In This Article
How do NHS workers get paid?
When we talk of NHS workers, we refer to the staff at an NHS hospital such as doctors, nurses and hospital admin staff.
How staff member gets paid will depend upon their role. Most NHS workers will get a basic salary that is the same every month.
Depending on where the applicant is based, they may also get a fringe benefit to help pay for costs incurred for being in a premium area.
Some NHS workers will also receive overtime for the hours that they do in addition to their contracted amount.
Similar to overtime is bank hours, which is also for hours of work in addition to the applicant’s standard working hours.
Lenders have their own rules and criteria so treat the different types of income differently from one another.
A mortgage adviser would take their time understanding how you are paid and then recommending a lender accordingly based on your needs.
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How do mortgage lenders view NHS workers?
Lenders view NHS workers in a similar way to how they will view other occupations.
Lenders will be interested in how much you earn, how your contract works, the hours that you work and what age you wish to retire.
They will also need to know how much you pay into your pension through your NHS payslips as some lenders deduct this from your affordability.
In addition to this, like any other applicant, lenders will need to know the amount of deposit you have, full details of your debts and your credit history.
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How do mortgage lenders view fringe benefits for NHS workers?
Fringe benefit is an allowance that some NHS workers receive for working in a certain area.
This is usually a premium area where living costs are higher. As a result, the NHS pays an additional amount to help workers get by.
As the amount received is the same every month, lenders will often use 100% of this income in addition to your basic salary when calculating affordability.
A skilled mortgage adviser will be able to get a full understanding of your income to advise what a lender would use and the amount that you can borrow.
I am transferring hospitals to another NHS position. Can a lender give me a mortgage?
Some lenders can lend based on you transferring to a new hospital.
This usually happens when an applicant is relocating to a new area and plans to remain with the NHS.
To verify the new position, lenders will usually want to see a letter from the new hospital confirming the start date. They may also wish to see a contract of employment to understand the full terms of the new position.
Different lenders will request different documents so your mortgage adviser would be able to confirm what would be needed during the process.
I get paid bank hours by the NHS. Can I use these towards a mortgage?
Most lenders can accept bank hours that are paid from the NHS. Usually, lenders will treat this pay the same way that they would treat overtime from another employer.
Some lenders will calculate hours/pay over a certain period, e.g. 3 – 6 months and then take a percentage of this income.
Some lenders would be willing to take 100% of his income however many accept a lower percentage, for example, 50% – 65%.
To verify the bank income, lenders would usually request payslips to cover the months that they wish to see (for example, 3 months of payslips).
Lenders change their rules regularly, so ask your mortgage broker to confirm how much of your bank income the lender would use.
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What age will a lender lend to an NHS worker?
The maximum age an NHS worker can take a mortgage will depend on both the lender and the applicant’s retirement age.
Some specialist lenders are willing to lend until age 80 based on earned income, but most lenders are not able to go until that age. Many lend until 70 or 75.
If you are using a lender that goes past this age, they will need to be comfortable that the job can be done in later life.
Whether the lender will accept an NHS position until age 80 or not would often depend on the underwriter’s comfort levels with the application.
To get a good understanding of the maximum age that a lender would go to for your situation, speak with an experienced mortgage adviser.
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Would NHS workers need a special type of mortgage broker?
NHS workers do not necessarily need a special type of mortgage broker to place their mortgage.
It is however important to look for a mortgage adviser that has experience in similar types of transactions.
Understanding how bank income works, fringe benefits and hospital relocations (if applicable) will be advantageous in approaching the correct lender.
You should ask your mortgage adviser for details of their previous experience and whether they have dealt with applications similar to your own.
Always do your due diligence when picking a mortgage adviser.
I’m an NHS worker with bad credit. Could I get a mortgage?
It is not impossible for an NHS worker to get a mortgage if they have bad credit.
It would depend on the overall situation, including income, deposit level, age and debt obligations.
Regarding the adverse credit, your mortgage adviser would need to understand what the bad credit was.
For instance, adverse credit can mean bankruptcies, debt management plans, individual voluntary arrangements, defaults or County Court judgements.
Your broker would need a copy of your credit file to assess the full situation.
From there, if it is possible to get a mortgage, your broker could recommend a mortgage accordingly.
Would an NHS worker get a buy to let mortgage?
Absolutely, NHS workers can get buy to let mortgages. They would be assessed like any other occupation so knowing full details of the applicant is required.
The lender would need to understand how you were paid as some have minimum income criteria. This is often around £25,000 to £30,000.
However, not all lenders have this, but they would still need full details of your NHS income.
The amount of rent that your buy to let property will generate will help to determine how much you will be able to borrow.
A common deposit amount for a buy to let property is 25% subject to it passing the rental stress test.
If you are thinking about a buy to let property, you should look for a mortgage adviser with experience in buy to let mortgages.
They can then understand your income and full details of the property to make a recommendation.
Conclusion
It is certainly possible to get a mortgage if you are an NHS worker. Understanding your income in full is essential for a mortgage adviser to get you a mortgage.
You may be paid additional income on top of your basic salaries such as fringe benefits or bank hours.
In addition to this, you would likely have an NHS pension deduction that some lenders will factor into their affordability assessment.
It would be wise to look for an experienced mortgage adviser that can understand your income, deductions and what you are looking to do.
If you would like I NEED ADVICE to match you with a qualified mortgage adviser that can tell you your options, please complete the contact form.
They are experienced, which can boost your chances of being approved.
