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How would my income be assessed as a postal worker?
If you’re looking for a mortgage for Postal workers and you are working as a postal worker there’s a good chance that on top of your basic pay you also receive overtime for the hours that you do. Lenders will view this overtime differently from one another however they will take the overtime into account when looking at your mortgage capacity.
How much they use of this overtime will depend upon the lender, but some lenders will use up to 100% off the overtime averaged over a certain period such as three to six months.
Depending on what your total income is a lender may be able to use up to five times this income when calculating your mortgage capacity.
This will depend on other factors such as the property value, your deposit, your credit score and the amount of income you receive.
If you receive any other income on top of this such as bonuses or allowances the lender can look to include this income too.
Your mortgage adviser will be able to work this out for you. Only use a mortgage adviser that is regulated by the Financial Conduct Authority.
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What age could a lender lend until for a postal worker?
Lenders have different criteria when it comes to their maximum age. A common age for a lender to lend up until is 70 however there are lenders that can go as far as 75 or even 80. When a lender lends until 80, they need to be confident that you can continue working until that age.
For a role such as a postal worker they may not be comfortable that you would still be able to do the job at 80 years old due to the amount of walking required. In this scenario they may however still lend until age 80 if there was an option to move into an admin-based role within the Royal Mail and the underwriter was comfortable with the overall scenario.
Are there any special schemes for postal workers when taking a mortgage?
Some professions can benefit from certain schemes when it comes to taking a mortgage. For example, there have been schemes for teachers, armed forces workers, police and even some professional jobs such as doctors and accountants getting favourable terms with a few lenders.
At the time of writing this, there are no schemes available to postal workers to get advantageous terms.
Would I get a buy to let mortgage working as a postal worker?
There is no reason why a postal worker would not get a buy to let mortgage. Some buy to let mortgage lenders have a minimum income criteria of £25,000 before they will consider you for a buy to let mortgage. This can usually be made up by basic pay along with allowances, overtime and any bonuses that may be received.
Even without an income of this amount, there are still lenders that can consider applicants for a buy to let mortgage.
Other factors will be assessed such as residency (do you already own your home?), your credit file (is it clean?), the rental income that the property will generate, your deposit and the type of property itself.
If all is well, there is no reason that you would not get a buy to let mortgage.
Here is more information on buy to let mortgages.
Bear in mind that if you plan to buy an investment property, you will have to declare the rental income. More information from HMRC can be found here.
I am working as a postal worker and have some bad credit; would I still get a mortgage?
Potentially, yes, you could still get a mortgage with bad credit. Your occupation will be largely irrelevant apart from maybe how your income is made up and whether this would satisfy the income requirement to get the mortgage.
When it comes to the bad credit in particular, it will depend on what it was and the level of it. For example, a lender (and your mortgage adviser) will need to work out whether the adverse credit related to bankruptcies, IVA’s, CCJ’s, defaults, missed payments or debt management plans.
If any of the above, your adviser would need to understand what amount the bad credit was for, who was it to, when did it occur and is it now settled?
Bad credit is a complex area so it’s always best to get advice from a professional adviser.
Alternatively, Check My File will show you data from all three of those mentioned.
If you would like I NEED ADVICE to arrange a free consultation with a qualified mortgage professional, please complete the contact form.
What kind of challenges may I face trying to get a mortgage as a postal worker?
The main challenge that may occur could be the way your income is made up if you’re a postal worker. If a large portion of your annual income is generated by a fluctuating payment such as overtime, some lenders will not lend as much to you compared to what they may have if all was under your basic income.
There are still lenders that are better with this type of income than others so speak with a mortgage adviser.
Another challenge may be taking the mortgage up until a later age. For example, if you are 55 wanting a 20-year mortgage term going to age 75, there will be some lenders that could have considered this for someone that has a desk-based job but may not be so comfortable offering this to a postal worker if it’s clear that they will be relying on their fitness to continue doing the job each day.
Usually there is a lender that will be happy with the scenario so again, taking advice from a mortgage adviser is wise.
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I’ve only just started working as a postal worker, when may I get a mortgage?
You can still apply for a mortgage if you have only just started your job as a postal worker but not all lenders will accept the application. Some will want you to have been in the position for three months, possibly more. Some would also want to know that you are outside of probation.
The good news is that not all lenders have this criteria, some will allow you to apply for the mortgage on your first day of the job and there are even lenders that will allow you to apply up to three months before the position starts.
For this, they would want to see your job offer letter, your contract and may also insist on seeing the first payslip post-offer when it becomes available.
Your mortgage adviser would be able to recommend a lender accordingly in this situation.
Would I get a secured loan working as a postal worker?
The same way that mortgage lenders will not exclude postal workers, second charge lenders would be the same. They would be looking at how much you earn, how your income is made up, who your first charge mortgage is to, how much do you owe, what is the monthly payment, how much equity is within the house, your debts, commitments and more.
Again, secured loans are a complex mortgages and may not be suitable for you so you should always take advise when considering a secured loan or any other type of mortgage. To arrange a free consultation with a professional adviser, please complete the contact form.
As you’ll see, getting a standard mortgage, secured loan or buy to let mortgage should not be impacted by your job. Therefore, you should be able to obtain a mortgage for postal workers.
The challenge can be the way the income is made up and the maximum age that a lender may feel comfortable lending until given the amount of walking included daily.
If you are thinking of taking a mortgage and want to speak with a qualified professional, please complete the contact box.