Mortgages for NHS Staff
Securing a mortgage can come as a challenge for anyone, especially for first-time buyers. Regardless of your circumstances, knowing the options that are available to you is a vital step in feeling confident and secure in your financial decisions.
For the 1.5 million people employed by the NHS, from doctors to nurses to dentists, this process could look slightly different. Many NHS staff members may not be aware of what their mortgage options are, what sort of discounts they can receive and what support there is available.
We have helped countless clients make the right decision regarding their mortgage solutions, including mortgages for NHS staff. Our extensive experience will ensure that as a member of the NHS, securing a mortgage is as stress-free as possible.
What is an NHS Mortgage Scheme?
Unfortunately, the NHS Key Worker Mortgage Scheme, or in other words, a specific, tailor-made NHS mortgage, no longer exists. While this scheme was available in the past, these days a standalone ‘NHS mortgage’ is not a service that is available or offered to NHS staff.
However, lenders who specialise in providing mortgage services for NHS staff members may provide tailor made mortgage discounts for doctors, nurses, or any other eligible member of the NHS.
Who is Eligible for an NHS Mortgage Discount?
The first step to securing an NHS mortgage discount is to ensure that you meet the eligibility criteria.
In order to apply or qualify for an NHS mortgage discount or scheme, you must be employed on a permanent basis as a clinical staff member. In addition, your employment must be with any of the following NHS trust organisations:
- NHS GP Surgeries
- NHS Direct
- Dental practices with NHS status
- NHS Ambulance Trust
- Mental Healthcare and Social Care Trusts
- NHS Primary Care and other Care Trusts
- The National Blood Transfusion Service
- The Health Protection Agency
While these conditions mostly apply to UK residents, for NHS staff that are Foregin Nationals and in the UK on any kind of work visa, we may be able to offer help in securing a mortgage. In order to be eligible, you will need to be in the UK for at least 6 months, as well as pass our credit check.
Are There Any Restrictions or Limitations on an NHS Staff Mortgage?
Unfortunately, not all NHS employees will be eligible for certain key worker discounts. This means that positions in sectors such as administration, cleaning, housekeeping and other non clinical sectors are not usually eligible or covered by NHS mortgage discounts.
This includes medical staff such as doctors or dentists, who are also not considered eligible. Currently, mortgages for doctors are not usually considered a part of the NHS staff mortgage discount schemes, though exceptions are possible.
How Much Can NHS staff Borrow for an NHS Mortgage?
The process for applying for a mortgage as a member of the NHS is the same as applying for any other mortgage. You will need to prove that you are capable of committing to monthly payments, which will be examined based on your monthly outgoings, your age and your salary. NHS staff will be accessed by their pay band.
This will determine how much you are entitled to borrow, the length of your mortgage, as well as the interest rate.
What NHS Staff Mortgage Discounts Are Available?
While there is no such scheme as a dedicated NHS mortgage, certain providers offer specific incentives on their mortgages. These may not be specifically reserved for NHS staff, but can be beneficial to both current and retired NHS workers. We are able to advise on tailor made mortgage solutions, including specific types of NHS mortgage discounts.
There are also several other affordable housing schemes for NHS workers to access.
Help to Buy
Probably one of the best known mortgage schemes in the country, Help to Buy is targeted at first time buyers and aiding them in getting onto the property ladder. However, certain restrictions will apply:
- You cannot already be a homeowner, though in some circumstances, this restriction may vary.
- You may only purchase a new-build home with a value of up to £250k (£450k in Greater London).
The benefits of a Help to Buy mortgage include:
- A 5% deposit.
- A 20% government equity loan (40% in Greater London). This brings your total deposit to 25%
- An interest-free loan for the first five years.
- A loan is only required for 75% of the property value.
Similarly to Help to Buy, Shared Ownership allows you to purchase a property that would otherwise be outside of your budget. While this scheme only provides you with full ownership of between 25% and 75% of the entire property, there are several benefits to this scheme, including:
- Shared Ownership mortgages require a lower deposit due to the lower value of the ownership share.
- Shared Ownership allows you the flexibility to purchase the remaining share of your property later down the line, should you be in a position to do so.
However, it is important to keep in mind that you will be responsible for paying rent on the percentage of the property that you do not own.
Right to Buy
Rent to Buy is a scheme for those seeking extra time to save for the cost of buying a house by renting, whilst still being able to live in the property they wish to purchase. Unlike Shared Ownership or Help to Buy, Right to Buy does not offer you any ownership of the property at first, however, this may be a viable option for some people. For example:
- Local authorities will set an agreed sale price for the chosen property, and this will not increase under the Right to Buy scheme, no matter how the market changes.
- The cost of rent under Right to Buy is also reduced to allow for saving.
While this scheme is only offered to successful applicants, it could be an opportunity for NHS staff to have a guaranteed chance at a mortgage, whilst still being given the time to save for their deposit.
G Force Mortgages Ltd are authorised and regulated by the Financial Conduct Authority and are Independent Mortgage Specialists. We have the ability to search the whole UK market, including deals that you will not find on the high-street.
Our expertise allows us to find the best mortgage discounts for NHS staff that may not be common knowledge. Let us help you find an NHS staff mortgage that meets your needs.