Can You Get a Better Mortgage as an NHS Nurse?

The nursing and midwifery workforce is the backbone of a healthy working society, and so when it comes to securing your mortgage – whether it’s a first-time purchase or a third property development – we have to ask the question: “can nurses get a better mortgage rate?”

Mortgages for NHS clinicians – and specifically nurses – can be both as typical as a normal mortgage application or as complicated as one might fear. From managing fluctuating pay and multiple invoices to navigating the newly qualified status and bad credit, in this short article we will explore everything you need to know about mortgages for nurses.

Do Nurses Qualify for Cheaper Mortgages?

It is first important to note that:

• There is no specific ‘Nurse’s Mortgage’ currently available
• There is no longer an official NHS mortgage scheme discount

With that being said, nurses – just like key workers – can qualify for a variety of better mortgage deals and government schemes thanks to the nature of their essential role, especially if working within the NHS.

Championed as key workers, there are also professional and specialist mortgage products today that are designed to help NHS staff and public sector workers. While not being listed as NHS mortgage schemes per say, these types of mortgage deals can offer increased flexibility, enhanced multipliers on lending, and even better mortgage rates that could lower the cost of affording property.

When looking at the typical mortgage lenders and their criteria, nurses are generally looked upon favourably due to the necessity of their work – unlikely to be out of work – and that future incomes will likely remain stable or increase depending on the professional career path chosen.

However, regardless of profession/occupation, mortgage lenders will always look at the ‘usual suspects’ as a benchmark to evaluate the borrower’s ability to repay the loan. These include:

• Credit history: lenders will favour those without any obvious or potentially major financial issues.
• Evidence of a stable income: lenders will ask for detailed information regarding period of employment and salary (payslips and employment contracts).
• The initial deposit: a lender’s criteria can vary when looking at initial deposit amounts, however, this should usually be at least 5-10% of the property’s overall value.
• Affordability assessment: lenders will review all income and expenses to see if you pass the affordability assessment.
• Proof of identity and address: lender will need evidence of identity, typically through a passport or utility bill.

When it comes to finding the best mortgage options available on the market today, we highly recommend partnering with a trusted whole-of-market broker – like Boon Brokers – or an NHS mortgage advisor. This way, you will be able to see all the options available to your specific circumstance with tailored mortgage opportunities that fit your financial situation.

First Home Scheme

As the name would suggest, the First Home Scheme is a government scheme that is open to all first-time buyers. This includes nurses and NHS clinicians who are looking to get onto the property ladder. At its core, this scheme provides first-time buyers with a 30% – 50% discount of the property’s valuation.

Want to learn more about the First Home scheme? Check out our guide – What is the First Home Scheme? – to discover everything you will need to know about this government scheme.

Shared Ownership

Affordability is the number one issue in today’s housing market, and for many people, getting a mortgage for the full market value is a massive barricade to stepping onto the property ladder and securing that first home. Buying a property with Shared Ownership could be the answer, and it is open to all first-time buyers who typically have an income below a certain threshold.

With a Shared Ownership, you are able to buy a share of a property (typically between 25% and 75%) and then pay rent on the remaining portion. While your financial standing improves with each month or year, there are then options to gradually increase your share of the property.

For newly qualified nurses or first-time buyers who do not have the funds for a full purchase, the government Shared Ownership scheme can help accelerate the buying process and offers a ‘foot in the door’ for those who do not have large amounts to deposit.

Want to learn more about the Shared Ownership scheme? Check out our guide – Buying a Property with Shared Ownership – to find all the information you’ll need.

Hero Mortgages – Kensington

Some specialist lenders – enter Kensington Mortgages – will offer NHS nurses and other key workers the Hero Mortgage product. This program is led specifically by Kensington Mortgages and provides a holistic understanding of the financial impact of working within the NHS. For example, a Hero Mortgage would look at 100% of overtime and second job income, debt management plans would be considered, and could even include accepting joint applications.

Visit the product portfolio of Hero Mortgages to find out more.

How Much Can a Nurse Borrow?

The amount a nurse can borrow depends on a variety of factors, including their income, credit history, and the lender’s criteria. Generally, NHS clinicians and nurses can borrow a higher amount than other first-time buyers due to the stability of their profession.

When calculating how much a nurse can borrow, there are a variety of factors that need to be considered. Firstly, the amount a mortgage lender is likely to lend will still be fundamentally structured around the applicant’s income, credit history, and initial deposit. In addition, you may find that certain lenders require additional information or guarantees before they would approve a mortgage loan.

With that being said, lenders will typically use an income multiple (usually between 4 to 5 times your salary) to determine the amount you would be able to borrow. As such, we can take a general overview of recorded nurse salaries – from band 5 to band 8 – and estimate the potential amount a lender would possibly be looking to loan.

Example Borrowing Amounts by different NHS Band Salaries:

• Band 5 (Newly qualified nurse): A nurse earning £24,000 per year could borrow £96,000 – £120,000.
• Band 6 (Experienced nurse): A nurse earning £30,000 per year could borrow £120,000 – £150,000.
• Band 7 (Senior nurse): A nurse earning £37,000 per year could borrow £148,000 – £185,000.
• Band 8a (Advanced practitioner): A nurse earning £45,000 per year could borrow £180,000 – £225,000.
• Band 8b and above (Leadership roles): A nurse earning £50,000 per year could borrow £200,000 – £250,000.

Please note, the recorded numbers are just estimations. The actual number that you will be able to borrow will depend on the varying factors mentioned before and will include an evaluation of your current overall financial situation.

Can Agency Nurses Get a Mortgage?

The simple answer – Yes. Agency nurses can still get a mortgage and may still benefit from the same government schemes, including the First Home and Shared Ownership schemes. In fact, the only differing factor for agency and private nurses is that they may need to demonstrate/provide evidence of regular income.

Some lenders are more flexible with agency workers and may offer mortgages for key workers under both contract and agency work. The main concern for lenders is provability that the applicant will be able to repay the loan and interest rates regularly. As such, agency nurses can simply increase their chances of approval and favourability by showing a consistent work history and provide proof of earnings, ideally over the past 12 months.

Can Newly Qualified Nurses Get a Mortgage?

Newly qualified nurses can absolutely be eligible for a mortgage loan. However, the challenge for newly qualified nurses may come down to the limited work experience and history alongside a limited salary. Nevertheless, there are plenty of opportunities that newly qualified nurses could still benefit from.

Just like any first-time buyer, both the First Home and Shared Ownership schemes remain open to newly qualified nurses, with some specialist lenders who will look more closely at the forecast of your financial possibility with increased flexibility on income vs outgoing.

If you’re looking into mortgages as a nurse, we would advise using a trusted whole-of-market broker like Boon Brokers to explore all the options that could be available, and match you with the best mortgage deal to suit your financial situations.

Can Nurses with Bad Credit Get a Mortgage?

Just like any other occupation or walk of life – having bad credit can affect whether lenders will approve your application and even affect how high your interest fees will be on a mortgage. In general, bad credit will refer to having a history of high levels of debt, missed payments, CCJs, or even bankruptcy. Fortunately, bad credit does not make it impossible to secure a mortgage, rather, there will be some extra challengers.

Many professional lenders now offer mortgages for NHS clinicians with bad credit,  and while it is of course not ideal, there are still schemes available that will be tailored to your current financial situation.

Want to learn more about securing a mortgage credit? Read our in-depth article – Getting a Mortgage with Bad Credit – to find out how you can improve your mortgage application chances.

How Boon Brokers Can Help Nurses Find the Best Mortgage Deals

Here at Boon Brokers, as a whole-of-market fee-free mortgage broker, we understand that finding the right mortgage can be difficult, especially for nurses and NHS clinicians with unique financial circumstances.

Whether you’re a newly qualified nurse, an established NHS clinician, or someone with a less-than-perfect credit history, we can help you navigate the world of mortgage finance and help you find the perfect mortgage for your financial circumstances.

Speak to one of our expert brokers – Contact Boon Brokers Today – and discover how we can help secure the best mortgage deal for you.