NHS Mortgages

Who is eligible for an NHS mortgage?

Even though there is no such thing as an NHS mortgage, there are lenders out there who will tailor interest rates to NHS employees or medical staff. In order to be eligible for any NHS discounts you will need to be employed by the NHS or an NHS Trust organisation to take out this type of mortgage. This includes:

  • NHS GP Surgeries
  • NHS Direct
  • Ambulance Trust
  • National Blood Transfusion Service

Usually lenders will offer NHS workers lower deposit options or lower interest rates for your mortgage term. It is worth getting in touch with a Mortgage Broker to find the best lender to fit your current situation. Brokers can access the mortgage market and give you access to products that you cannot find alone.

What type of NHS schemes are available?

Lenders will offer incentives towards NHS staff to try and entice them to take out a mortgage loan with them. There are no such ‘NHS schemes’ but NHS staff can access all the same residential schemes as any other worker.

You may have heard of the ‘key worker mortgage scheme’ yet this scheme ended in 2019 and no longer exists. It was created to help key workers into accommodation but now there are a range of different schemes instead to offer discounts on mortgages.

Whether you are a First Time Buyer or someone looking to invest in a Buy to Let mortgage there will be lenders out there tailoring towards you as a member of the NHS. You can access the same mortgage that everybody else can as well as some Government schemes:

Help to Buy

As a First Time Buyer you will need to gather at least 5% of the property’s value in the form of a deposit. If you gather this together, you can access the Help to Buy scheme where the Government will give you a further 20% to put towards your deposit.

Shared Ownership

If you want to buy but cannot afford to alone, then you can go into a mortgage with shared ownership. You will be able to choose to own between 25% to 90% of the property, some Shared Ownership Schemes only start at 50%. The other share of the property will be owned by a housing association or approved Shared Ownership Scheme and you can buy back the other shares in increments of 5%.

Right to Buy

If you live in a house as a tenant for at least three years then you can qualify for the right to buy scheme. This includes a discount for living in the property, helping you buy your home outright.

New Buy Schemes

This scheme allows borrowers to take out a mortgage with a 5% deposit on new build properties from builders who are taking part in the scheme.

How much can I borrow on a mortgage for NHS Staff?

Typically you will be able to access up to five times your annual salary. This will depend upon your current financial situation however and your current credit rating. It can be worth waiting to get your finances in order before applying for a mortgage to ensure you are getting the best rates you can.

The amount that you will be able to borrow will depend on your credit rating and the lender’s criteria. It isn’t impossible to find a lender if you have bad credit but it can be difficult. It could be worth seeking the advice of a Mortgage Broker.

How do I prove my income as a Doctor?

If you are a PAYE employee under the NHS then it is easy to see a record of your earnings. If you are a locum doctor or a self-employed doctor then you will need to be prepared to bring along proof of your earnings.

At least two years’ worth of accounts will be assessed by your lender to determine if you can afford the repayments on your mortgage. You will need to bring along your SA302 forms too to prove that you have paid tax.

If you do not have two years of accounts, there are other specialist lenders out there who will tailor to your needs. It can sometimes be worth waiting for another year to be able to provide these accounts and access lower interest rates.

It is important to be able to afford the mortgage that you are applying for, too many credit checks can actually affect your credit rating. You need to make sure that you can afford the monthly payments on your mortgage. It is important to budget before applying for a mortgage and having a good plan of what it is you are trying to achieve.

How can a Mortgage Broker help?

A Mortgage Broker can help guide you to the right mortgage option for you based upon your current situation. There are a lot of different mortgage products out there and it can be daunting trying to find the best options for you.

A broker has access to the whole of the mortgage market and can look into deals that you will not be able to find alone. Mortgage advisers can also help you budget and gather your documentation together before approaching a lender.

There are a lot of different products out there and mortgage advisers are authorised and regulated by the Financial Conduct Authority meaning they are qualified to give you the financial advice you need. There is no point in making the mortgage application process any longer than it needs to be, get in touch with a broker today.