff that you are, as well as the way you’re paid and your employment status. There are a number of high street banks and a select few specialist lenders that are more favourable to NHS workers.
How much can you borrow on a NHS Mortgage?
What it really depends on is the key factors that lenders use to assess affordability. For example, what your guaranteed income is, what income you receive over and above your guaranteed income. They also want to know what kind of credit commitments you’ve got and whether you have any financial dependents.
They’ll then look at what deposit you can put down, usually as a percentage. If you’re going to put down the minimum deposit of 5%, then the lender is going to be a bit more cautious when calculating affordability. If you put a larger percentage deposit down, lenders are a bit more relaxed on affordability.
Your credit history will also help a lender identify the maximum you can borrow and help a broker identify which lenders are likely to lend to you, so it’s always recommended that you bring in a credit report when you meet with a Mortgage Broker.
Can I get a mortgage five times my salary as an NHS worker?
Potentially you can, depending on your income, but there are lenders that will offer NHS and emergency services, or key workers, more favourable income multiples in terms of what they can borrow. This is changing all the time, but currently you can get a mortgage five times your salary, although typically it’s four and a half times your salary.
What is the NHS Help to Buy Scheme?
NHS staff do qualify for Help to Buy, as long as they fulfil the eligibility criteria for help to buy, such as being a First Time Buyer. There are also value limits on the property, depending on where you are buying a property in the country. You can find all of the necessary information on the Help to Buy website.
NHS Help to Buy Schemes are absolutely something we help our clients with, and again some lenders will offer specific NHS Help to Buy products and some will just offer generic. Help to Buy products.
Is there any alternative mortgage help out there for NHS staff?
There is a new scheme which is slowly being rolled out across the country called The First Home Scheme, which is very similar to Help to Buy. The first home scheme, however, allows you to purchase a property at a discounted rate of between 30%-50%.
The scheme is only available in certain parts of the country at the moment, but the benefit to NHS staff and with this particular scheme, is that they prioritise key workers and NHS staff for the scheme.
What else should I consider when looking for an NHS Mortgage?
The key thing is finding a lender who understands how you are paid, whether you’re like a doctor working under an Umbrella Company, on a Fixed-term contract, a junior doctor with increasing salaries over the next few years, or you’re a staff nurse who gets lots of additional hours pay, but it’s not guaranteed.
The NHS is one of the biggest employers in the world and there’s lots of different pay structures, so depending on your role, we can help most NHS staff. If we can’t help at the moment, we can help you build a plan to get you to the point where we can.
A Mortgage Broker is able to better understand if you qualify for any of the NHS Mortgage discounts or schemes, and plan as early as possible to ensure the best success for your mortgage application. Also bear in mind that offering an NHS discount doesn’t particularly mean they’re going to be the best lender for you, so speak to a broker to go through all of your options.
Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.