Matt Hunt from Assured FG joins us on the next episode of the Mortgage & Protection podcast to talk all about NHS Mortgages.
Are there specific mortgages tailored to the NHS?
There is not an exact product such as an NHS mortgage, but some lenders are certainly more favourable to NHS staff in terms of lending criteria, with some offering enhanced rates.
NHS staff are paid in quite weird and wonderful ways and there’s lots of different guaranteed and non-guaranteed incomes, such as sociable hours, bank work and all sorts of extras that a standard nine to five job doesn’t include. You may find some lenders are better suited to this, and therefore, NHS staff.
Is it easier to get a mortgage if you work for the NHS?
Each individual lender has their own circumstances and lending criteria. There are also lenders that consider how NHS staff are paid, their allowances and their overtime etc. It comes down to matching your circumstances to a particular lender to find out who is going to be best suited.
It’s not always straightforward, and not really easier, as such, but if you know how the NHS works and how the lender works, it’s definitely going to help and make the whole thing more easy to navigate.
How do I know if I qualify for an NHS mortgage?
Speak to a broker if you work for the NHS, and they’ll help you to determine which lenders are going to be best suited to your needs and which of those lenders actually have preferential lending criteria, preferential rates or enhanced borrowing for your particular circumstances.
They’ll help you understand what you can borrow, what rates are available, and what lenders are going to take into account when it comes to income. It’s weighing up all options and seeing what’s the most suitable option for you.
Can I get a mortgage five times my salary?
It’s certainly possible. Not all lenders will offer it and some might want you to meet certain minimum incomes before they do offer five times your salary, but you certainly can find this. It’s definitely worth having a chat with a broker, because you might find that a lender that doesn’t specialise in NHS products might also be able to offer five times your salary, but typically you can expect four to four and a half times.
Some lenders can push that depending on job roles. Whether you’re a professional within the NHS or have a certain income, it is definitely available, but it’s not going to be available to everyone.
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We offer complete flexibility around you and can meet either face-to-face or online via a video consultation. And with us all being qualified in our specialist areas and having access to a wide range of lenders, we are able to help you no matter which part of the mortgage journey you are at.
How much can I borrow and what deposit do I need?
In all circumstances, lenders are going to want to see your guaranteed income, additional incomes, and what credit commitments you have. They will also want to know your deposit size, and take all of that, as well as your credit history into their overall lending assessment.
Deposits are anywhere from 5% plus, but the more you can put down the better. The more competitive rates become available to you, some lenders might even lend more when there is a larger deposit, because there’s less risk to that lender. Again, speak to a professional and get it tailored to your circumstances.
Do NHS staff mortgages have any restrictions or limitations?
Not all lenders are going to be favourable to NHS staff. Whether that’s not taking non- guaranteed incomes into account, or not offering preferential products, there’s nothing in particular.
Are there special discounts on mortgages for NHS workers?
Some lenders will have a product range that has slightly favourable rates as a special way of saying ‘thank you’ for your hard work, especially what we’ve seen over the last couple of years.
Not just for NHS workers but the key workers as well, some lenders, such as Kensington, have a specific product. Their range is called ‘the hero range’ and that’s available to all key workers, NHS staff, Police, and Fire departments.
Again, not all lenders will offer this, and just because they’ve got a discounted rate, you might still be able to achieve a better rate elsewhere or find a product more suited to your needs.
What is the NHS Help to Buy Scheme?
It’s similar to the Help to Buy Scheme, which allows you to put 5% deposit down and the government will then put 20% deposit down, so you’re essentially only borrowing 75% off the lender.
It helps in terms of what you can borrow, helping you purchase a higher valued property for the deposit you have available. Some lenders will have special Help to Buy products for NHS staff, but essentially it just helps any First Time Buyer get on the property ladder with a smaller deposit.
How can a Mortgage Broker like Assured FG help somebody if they work for the NHS and are looking for a mortgage?
It’s our job to understand what your goals and aspirations are, particularly with NHS staff because they’re not just a standard nine to five worker. Our job is to understand how NHS pay works and how lenders assess that.
Your local high street bank might not take into account some of the non-guaranteed incomes that are available to NHS staff, but as a broker, we make sure that you’re getting the right product for your circumstances.
We are typically in the office from nine to five-thirty, but we’re available in the evenings or if you wanted an evening appointment or an earlier appointment. We’ve all got access to our emails or phones, and although we’re not a twenty-four hour service, we’re flexible and understand that a lot of people aren’t going to be able to make office hours.
We also work weekends and make use of Whatsapp, emails, Skype, Teams and Zoom to help accommodate everyone and save time for everyone, where possible.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER DEBT SECURED ON IT.