NHS Mortgages for Keyworkers. The UK’s Best Low-Rate Options

Looking for an NHS Mortgage but Don’t Know Where To Start?

If you are employed by the NHS and are looking to buy a property, you may have heard the term ‘NHS mortgage’ and you are now wondering how to go about learning more.

Here at The Mortgage Broker our team is on hand to find the best NHS mortgage deals possible for you. We are highly experienced in all aspects of mortgages including specialised mortgages.

Our aim is to provide the best mortgage service possible for our clients and to be the most respected mortgage broker in the UK. We believe that excellence begins with quality customer service and we are devoted to that goal.

If you need an NHS mortgage advisor, look no further – we are here to help.

Who would qualify for an NHS mortgage?

As noted above, there isn’t an ‘NHS mortgage’ product per se, but some lenders will provide mortgages with special deals for NHS staff.

Any preferential mortgage with discounts or incentives for NHS or key workers will depend on the particular lender and on the worker’s role in the NHS. Normally to qualify you would have to be a full-time employee or have a permanent contract as a member of the clinical staff, for example as a doctor, nurse, therapist, etc. within an NHS component such as:

• NHS Direct
• GP Surgery
• NHS Dental Practice
• National Blood Transfusion Service
• Ambulance Trust
• Primary Care
• Health Protection Agency
• Mental Healthcare
• Social Care
• Another NHS Trust (currently 215+ trusts)

If you do work for the NHS then contacting an expert mortgage advisor would be your best first step. You’ll find that our team at The Mortgage Broker has the experience and expertise to help you find the NHS mortgage deals you are looking for.

Can a locum / self-employed doctor get a mortgage?

A high street lender will typically assess a self-employed worker differently and give priority to employees with a permanent employment contract and a steady income.

If you are a locum doctor you will most likely have irregular working patterns which can make it difficult when applying for an NHS mortgage.

Some lenders will be more amenable and understanding of a locum doctor’s financial situation however and be more willing to work out a mortgage deal for you.

Using a specialist mortgage advisor like The Mortgage Broker will make it easier for you to get the mortgage that you want. We have extensive experience and expertise in securing mortgages for clients with unique and challenging circumstances and we have a wealth of trusted contacts from our years of relationship-building in the industry.

What is the NHS mortgage scheme? Does it still exist?

Doctors, nurses, ambulance drivers and other essential professionals work hard on the frontlines to keep our country going, but often have lower salaries which makes buying a house more challenging.

However some lenders will look favourably on certain occupations and offer better lending terms to help key workers to get on the property ladder.

There used to be a special mortgage scheme for NHS workers and other key workers, but this was discontinued in 2019, the Help to Buy scheme also ended in 2023, however, there are other initiatives available to help you with an NHS discount mortgage.

The Shared Ownership scheme

The Shared Ownership scheme can be very useful to buyers trying to get onto the property ladder. Under this scheme you can buy a share of a house while paying rent for the rest.

With shared ownership, you will usually buy between 25% and 75% of the value of the house and pay rent to a landlord for the remaining percentage.

You will need to supply a deposit (normally 5% and 10% of the share you are buying) and you can have the option of buying a further share in the future (this is known as staircasing) in which case you would pay a smaller rent amount.

 

H2: The Right to Buy scheme

The Right to Buy scheme was introduced in the Housing Act 1980 and remains popular to this day. Under this scheme.a council tenant can buy their home at a substantial discount.

To qualify for Right to Buy:

• The property must be your main home
• The property must be self-contained
• Your home isn’t due to be demolished
• You don’t have any possession orders or any serious debt
• You must have been a council tenant for at least three years

This means that you will have had a public sector landlord, for example a council, NHS trust, armed forces or housing association

The Right to Buy discount

The amount of discount you get will depend on various considerations, such as:

• Whether you are buying a house or a flat
• The value of the property
• How long you’ve been a public sector tenant

For flats, you can get a 50% discount if you have been a public sector tenant for 3 years and this will increase after five years by a further 2% for each year after that (up to a maximum of 70%).

For houses, after three years tenancy you will be eligible for a 35% discount and after five years this will increase by a further 1% for each successive year (up to a maximum of 70%).

The maximum discount is £102,400 (£136,400 in London).

It’s worth noting that these conditions depend on the total amount of time you have been a public sector tenant (not just the amount of time you’ve lived in your home).

It is possible to make a joint application, in which case you would count the amount of time of whoever has been the public sector tenant the longest.

The government calculator will tell you what kind of discount you might be entitled to.

Using the Right to Buy discount as a deposit on a mortgage

A major advantage of the Right to Buy scheme is that lenders will usually allow you to use your discount as a mortgage deposit. You may also need to have your own deposit amount saved as well, depending on the lender. Additionally, mortgage fees will still have to be paid in advance, as well as fees for surveys and conveyancing.

How much can an NHS worker borrow?

When you make an application for any type of NHS mortgage you will be subject to the same risk assessments as any other borrower.

Income, expenditure and financial commitments will be assessed and a credit check will be performed.

The amount an applicant can borrow will be based on the usual considerations of risk to the lender, although special deals can be found for key workers and NHS staff through specialist brokers..

What kinds of mortgages are available to NHS workers?

Although not unique to NHS employees, there are various types of mortgage that can be obtained, such as a first time buyer mortgage, a home mover mortgage or a buy to let mortgage. Here are some mortgages which can be used in conjunction with the above schemes:

What challenges do workers face in getting an NHS mortgage?

There are several potential challenges in securing a mortgage for NHS staff, including:

Affordability

The first challenge facing NHS employees is the income-to-mortgage ratio. It’s no secret that, although NHS staff provide an invaluable service, wages can be low, especially for nurses and other staff on the frontline.

Complex income

There can be a level of financial complexity due to factors such as shift allowances, overtime, consultancy fees, bonuses and more. Some lenders may be put off by not being able to fit you into a neat box to make risk calculations.

NHS pension contributions

Banks will always look at your outgoings as part of their calculations and if you have pension contributions coming out of your salary some lenders may see that as earmarked funds which can’t be used towards mortgage repayments and view this as a negative consideration.

Zero Hours contracts

With a zero hours contract employers don’t need to provide regular hours to staff. Mortgage lenders don’t typically view zero hours contracts favourably as it means that your income can be inconsistent and not guaranteed.

How can you overcome these challenges?

The main, overriding issue is that typically high street lenders will want to follow a structured process of completing check boxes to assess any mortgage applicant. As noted above, if you are an NHS employee your income may be more complicated, so any lender would need to take a more individualised approach.

The good news is that some lenders are willing to tailor their risk assessment approach and take into consideration your unique financial situation. For example, some banks will be able to offer a zero hours contract mortgage. You may need to provide a larger deposit, but not necessarily.

With lower salaries and more complex or inconsistent income streams, such as shift allowances, income from consultancy, staff bonuses, or self-employment / locum income; a lender will need to carefully bespoke any mortgage offer. Many specialist lenders are quite understanding of the unique needs of NHS workers and would be willing to provide you with a mortgage despite any challenging financial complexity.

What are the next steps in getting an NHS mortgage?

Finding the right lender is the most important first step and the best way to do that is by using an expert NHS mortgage advisor, such as The Mortgage Broker.

Our friendly and expert team is highly experienced in finding specialised mortgage deals and we have access to more than 90 mortgage lenders and over 18,000 mortgage products. The more information you have, the better your chances of securing a mortgage. Let us do the hard work of locating the lender most suited to your needs.

Contact us today and we will take it from there and help find the perfect NHS mortgage for you.

0800 0320 316