At Fiducia Group, we specialise in arranging mortgages for NHS staff.
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Speak to us today about how we might be able to help.
Are there specific mortgages tailored to the NHS?
Not anymore, really. There were a few years ago, where lenders might have made some exceptions for ‘blue light workers’ but now there aren’t specific mortgages. You might find discounts on fees, but even that’s not very common now.
With all the different types of employment structures in the UK it’s hard for lenders to be specific – that’s a change that we’ve seen since the Pandemic.
Is it easier to get a mortgage if you work for the NHS?
Lenders have strict criteria which seem to change every week. They are always moving the goalposts. Generally I wouldn’t want anyone to try and apply for a mortgage themselves without paying close attention to the specific criteria.
Lenders treat everyone the same – they look at three months’ payslips and six months’ bank statements whoever you are. They’ve got to do their due diligence now more than ever. So it
It’s not easier for anyone to get a mortgage these days – if anything it’s a bit harder.
How do I know if I qualify for an NHS mortgage?
This is where we can come in to help. NHS workers are treated pretty much the same as anyone else, but what you as an individual wouldn’t know is the criteria for all the different lenders.
For example, how long do you have to be in your current job, or how many pay slips you have to provide. There isn’t anything specific for NHS workers anymore. A mortgage advisor will look at you and your situation and how that meets the lender’s criteria.
Can I get a mortgage for five times my salary?
This is an interesting one and it depends on your salary. Sometimes the lenders will allow you to borrow more if you have a higher income. Others take a more neutral view on it and assume that a higher income just means higher expenditure. Many lenders use affordability calculators – looking at your day-to-day expenses and not just your salary and loans.
We often find that the lenders all give a different amount when it comes to a maximum lend – so that’s where you really need a broker. Your own bank might say you can borrow £100,000, but you might be able to borrow £125,000 elsewhere because all of the calculations are different – and ever changing.
The way banks stress test has recently changed – if you did an affordability online with your bank last week, this week it’s likely to be different. Your advisor will know if there are any changes.
How much can I borrow and what deposit do I need?
Lots of lenders are now allowing 5% deposits, so that’s the minimum you need. That being said, a few lenders out there still offer a form of guarantor mortgages. If you have just started working and not saved up a deposit, a family member could put a holding deposit in with that lender to act as a guarantor.
If you’ve got a generous family member that can help out with a gifted deposit that’s fantastic, but with this type of mortgage your family member would get that money back. There’s lots of different options – don’t just assume that you have to have a deposit.
Do NHS staff have any restrictions or limitations when it comes to getting a mortgage?
With NHS workers I often see them working full time – doing 38 or 48 hours a week, but often it’s split across two contracts, so they give me two sets of payslips. Often lenders will accept the first income from the first contract but only use 50% of the second one.
This is where the NHS is a bit different – lenders will often take both contracts as full income from both roles. So that’s a big advantage – NHS staff don’t need to worry about having two jobs, as long as you’re not working extreme hours. If you’re doing 60 hours a week plus overtime, lenders might be more cautious.
With the NHS there could also be a lot of overtime night shift payments. Bank work is often something I see on pay slips too. That could all be used as long as we can see consistency. Ideally it’s backed up with a P60 to show that you’ve not just started doing extra hours for an income boost ahead of your mortgage application.
There’s lots of ways that we can use income, and working for the NHS is more of a help rather than a restriction.
Do NHS workers get better mortgage rates?
Some lenders used to offer better rates but this is very rare now. We might see a lender offering a discount on fees, or mortgage tailored to professional job roles such as surgeons or doctors.
On the face of it it might seem that doctors get better rates, but as a broker, when we compare all the deals we’ve got access to, we often find that the cheapest fit isn’t one specifically designed for NHS workers or professionals.
Lenders often think that a surgeon can afford to pay an extra £1,000 in a fee. A professional mortgage looks good in terms of the label, but in terms of the deal it might not be as good.
If you think you’ve got a good deal, speak to a broker to compare it against all of the others in the marketplace.
What schemes or help are available to NHS workers?
Sadly, there’s very little at the moment for NHS workers specifically. Lenders have taken a blanket approach to all industries. I’d hope that there would be a return to it now that the market is a bit calmer now and back to normal. But there’s nothing to suggest anything’s coming back soon.
You do however have full access of course to the Help to Buy schemes on new builds and we can explain to you how these work.
Do you have any further advice for NHS workers?
A common thing that I find with NHS workers is that they have quite regular pay reviews, or they’ll go up in banding which means an increase in salary. What can be difficult is to evidence that. Your line manager might say you’re due to go up a banding but getting a letter from the right department to confirm that can take quite a long time.
These can be huge departments and they’re very busy – writing that letter is never a priority. But if you’re applying for a mortgage based on the higher banding pay, do try and get some evidence before you apply because it can take time.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE