“We tailor our advice to you and manage everything with the lender from that initial application all the way through to your mortgage offer. Then we work with your solicitors right through to completion.”
Mike Haupt – Mortgage Adviser
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Mike Haupt talks us through the mortgage process for NHS employees.
What is an NHS mortgage and how does it work?
Although there is huge respect and admiration for NHS staff members, there is no longer a specific NHS mortgage. Historically, there might well have been dedicated mortgages, but not any more.
As a member of the NHS you might qualify for a professional mortgage. Are you a doctor or nurse that would qualify for a professional mortgage scheme? Could that offer you a better deal, or actually is your best bet to apply for a standard mortgage product?
The main challenges with NHS mortgages are very much around income. An NHS payslip is never straightforward. There are lots of facets to an NHS worker’s pay – basic pay, enhancements, shift allowances and overtime.
That can potentially confuse some lenders, who shy away from them. Through lots of experience I’ve had with NHS mortgages I have a good understanding of the income and how to find the most appropriate mortgage for you.
What’s the mortgage application process for an NHS worker?
There is no real difference between a standard application for somebody employed in a company and an NHS member staff applying for a mortgage.
The key bit is understanding that person’s income – with basic pay, overtime, weekend enhancements, Bank Holiday enhancements, stepping up allowances and all the other bits and pieces.
It’s really important that you are talking to somebody who understands your income structure and the best lenders to go to. Certain lenders take into consideration all of your income, not just part of it, to increase your borrowing and allow you to go and buy the house that you potentially want – or remortgage, as the case might be.
What documentation do I need to provide for a mortgage as an NHS worker?
It’s payslips, fundamentally, plus bank statements. With any NHS staff member the first thing I’ll always ask for is a copy of your last three months’ payslips. Then I can understand your basic pay and the overall income that we can use to support your mortgage application.
We get the payslips in, make sure they correspond to the bank statements and get a really good understanding of your income from there.
How can I find a lender that offers a mortgage as someone who works for the NHS?
This is where a mortgage broker can make a massive difference. I currently work with 95 different lenders and each one has a slightly different set of criteria around how they treat income.
Some lenders will accept all income, including overtime, weekend enhancements etc., while other lenders only use 60% or 50% of those extras. So it’s really important to work with a mortgage broker who really understands which lenders will offer you the maximum borrowing for your circumstances.
What are the typical interest rates and loan terms for a mortgage as someone who works for the NHS?
Interest rates are changing all the time. As an NHS worker you would potentially be on a professional mortgage or a standard mortgage.
One thing I can say is that you won’t be disadvantaged as an NHS worker. The standard lender criteria will apply for up to a maximum 40 year term, depending on your age. You’ll be able to apply for any mortgage rate and term. There’ll be no difference for NHS workers and non-NHS workers.
Can I use a mortgage to buy a property jointly with someone else as an NHS worker?
Yes, absolutely. It would be the same as any joint application mortgage. We would establish your income as an NHS worker and then do the same for the other applicant. There is no disadvantage or advantage for buying with an NHS worker.
What happens if I am no longer employed by the NHS after obtaining a mortgage?
Once you’ve got that mortgage, the lender can’t take it away. You might take out a five year fixed mortgage and leave the NHS after three years. Because we’ve based it upon your affordability and income at the point of application, nothing would happen to that mortgage until we got to the end of the fixed rate term.
We would reassess the situation then, understand where you are and what your income looks like at that point, and give advice and recommendations then.
But if you leave the NHS no-one’s going to come along and ask for your mortgage to be paid back – that won’t happen.
Does It Cost For An Initial Chat?
Please don’t be afraid to pick up the telephone. Contact us with any questions or any conversations you want to have. There’s no commitment, there’s no silly questions. I’m here to try and help put your mind at ease, so let’s have a conversation and answer your questions.
Can I port my mortgage if I need to move to a different property as an NHS worker?
Yes. Mortgage porting is built into 95% of mortgage offers these days. You absolutely have the ability to port your mortgage, subject to credit score and affordability checks.
But it would be good to talk through the situation. Is it a temporary move to a different part of the country for a job, or a permanent move? There might be some differences with the advice I provide, depending on your overall circumstances.
Are there any additional fees or charges associated with a mortgage as someone who works for the NHS?
There shouldn’t be. There’s no reason why an NHS worker would pay anything more in fees or charges.
What happens if I’m unable to make my mortgage payments as an NHS worker?
It’s very much the same as for somebody who isn’t part of the NHS. If you were in a situation where you’re having payment difficulties, the first bit of advice is to talk to your mortgage lender and understand what your options are.
Not paying your mortgage is the worst thing to do. You wouldn’t be treated any different as an NHS worker. Just talk to your lender and make a plan around what you can afford to do at that stage.
Can I get a Buy to Let mortgage as an NHS worker?
Yes, absolutely. Perhaps you live in Manchester but you’re working in London and you want to let out your property in Manchester. You might use it occasionally or plan to move back one day. In that case, there might be a few options for you around Buy to Let on a residential mortgage.
Or you might just want to buy a home and let it out. It’s worth talking through those options from the outset to really understand what the best advice for you would be.
What if I have bad credit? Can I still get a mortgage working for the NHS?
Absolutely. It comes back to that variety of lenders I work with. If you have bad credit, depending on what it is – whether it’s just a couple of late payments, a default, CCJs or bankruptcies – a lender out there might be able to help you.
We might not necessarily go to the high street banks. But there may well be a lender that can support your mortgage needs.
How do I apply for a mortgage as an NHS worker? How can a mortgage broker help?
There’s no real difference in the application process if you’re an NHS worker. It’s all about that work upfront – preparation is key.
We need to understand your income from the start and how variable or consistent it is, especially around overtime and your enhancements. Then, we can find the right lender for your circumstances.
Here at Tomorrow mortgages, we can make a real difference because of that lender knowledge. We can identify the best overall deal for your circumstances and maximise your borrowing opportunities. We can really help you out and guide you through the process.
Your home may be repossessed if you do not keep up with your mortgage repayments.
The Financial Conduct Authority does not regulate most Buy to Let Mortgages.