Getting a mortgage as an NHS professional while juggling a demanding workweek is no easy task.
With so many lenders promoting discounts to key workers in 2021, there are a few things that you’ll want to compare before taking the plunge into property.
There really isn’t a one size fits all mortgage which is why we treat those who seek our advice as individuals. We’re on hand to answer your questions about NHS mortgage discounts but we’ve tried to make this guide as inclusive as possible.
So, whether you’re an NHS podiatrist planning to buy your first home or a seasoned buy-to-let landlord who also happens to be a nurse, this guide is for you.
Are there any NHS mortgage incentives?
Medical staff such as therapeutic radiographers, nurses and paramedics could qualify for a range of discounts, it’s usually just a matter of finding the best options and narrowing them down.
That’s where a broker comes in. They use their relationships with UK housing developers and lenders to compare a vast range of NHS offers.
Negotiating incentives and finding creative routes of saving you money in mortgage fees is part of what our brokers do every day and this service isn’t exclusive for NHS employees.
That means that whether you’re a non-clinical member of staff, a hairdresser, teacher, porter or pilot, we’ll help.
Housing developer incentives for NHS workers
Incentives and property offers will change throughout 2021 so for the latest information and a comparison relevant to your circumstances, ask a broker who can send and discuss the latest offers with you.
Incentives aimed at key workers and NHS employees might include:
Discounted property prices (ranging between £2,000 - £5,000 depending on the housing developer)
£500 off every £25,000 spent on a new home (offer varies widely between housing developers)
5% deposits. Some housing developers offer low deposit schemes though through schemes such as Help to Buy, many borrowers could qualify for this already.
5% deposit contributions. Some are also offering a 5% contribution towards deposits, up to £15,000. For a new build home costing £200,000, a £10,000 contribution could be sought.
Some developers offer cashback schemes which payout on completion of buying a new build home.
Flooring contributions up to a set value, kitchen appliances and even alarm systems may be negotiable in some circumstances.
A handful of lenders may consider providing a lower rate of interest on a mortgage during a promotional period if the borrower is an NHS employee.
Key worker mortgage schemes in 2021
The old key worker scheme was discontinued in 2019 but there are many other affordable housing schemes for NHS workers to access.
Rent to Buy
Rent to Buy isn’t exclusive to NHS key workers but it could be a viable option for those seeking more time to save to buy a home. It’s offered by local authorities and councils who set an agreed sale price for the property at the start of the agreement as well as a reduced rental rate which is payable for the time leading up to the purchase date of the property.
The scheme is offered to successful applicants who wish to purchase their chosen property in the near future and the good news is that even if the value of the property increases during the period of reduced rent, tenants will still pay the original agreed amount.
Our rent to buy brokers can explain the pros and cons of rent to buy based on your circumstances and can advise you how best to approach
Help to Buy: Equity Loan (2021-2023)
Help to Buy isn’t aimed solely at key workers but it is a popular choice for many NHS employees in England. A Help to Buy equity loan is provided by the government so that people can get onto the property ladder with saving just a 5% deposit.
The scheme is only open to first-time buyers purchasing new build properties marketed by registered Help to Buy developers. Luckily, there are a lot of them, giving buyers a greater choice of where to move.
To top of their own deposit, buyers borrow a minimum of 5% and up to a maximum of 20% (40% in London) of the full purchase price of a new-build home. This gives many the opportunity to bulk their deposits, buy a bigger property and access a better rate of interest for mortgages.
The loan is interest-free for five years but will need to be paid in full by the agreed date. After the interest-free years, you'll be charged 1.75% on the outstanding amount as interest and this increases each year by RPI plus 1%.
There are lots of factors to consider when weighing up the pros and cons of a Help to Buy Equity loan, so take your time and ask an expert to calculate your loan repayments, which will be on top of your mortgage.
Another government scheme aimed to help people onto the property ladder is Help to Buy: Shared Ownership.
This route to homeownership allows eligible applicants the chance to buy between a 25 - 75% share of a property, as opposed to 100%.
This can be a more affordable option for many NHS workers, though keep in mind that you’ll also have to pay rent on the percentage of the property that you don’t own.
Furthermore, if you decided later on down the line that you wanted to buy ore shares in your property, you can.
Military personnel will be given priority over other groups through the government-funded shared ownership schemes. However, some local councils and housing developers also have their own shared ownership schemes with their own priority groups which may include NHS workers.
First homes programme
The UK Government has launched a new home-ownership scheme, First Homes, which it says will offer potential first-time buyers including key Workers in England the opportunity to buy a newly built home at a discount of one-third of the market price, making it easier and cheaper for more people to get onto the property ladder.
Launching the scheme, Robert Jenrick, Housing Secretary, said: “Lower deposit and mortgage requirements for ‘local’ first-buyers would, along with the discount, save buyers an average of £100,000”
In the First Homes consultation which closed in April 2020, the proposals for a scheme to provide homes for first-time buyers with a 30% discount against market value was discussed, covering the design of the scheme and proposed planning changes to ensure they are delivered.
The ultimate details of the First Homes scheme are to be finalised, though in August 2020 it was announced that a pilot scheme of 1,500 affordable homes would be launched as part of the next Affordable Homes Programme (AHP).
Specialist mortgage advice and brokering for NHS workers
We’re proud to provide expert advice to NHS workers and feel confident in our broker’s abilities to source the most competitive NHS mortgage deals and discounts.
We’re here to work for you and can be reached on 023 8098 0304 or via our online form
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