NHS Mortgages: A Guide to Financing Your Home

Can I get a discount on NHS Mortgages?

Yes, but it depends on your lender and mortgage terms. In the UK, many lenders specialise in mortgages for the NHS.

They’re more likely to understand your income and be supportive of your circumstances. They offer more flexible criteria, lower rates, and discounts on fees.

The only catch is that these lenders aren’t always easy to find. That’s because ‘NHS mortgages’ are not widely advertised as standalone products. 

In fact, there are no mortgages specifically aimed for NHS staff and you qualify for the same mortgages just like everyone else. But the best deals and discounts are often found through specialist lenders.

Later on, we’ll discuss how you can easily find one that suits your needs.

Am I Eligible for the Discount?

While clinical staff in roles like doctors and nurses are generally eligible, certain positions such as housekeeping and administration may not qualify for the discount. 

Here are some examples of NHS clinical staff roles that are eligible:

• Doctors (General Practitioners, Consultants, Junior Doctors, etc.)
• Nurses (Registered Nurses, Nurse Practitioners, Midwives, etc.)
• Allied Health Professionals (Physiotherapists, Occupational Therapists, Speech and Language Therapists, Radiographers, etc.)
• Dental practices
• NHS Direct
• Ambulance Trust
• Primary Care Trusts
• Health Protection Agency
• Mental Healthcare and Social Care trusts
• National Blood Transfusion Service
• Other trusts with NHS status

How do I qualify for an NHS mortgage?

NHS staff members can qualify for mortgages just like anyone else. If you’re on a permanent contract and a clinical worker, it’ll probably be easier. 

Many lenders will see you as a low-risk borrower, so you’re less likely to default on your loan. But ultimately, it all depends on whether you meet their criteria.

The eligibility criteria for NHS mortgages vary from lender to lender, but generally speaking, you will need to meet the following criteria:

• Be employed by the NHS on a permanent contract.
• Have a good credit score.
• Have a stable income.
• Be able to afford the monthly repayments.
• Have a deposit of at least 5% of the property value.

Your employment type, credit history, income and expenses, and deposit size will matter upon your mortgage application. You’ll also need to provide proof, especially when it comes to your income.

How much can I borrow as an NHS Staff?

When determining how much you can borrow, most lenders consider your income as a factor. They typically multiply your income by 4 or 5 times, taking into account your job role and other relevant factors we mentioned earlier.

Additionally, lenders will assess your expenses, debts, and any history of bad credit. Some lenders may consider bonuses and overtime as part of your income, while others may not. It’s important to note that the lender you choose will also influence the amount you can borrow.

Let’s say you have an annual basic salary of £35,908. Your lender will multiply this amount by either 4 or 5.

• With an income multiple of 4, you could potentially secure a mortgage of £143,632.
• If the income multiple is 5, you might be eligible for a mortgage of £179,540.

Documents You Need to Prepare

Once you apply for a mortgage, you’ll need to gather some documents. These will help the lender assess your financial situation and determine whether you’re eligible.

The specific documents you need vary depending on the lender, but they’ll typically include:

• Proof of income:
  • 12 months of payslips even in a locum position to show consistent income.
  • Contracts of employment;
  • P60 to show any bonuses or overtime pay, and your annual income.
• Proof of identification
  • Passport, driver’s licence or other government-issued ID
  • Your NHS ID and employee number to verify your NHS employment.
• Proof of current address: Utility bills or bank statements
• Proof of your savings and deposit.
• Details of any outstanding debts: This could be your credit card statements or loan agreements

Having these documents in order can help streamline your mortgage application process and increase your chances of securing a suitable NHS mortgage.

Various Schemes to Help NHS Key Workers

As the Key Worker Programme for NHS ended in 2019, you might be wondering what alternative schemes are available to you. 

While the schemes we’ve outlined here are not exclusive to NHS staff and key workers, they are most likely to be helpful in your homeownership.

Most of these have lower deposit requirements and discounts on the purchase price which makes buying a home more affordable. These include:

Mortgage Guarantee Scheme

The UK government introduced the Mortgage Guarantee scheme in April 2021 to help people buy a home with a low deposit.

The scheme works similarly to a 95% mortgage, the only difference is the government guarantees 15% of your mortgage loan.

With a 5% to 9% deposit, you can get a mortgage on a property worth up to £600,000. Then, a participating lender will lend you a 95% mortgage. 

Once you default on your repayments, the government will reimburse your lender for 15% of the mortgage amount. This reduces the risk to lenders and opens a way for you to get on the property ladder with a low deposit.

The scheme is available to both first-time buyers and existing homeowners. Please note though that this scheme is only available until the end of June 2025.

First Homes Scheme

As a replacement for the old Key Worker Programme, the government launched in April 2021 the First Homes Scheme.

This scheme allows first-time buyers and key workers to get a discount of 30% to 50% on new-build homes in England.

The discount applies to the property for a lifetime. Once you sell it to another eligible buyer, they’ll also get the same discount.

To be eligible, you’ll need to be a first-time buyer and have a household income of below £80,000 in England (£90,000 in London). You’ll also need to get a mortgage for at least 50% of the property’s price.

Under the scheme, local councils in England can have their specific requirement including prioritising essential workers like you (NHS staff), residents in the area, or people with low income.

Shared Ownership

This scheme lets you partly buy and partly rent a property. Then, gradually increase your share on the property later on if your landlord allows you to ‘staircase’.

Here’s how it works: You buy a share of a property, typically between 25% and 75%. You then pay rent and service charges on the remaining share to your landlord. You should also take out a mortgage loan and pay a 5% or 10% deposit to finance your share.

To qualify, you need to have a household income below £80,000 a year or less (£90,000 in London) and you cannot get a full mortgage for a home that meets your needs.

Right to Buy

Under the Right to Buy scheme, if you’re a council tenant for at least 3 years, you can get a discount on the property’s market value when you buy it.

The maximum discount you can get on a property in England is £96,000, and £127,900 in London. The discount amount varies depending on location, length of tenancy, property type, and home value. It also increases annually with the consumer price index (CPI.)

Read more about Right to Buy scheme.

The Bottom Line

As an NHS staff member, you face unique challenges when it comes to financing your home. By understanding the different options available to you, you can increase your chances of success. 

Here are some key takeaways from this guide:

• Many specialist lenders offer mortgages for NHS staff.

• You may be eligible for discounts and schemes that can help you save money on your mortgage.

• The amount you borrow will depend on your lender’s terms and assessment. This means factors like your income, expenses, credit history and deposit size will play a role in your application.

• It’s important to have all of your documents in order before you apply for a mortgage.

But here’s another way to NHS mortgage success: a good mortgage broker! They’ll use their expertise to navigate the complex landscape on your behalf, find you the best deals, guide you through the process, and ensure you get the keys to your dream home.

If you want to start your homeownership journey, simply fill out this quick form and let us connect you with a highly skilled NHS mortgage advisor.