Mortgages for NHS Professionals
Firstly, we would like to say a big thank you to all the 1.5 million people working within the NHS. We appreciate all your hard work and long hours supporting us and our families.
So lets start with some marvellous news. As a NHS worker you have plenty of options available to help secure your first or last mortgage.
Whether you’re a Doctor, Nurse, Dentist, Physio and the list goes on…. knowing your options when it comes to owning your own home is incredibly important. Although it may feel overwhelming with an incredible amount information available on the internet and other sources, particularly as a first-time buyer, it’s more simple than you may think.
Is there such a thing as a NHS Mortgage?
If you’re looking for a mortgage specifically designed for you as a NHS employee, you may struggle. Simply put, there isn’t one. Don’t worry though, there are plenty of lenders in the market that help and support you, no matter where you are in your career.
Certain professions in the NHS do come under the ‘Professional Brand’ such as Nurses, Doctors and Dentists and that means you may be entitled to specialist criteria aimed to help and support you, especially if you’re newly qualified. This includes, Locum workers, enhanced affordability and bespoke deals available to people with variable contracts.
So while ‘NHS Mortgages’ are not necessarily a thing, you may be entitled to bespoke criteria and underwriting.
What type of NHS staff mortgages are available?
As we have already explored, there isn’t a specific NHS mortgage product. However, there are plenty of other benefits that might be available you.
As a newly qualified NHS professional you must be excited about where your career will take you. So the last thing you need, is to be told about all the hurdles when applying for a mortgage. We have some good news and want to cover this now.
Higher Affordability: Some lenders in the market will actually offer you greater affordability as a newly qualified member of the NHS. This may mean you can borrow up to 6 times your income.
Locum Doctors: As a locum doctor, you work isn’t guaranteed, so your days and income are flexible. In some circumstances you will need a long track record of this, but there are some products in the market designed with this in mind, so even if you have only just started, a mortgage could be in reach.
Contractors: We understand that some people work for the NHS under contracts, some as day rates, some a fixed terms and some as self employed. While we could write war and peace covering this area, the simple answer is, there are options for you depending on the type of contract you are on, but the more experience you have, the more options become available.
Self Employed: If you are self employed, there are many options for you. Commonly Dentist, Physio’s and other specialist professionals will set up their own practices which is great news for the local communities. Typically, you need at least 1 years finalised accounts to apply for a mortgage. But the more you have the better. If you’re a sole trader, lenders will typically use your net profits, so if you have a £100,000 turnover but have expenses of £50,000 then your usable income is only £50,000 for affordability. This is very similar for Limited Companies, lenders will typically consider your salary taken from the business, plus dividends or net profits.
Are there any government schemes available to support me?
Yes, while the schemes are not designed specially for the NHS, you have access to the Government’s latest schemes under the Help to Buy which include the Equity Loan for new builds where you need a 5% deposit, the Shared Ownership Scheme where some lenders will allow you a mortgage up to 100% of your share and the First Homes Scheme.
The types of schemes available to you will depend on your status as a First Time Buyer.
For more information on these schemes, please visit the Government website by clicking here
How much can I can Borrow?
This is one of the most commonly ask question from all our customers and it depends on your personal circumstances, household income and outgoings and also your credit profile.
In short we cannot tell you without understanding your personal situation.
There are many things you can do, to help maximize your affordability which include;
- Making sure that your credit history is kept up to date and manage your direct debits
- Try and keep your total debt as low as possible. Some lender will decline if your overall debts are more than a certain percentage of your salary, typically 50%.
- Utilize extra hours. Some lenders will use 100% of your overtime, second jobs and various other sources of income beyond your basic salary. (specific criteria applies)
- Completing a joint mortgage with a partner, family member or friend as their income will also be included.
- Save for your deposit, some lenders will offer enhanced affordability if your deposits are bigger than 15% of the properties value.
- As your experience grows you may move up certain pay bands which will naturally increase your lending potential.
Ultimately there is no hard and fast rule, so please speak with a mortgage adviser to find out more.
Can I Still Get A Mortgage With Bad Credit?
If you have bad credit on your digital self, whether that is from a previous IVA or bankruptcy, CCJ’s or defaults, missed payments or debt management plans, then not all is lost, there are specialist lenders that might help. They cannot help everyone, but there could still be plenty of options. We have listed some considerations if you have a tainted credit history;
- Bankruptcy & IVA’s are widely acceptable after they have been discharged for 3 years. However, if you have a larger deposit, then options may be available, if they are more recent.
- Debt management plans are widely accepted as long as they have been place for 12 months or more and you can demonstrate an excellent conduct of the account.
- Defaults & CCJ’s are widely accepted, however, there are many different solutions and options here. So, even if you have something outstanding lenders are willing to take a view.
- Missed payments are widely accepted however, it depends on what the missed payment was on, the reason for the missed payments, how payments have been missed and how long ago.
- Payday Loans are widely accepted if they are over 12 months ago. They are frowned upon when applying for a mortgage as they are considered a last resort option. In all cases we would need to understand why the loan was taken.
In any case, you are always best to seek advice from a mortgage broker, someone who is whole of market will be able to review all your options.
Why Speak with a Robin Mortgage Design Mortgage Adviser?
Why Speak With A Robin Mortgage Design Mortgage Adviser?
Robin Mortgage design is a community of experienced mortgage advisers. We have access to the whole market and have helped people all over the United Kingdom to finance and refinance their properties. So rest assured that with us, you are in safe hands.
Understanding your mortgage options is vital when applying for a mortgage, not only will it help ensure that you understand the mortgage you’re applying for, but will also ensure that you get the right mortgage for your needs.
Speaking with a mortgage broker is also a great idea, as a mortgage broker will be able to review all the lenders available to you and whether you tick all the boxes for that’s lenders criteria. Believe it or not, not every lender has the same policy!
We hope you found this article about Mortgages with one years accounts helpful and we wish you all the best with your mortgage application.
If you would like to discuss your options with a friendly, professional human being, then our team at Robin Mortgage Design would be happy to help. Just give us a call on 0333 242 3863 or visit our contact us page, and fill out our online enquiry form.
Good Luck with your mortgage!
Written by Mark Travell, Director of Robin Mortgage Design
Now it’s time for the legal bit. YOUR HOME BE REPOSSESSED IF YOU DO NOT KEEP UP TO DATE WITH YOUR MORTGAGE PAYMENTS. Robin Mortgage may charge a fee for arranging your mortgage. A typical fee would be £395.00 but could be up £1,495.00 depending on your circumstances.
The information in this blog is only valid for the date it is written.