NHS Mortgage
- Access to competitive rates and some you can't get direct
- You will not be pushed from one adviser to another
- Quality, professional mortgage advice that you can trust
What's On This Page?
Get In Touch
Mortgages For Professionals with complex incomes through the main high street lenders
High street lenders typically provide more appealing rates, making them the preferred choice for many professionals seeking mortgage solutions. However, navigating the complexities of professional incomes can present challenges in securing loans from these lenders.
Professionals often assume they must seek alternative lenders due to the intricacies of their income streams. Yet, armed with a deep understanding of various payment structures, we confidently facilitate successful mortgage applications with high street lenders.
In fact, a substantial 93.4% of our mortgage applications are seamlessly processed through reputable high street lenders, showcasing our expertise in navigating complex income scenarios.
NHS Mortgage
Brian talks us through the mortgage process for NHS workers.
Can you explain the mortgage application process for an NHS worker?
Basically, if a client is employed by the NHS, it’s the same as with other employed people. The key difference with NHS employees is that often additional payments feature on payslips – such as on-call payments or weekend work.
There’s also the ability for NHS staff to do bank work. Bank work is ad hoc hours and often a source of secondary income. You might have a main nursing contract, and you do some bank work ad hoc as required.
We do see some clients where all their income is from bank work. There’s no basic contract. Both are fine for a mortgage. It’s just that the documentation required will differ based on the circumstances.
What’s important is that lenders accept different parts of the income – and that’s really where you need to speak to an expert. We know which lenders are prepared to take all of your income into account in calculating your mortgage borrowing.
What documentation do I need to provide for a mortgage as an NHS worker?
You need to be able to identify yourself for money laundering purposes, with your passport or driving licence. Lenders generally want to see three months’ bank statements and three months’ pay slips.
They’re looking to ensure that the pay slip income matches the bank statements and all credit commitments have been declared accurately.
If you do irregular bank work, lenders sometimes ask for six months of pay slips to show how much the payments have varied. They’ll generally take an average of either the last three months’ income or six months’ income, depending on the lender.
How can I find a lender that offers a mortgage as someone who works for the NHS?
All lenders will consider you, but some don’t really understand the various income streams that make up somebody’s total package. You may have on-call payments or bank work – so talk to a broker, and ideally one that specialises in the medical sector. To make it easier, get some advice.
What are the typical interest rates and loan terms for a mortgage as someone who works for the NHS?
All lenders will price a mortgage according to their perceived risk. There are no typical rates for an NHS employee compared to a non-NHS employee.
Every now and then a lender launches a key worker product, but they’re not available all the time. So you need to talk to somebody who’s got their finger on the mortgage pulse.
As you put in more deposit towards a purchase or a remortgage, the lenders feel less risk, so your prices and rates will be better.
Can I use a mortgage to buy a property jointly with someone else as an NHS worker?
Absolutely no issues at all here. It’s not treated any differently. You can buy jointly with somebody else, whether they are an NHS worker or not.
Speak To an Expert
What happens if I’m no longer employed by the NHS after obtaining a mortgage?
Providing you’ve told the lender upfront if you’re aware of any potential change in circumstances, there are no issues. The lender is aware of the circumstances and they’ve already reflected that.
Lenders recognise that people’s circumstances change all the time. When you’re applying for a mortgage, be open, honest and completely upfront with the lender about any potential changes coming up.
If the change in circumstances happens after you complete, and you genuinely weren’t aware that it could be on the cards, it’s no issue. Just carry on making the mortgage payments.
If you struggle, perhaps because your income level drops considerably, talk to the lender. Don’t just ignore them. They don’t go away, so there’s no use putting your head in the sand.
Can I port my mortgage if I need to move to a different property as an NHS worker?
Yes, absolutely, as long as the lender is happy with the property that you’re looking to port the mortgage across to, plus your income and expenditure position.
People sometimes misunderstand porting and think they can automatically swap the mortgage onto the next property. It’s not an automatic given right, but porting can be a ‘get out of jail free’ card.
For example, if you’re looking to move two years into a five-year deal, and you would have to repay that mortgage with lots of penalties – that’s really where portability comes in.
Are there any additional fees or charges associated with the mortgage as someone who works for the NHS?
No – there are no additional charges or costs for an NHS employee. Quite the reverse, actually. Occasionally, lenders make specific products available for key workers and those in the medical sector generally.
What if I have bad credit? Can I still get a mortgage as someone who works for the NHS?
It really does depend on how bad the credit is. There are lenders that are okay with a whole range of different circumstances. That can range from somebody who has a £10 default on a mobile phone contract they weren’t aware of, up to people with debt management plans.
There’s a home for most mortgages these days, but as the situation worsens, the price increases. That’s simply because lenders charge according to their perceived risk. That risk is higher for someone who has a number of defaults or poor credit history than for somebody with no adverse credit at all, or somebody with a small one-off phone contract blip.
You can get mortgages, but expect to pay more if you have a poor credit history.
What happens if I’m unable to make my mortgage payments as an NHS worker?
The key thing in this situation is to talk to the lender. Don’t stick your head in the sand and hope that things will improve or the lender will go away. They won’t.
Explain your circumstances to the lender and they will do what they can to try and help you.
Can I get a Buy to Let mortgage as an NHS worker?
Yes, these are again readily available for NHS workers. With Buy to Let mortgages, the amount you can borrow is predominantly driven by how much the property is worth and what rental income it generates.
Lenders generally want applicants to have minimum earnings outside of the rental income for the property, although that’s not always the case. But as an NHS worker, that doesn’t inhibit the availability of Buy to Let finance.
How do I apply for a mortgage as an NHS worker? How can a mortgage broker help?
Obviously I would say talk to Davison Deem. Probably 80% of our clients are in the medical sector.
A broker worth their salt will know which lenders will lend you enough, which one of those will then offer the right rates and terms. We will know which lenders take all those variable payments into account, and which will take the biggest proportions of them.
A broker will hopefully research the whole of the mortgage market, or a large panel of lenders, for you to see what the right rates and terms are for you.
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
MOST BUY TO LET MORTGAGES ARE NOT REGULATED BY THE FINANCIAL CONDUCT AUTHORITY.
