Can Paramedics and Doctors Get a Better Mortgage?

It is no secret that working within the healthcare industry has its own unique challenges, from staff and patient care to long and late hours. But how does this translate when looking into getting a mortgage?

At the basic level, working as a paramedic, doctor, or healthcare professional is typically seen by many mortgage lenders as a massive boon – demonstrating a stable career with future promotional prospects and longevity with a consistent income. However, with the addition of extra shifts, locum work, and potentially multiple PAYE payslips and invoices it can be difficult for lenders to accurately assess against their eligibility criteria.

In this short guide, we will explore everything you need to know about mortgages for doctors and paramedics with wider insights into mortgages for the healthcare industry – including available options, borrowing limits, and potential benefits.

Do NHS Paramedics Get Discounts on Mortgages?

It is important to note at this juncture that there is no official NHS mortgage discount scheme, however, paramedics and NHS workers alike who are working within the NHS can absolutely still benefit from exclusive advantages and mortgage deals offered by specialist lenders. A key advantage to working within the NHS is that many mortgage lenders recognize the financial stability of NHS employment and can provide lower interest rates, more flexible criteria, and potentially enhanced borrowing limits because of it.

Here at Boon Brokers, we always recommend working alongside a trusted broker or NHS mortgage advisor when navigating the world of mortgages, as they will have access to knowledge and potentially exclusive deals that will be tailored to healthcare professionals. Let’s dive into exactly what mortgages are available for paramedics and doctors, and exactly what offers might help you find the perfect mortgage opportunity for your circumstances.

What Types of Mortgages Can Paramedics and Doctors Get?

When looking into exactly what types of mortgages are available to paramedics and doctors alike, it’s first important to understand that there is no ‘Paramedic mortgage’ or ‘Doctor mortgage’ as such. Equally, there is no longer a specific NHS mortgage scheme designed for all NHS staff.

Instead, the mortgages that are available will typically come down to the typical factors – income, deposit amount, credit rating, and age – with specialist lenders catering specifically to the needs of NHS workers mortgage requirements, allowing for increased flexibility in regards to criteria.

The good news is that with the nature of healthcare work providing a good stable income with opportunities for increased hours, lenders will generally view healthcare professionals as low to medium risk applicants with a strong likelihood of repaying the loan. As such, specialist mortgage lenders can often look favourably upon NHS workers, potentially offering enhanced deals from leniency with underwriting to enhance income multiples. This means that, whereas traditionally mortgage lenders would consider a 4 times – 4.5 times your annual salary, specialist lenders may offer NHS workers an increase to 5 – 5.5 times.

In addition to these specialist lender opportunities, there are also a multitude of mortgage types and schemes that lend themselves to both paramedics and doctors – creating that close association with the colloquial phrase ‘a doctors mortgage’ or ‘NHS mortgage’. These can help whether you’re an established professional within the healthcare industry or starting your journey as a junior doctor or newly qualified paramedic. Let’s take a look at some of the options available that have replaced the key worker scheme:

Can I Get the Key Worker Scheme?

In the last couple of years, you may have heard about the government Key Worker scheme. Unfortunately, as of March 2024 this scheme no longer exists. However, as aforementioned, there are alternative solutions that are still available to help medical professionals in purchasing a home.

The First Homes Scheme

One of the most popular schemes is the First Homes Scheme. This government-backed scheme was developed to help first-time buyers get on the property ladder with a 30% – 50% discount of the property’s market value. The First Home scheme is a nationwide scheme and has a unique criteria; to be eligible for this scheme, the property being purchased must be a new build or purchased from someone who previously used this scheme themselves.

With a wide-selection of specialist lenders, mortgage schemes, and varying criteria for each, it is always best to check with your broker about any ongoing and available schemes when looking into available mortgages for medical doctors. Read our latest article – What is the First Home Scheme? – to learn about all the ins and outs of this government scheme.

Shared Ownership

Another option that is available to those who are looking to start their journey on the financial property ladder but who don’t necessarily have the funds for full ownership is to buy a property with the Shared Ownership scheme.

The Shared Ownership scheme allows first-time buyers or those without a property to buy a percentage of a property (typically between 25% and 75%) and pay rent on the remaining share.

Over time, you have the option to gradually increase your share in the property as your financial situation improves – this is known within the industry as staircasing. This option removes the ‘all your eggs in one basket’, and delivers an opportunity to get on the property ladder while providing the flexibility to increase your ownership as and when you can afford it.

This scheme may fit your circumstances perfectly and could offer a particular benefit for any NHS worker who may be navigating irregular shift patterns and varying incomes, as it greatly reduces the amount of an initial deposit.

Hero Mortgages

The Hero Mortgage initiative is a fantastic service offered by Kensington Mortgages, and is a mortgage that is only available for key workers, including:

• NHS Clinicians
• Paramedics
• Nurses
• Teachers and Lecturers
• Members of the armed forces (Army, RAF, and Navy
• Firefighters
• Police

As the title suggests, this mortgage was created to help and aid the unsung heroes of society, and can help healthcare professionals access specialist lenders that understand the full picture of their professional lives. This understanding enables paramedics and doctors to benefit from mortgage deals that are better aligned with their unique income patterns, including income from shift work or additional responsibilities.

How Much Can a Paramedic Borrow?

When asking the question “How much can I expect to borrow as a paramedic?”, the amount will largely depend on what we call ‘the usual suspects’. This includes taking into consideration income vs outgoings, the initial deposit amount, and credit rating, as well as any additional criteria certain lenders may have.

Typically, most lenders will offer borrowing limits of around 4 to 4.5 times an applicant’s annual salary, with some specialist lenders increasing this to 5 to 5.5 times depending on your specific financial standing. With this in mind, we always recommend using our free mortgage calculator to give you an idea of exactly what you can come to expect. To help provide an overview, here are some borrowing examples based on typical paramedic salaries:

• A paramedic earning £35,000 per year may be eligible to borrow between £140,000 and £157,500.
• A senior paramedic earning £43,000 annually could secure a mortgage ranging from £172,000 to £193,500.
• If overtime and shift allowances increase earnings to £45,000, some lenders may offer borrowing amounts up to £202,500.

It goes without saying that borrowing potential will be affected by outstanding debts, monthly expenses, and credit score. A strong credit history can often improve mortgage eligibility and may also result in more favorable interest rates.

In addition, the length of current employment gives lenders an insight into the stability of your profession. And so, for long serving paramedics and NHS workers, lenders may also enhance their borrowing ratios. Ensuring that all of these factors align to your benefit will help you receive the best mortgage deal available.

How Much Can a Doctor Borrow?

While following the general rule of mortgage eligibility through income vs outgoings, deposit amount, and credit rating, working out exactly how much a doctor can borrow can actually depend on a multitude of factors. Simply put, when it comes to mortgages for doctors it really depends on what stage you are in your doctoring career and the amount of variable factors associated with your financial standing.

Covered in our in-depth guide to What Can Affect a Doctor’s Mortgage Application, the most common problem that Doctors may face is that it is hard to provide evidence of income to lenders. Outside of specialist lenders, mortgage lenders will always want to see a clear income path that will allow consistent repayments. Because doctors can often have a combination of PAYE payslips and invoices to calculate, it sometimes be difficult for a lender to accurately assess the exact income a doctor makes.

That being said, more often than not doctors will be able to access larger mortgage loans due to their strong earning potential and job stability. As before, most lenders will offer borrowing limits of around four to five times the applicant’s annual salary with specialist lenders potentially offering higher ratios for doctors with higher incomes or specialised careers.

Depending on the stage of your career, here are some borrowing examples based on typical doctors salaries:

• A junior doctor earning £32,000 may be eligible to borrow between £128,000 and £160,000.
• A general practitioner (GP) earning £65,000 annually could secure a mortgage ranging from £260,000 to £325,000.
• A consultant or specialist doctor earning £100,000 annually might be able to borrow between £400,000 and £500,000, depending on the lender’s criteria.

It goes without saying that borrowing potential will be affected by outstanding debts, monthly expenses, and credit score. A strong credit history can often improve mortgage eligibility and may also result in more favourable interest rates.

Additionally, some lenders will account for increased earnings through overtime, locum work, and bonuses. However, the crucial element that will always directly affect the borrowing amount will come down to how the lenders view your financial stability. As such, ensuring that you have a strong credit rating, fewer debts, and increased income will optimise your chances at securing the best mortgage for doctors with better interest rates.

How Boon Brokers Can Help You

Here at Boon Brokers, we’re a trusted online mortgage advisor that specialise in working with a range of lenders that offer competitive mortgage products for paramedics and doctors. Whether you are a newly qualified paramedic looking to get on the property ladder or an experienced doctor searching for an investment property, we specialise in mortgages for medical doctors and are here to help.

As a fee-free mortgage broker with specialist NHS mortgage advisors, we can advise on a wide range of lenders of whom we have built special relationships with over the years. Navigate the difficulties of mortgages for doctors and paramedics with ease – Contact Boon Brokers Today – for the mortgage that is tailored to your exact needs.