NHS Mortgage For Healthcare Workers
| Free Mortgage Broker | |||
 | |||
| TRUSTED MORTGAGE BROKER | |||
|
Mortgage for NHS Professionals
Many first-time buyers struggle to raise a deposit for their first property purchase. Owning a property is getting more difficult for many people in the UK and NHS workers are no exception to that.
The NHS employs over 1.5 million people in the UK which makes them largest employer in our country.
With the current living crisis and many people’s income being stagnated for a few years, mortgages for NHS staff can be very difficult.
Here is a our guide to NHS mortgages to help you understand how someone working for the NHS can own a property by specifically looking for NHS mortgages.
What is an NHS mortgage?
If you are looking for an NHS mortgage as a First-time buyer or for remortgage then you may have realised that NHS mortgage are not a standalone mortgage product. An NHS mortgage refers to a situation wherein a mortgage deal is offered to an NHS employee. There used to be an NHS mortgage scheme for NHS Staff but those have been discontinued by lenders.
Few mortgage lenders offer lower interest rates and better mortgage terms to borrowers who are specifically NHS employees. However, not all lenders provide these services. If you work for the NHS or are a key worker make sure you look for a mortgage advisor or mortgage broker who can find you the most suitable lender for you.
Who is Eligible for NHS Mortgages?
People working on a full-time basis or on permanent contracts with the following NHS components are eligible for NHS mortgages:
• GP Surgeries
• Primary Care Trust
• Ambulance Trust
• National Blood Transfusion Service
• NHS Direct
• Health Protection Agency
• Mental Healthcare and Social Care Trusts
• NHS Identified Dental Practices
What are the different types of NHS Mortgages?
As mentioned above, an NHS mortgage is not a standalone mortgage product. NHS mortgages can refer to any type of conventional mortgage. The only difference between a conventional mortgage and an NHS mortgage is that NHS mortgages are given to NHS employees and often carry exclusive benefits to help them with their property purchase.
Depending on their requirements, NHS employees can opt for a first time buyer mortgage, a home mover mortgage or even a buy to let.
Fixed Rate Mortgage: As the name suggests, your mortgage will be fixed for 2,3 or 5 years. These are the most common mortgages preferred by most home buyers. At the end of the fixed term the mortgage can be fixed again for the term.
Tracker Rate Mortgage: This mortgage type tracks the Bank of England base rate. If the rates drop your tracker rate also drops and vice versa. Tracker rate mortgages are fixed for certain terms. During reduced interest rate periods this was a very popular mortgage.
Variable Rate Mortgage: These mortgages are rare as most lenders offer the fixed rate or tracker rate mortgage, but few lenders offer a variable rate. After the end of the fixed term the borrower can choose to fix the mortgage or stay on the lenders variable rate mortgage. These are the most expensive mortgage rates.
What are the schemes available for NHS staff?
While the ‘Help to Buy’ scheme has stopped, NHS staff can take advantage of other government schemes designed for key workers.
Here are a few of these schemes:
Shared Ownership Scheme
While not exclusive to NHS employees, the shared ownership scheme is beneficial for borrowers trying to get on the property ladder. It lets you purchase a specific share of a property and pay rent for the remaining shares.
This allows borrowers to own a property in an affordable way. NHS employees buying through shared ownership can increase their ownership shares by purchasing them, called staircasing.
The ‘First Homes’ Scheme
This is a scheme designed to consider key workers like NHS staff and local young homebuyers. The First Homes scheme provides a discount of 30% to 50% to individuals earning less than £80,000 (£90,000 in London) on a few specific new builds.
This scheme has some key criteria like if you are a key worker or if you live in the area of the property. Your deposit should be a minimum of 5%, and you must be a first time buyer.
Right to buy
This is another major scheme that isn’t exclusive to NHS employees but makes it easier for them to purchase properties. Right to buy allows people living in council-owned properties to buy them at discounted rates. This makes these properties more affordable to homebuyers earning lower incomes, including NHS employees.
How much can you borrow with an NHS Mortgage?
Similar to any other mortgage, the amount NHS employees can borrow depends on the lenders’ assessment of their affordability. Lenders consider the borrowers’ annual income and multiply it by 4.5 to 4.75 to calculate the amount the borrower can borrow with an NHS mortgage.
In certain cases, lenders may also provide mortgages up to 5.5 or 6 times the borrower’s salary. They will also consider an applicant’s credit history and the presence of bad credit before calculating the amount they can borrow.
If you are planning to get an NHS mortgage, please note that the benefits offered by these mortgages are largely limited to interest rates. They do not provide NHS employees with a special privilege to borrow more from mortgage lenders as compared to other borrowers.
NHS mortgages for visa holders.
Around 19% of NHS staff aren’t British nationals, so a working visa enables them to work for the NHS. But it still makes it a little challenging to own a property on a mortgage if they do not have an Indefinite leave to remain visa.
Not many lenders prefer borrowers with a work visa and have certain criteria that need to be met , like the time spent in the UK, the deposit they have and income they earn. Working with mortgage brokers can help to get a NHS mortgage on a working visa .
Speak to a Mortgage Advisor.
NHS workers are paid in different bands. The salary is made up of different elements like basic income, shift allowance, area allowance and overtime. Many mortgage lenders have different criteria of income calculation.
Working with experienced mortgage brokers can help you get the maximum borrowing amount with your income. They are well aware of different government schemes and can help you secure the mortgage just right for your circumstances.
MariannaFS offers fee free mortgage advice so get in touch with us to discuss your mortgage needs.
