Mortgages for Nurses

Despite your highly regarded career, it can be difficult to get onto the property ladder as a nurse. The good news is, whilst high street lenders are not always able to help, securing a mortgage is perfectly possible with the right advice.

In this article, we’ll look at the mortgages available to nurses, and how to best approach your application.

Whether you’re employed, self-employed or agency staff, a specialist broker can help you find a suitable lender.

Are there specific mortgages for nurses?

No there aren’t, however, there are lenders that are more accommodating to various nurses income scenarios. These lenders understand the complexities that sometimes make it difficult for nurses to meet high street lender criteria, and can often be more flexible with the related student debts.

There are also a number of schemes to help those who are unable to secure a standard residential mortgage, so whatever your circumstances, it should be possible to buy a home and get a favourable mortgage deal, with the right advice on your side.

Do NHS workers get a discount?

Generally there are no discounts available to nurses, however, a handful of lenders still sometimes offer preferential interest rates or reduced mortgage arrangement fees for certain NHS clinical staff, including nurses.

However, this practice is far less common than it used to be, and should by no means be expected.

This type of incentive is offered entirely at the discretion of each individual lender, and can be very hard to come by. That said, a broker with specialist knowledge of mortgages for nurses and NHS clinicians will be aware of any offers that are currently available.

Types of mortgages available

For the most part, nurses have access to the same type of mortgages as other borrowers. You may have to approach more specialist lenders, but it’s generally possible to get a standard residential mortgage, remortgage, or buy-to-let if you’re able to meet their criteria.

The good news for those who are unable to meet even specialist lenders’ criteria, is that a wide range of government schemes are in place to help you:

Can agency nurses get a mortgage?

Agency workers can find it more difficult to track down a willing mortgage lender, particularly if bank work is your only employment. There are lenders that welcome applications from bank nurses, however, you’ll typically need to demonstrate more substantial proof of income and longer continued employment.

The documentation needed for proof of income will depend on how you’re paid, as per the above section.

PAYE bank workers without a fixed-term contract in place will usually need to show 12 months or more of continued work within their current role. A self-employed bank nurse typically needs to provide 2-3 years’ worth of proof of income.

How a broker can help

As some nurses have more complicated employment patterns, not all lenders understand the nature of their income well enough to calculate mortgage affordability, and therefore it can be difficult for nurses to qualify for a mortgage with high street lenders.

There are, however, lenders that specialise in mortgages for nursing staff, and a broker with expertise in this niche of lending will be best placed to help you access them.

Along with an in-depth understanding of employment types and working patterns common within the industry, specialist brokers can take responsibility for the majority of the liaison between parties during the application process on your behalf.

This can be a blessing for those on long, and/or out-of-hours shifts, that lack the time to manage the process themselves.

Eligibility and criteria

There are standard criteria that you will need to meet in order to qualify for a standard residential mortgage, which include:

• Affordability – This can be one of the most difficult criteria to fulfil as a nurse, as pay rates are notoriously low. Some lenders are willing to consider shift premiums, and regular overtime, in addition to your base salary, however, which can improve your chances.
• Employment status – There are a number of employment types that you may have as a nurse, for example, you could be employed, self-employed, bank staff, or a combination of them all. It’s important to find a lender who understands the complexities of your employment type(s).
• Deposit availability – Nurses do not usually need to provide a larger deposit, although some lenders may ask for this if you are an agency nurse. The deposit you require will depend on the type of mortgage you choose, however, 5% is typically the minimum required.
• Age on application – Almost all mortgage products have a minimum and maximum age for application, however, if you are approaching retirement, or already retired from the nursing profession, a nurse-friendly lender may still be able to help you.
• Credit status – A strong credit score can help you to access better mortgage rates and provide access to more lenders, however, there are some that specialise in bad credit mortgages.

If you apply through one of the home ownership schemes described above, some of these will still apply but are likely to be more flexible.

Each scheme will also have its own set of criteria of eligibility, ranging from income caps to restrictions on the property value.

Documentation needed for your application

The documents needed to support your application are mainly focused on proving your income, but you will also need to provide proof of UK residency and your current address.

The type of proof needed to prove your income will depend on your employment type. If you have more than one employment type, you’ll need to supply multiple forms of proof:

• Employed (PAYE) nurses – A typical requirement is 3 months’ worth of payslips, although some lenders may ask for more, especially if you’re newly qualified or your income fluctuates significantly from one month to the next. Ensure payslips are up to date with your current address, grade, and pay scale point – particularly if you’re an NHS employee, as sometimes payslip updates are delayed.

You may also need to provide additional evidence for overtime and shift bonuses, such as your P60, if this is not clear from your payslips.

• Self-employed nurses – Some self-employed individuals are regarded as higher-risk borrowers than their employed counterparts, so this requirement is not specific to nurses. You will usually need to provide at least 12 months’ worth of tax year overviews as well as bank statements for a minimum of 3 months, but this requirement varies from one lender to the next.

Things to consider

If you’re a nurse applying for a mortgage, here are some other factors to think about…

Additional income from overtime and shift allowances

Some lenders will consider payments received in addition to your base salary, such as overtime and shift allowances, providing you can demonstrate that they’re consistent.

Most lenders will be looking for you to prove at least 3 months of consistent additional earnings, in order to use them in your mortgage calculation. Agency workers are likely to need to prove a more substantial consistent period of additional income.

Second income

If you’re employed in either 2 separate nursing roles, and/or have more than one employment type, the lender will usually consider the best-paid role your primary income and the other role as secondary income.

Almost all lenders will consider 100% of your primary income, but some lenders may cap their consideration of secondary income to around 50%.

Some lenders are even willing to consider a larger percentage of your income if you apply via an approved intermediary (broker).

Get matched with a broker experienced in mortgages for nurses

Whether you’re an employed, self-employed or bank nurse, the brokers we work with can help you to find those lenders who are most likely to be able to help you, and willing to consider all of your income.

Our free broker matching service is rated 5-stars on Feefo, and with a few simple details, we can introduce you to an adviser with expert knowledge of mortgages for nurses and nursing staff.

Complete our contact form or contact us directly on 0808 189 0463 and we’ll pair you with a broker for a free initial no obligation chat whose experience best matches your needs and circumstances, immediately.