As a nurse, you dedicate your life to helping others, working long and unpredictable hours.
Your unique profession and pay structure can sometimes create challenges when it comes to securing a mortgage. However, the good news is that there are lenders who specifically understand the income structure of key workers like nurses.
Working with a mortgage broker experienced in helping NHS nurses can provide you with personalised advice and help you explore the different options.
They can match you with lenders who consider your overtime and shift allowances effectively, and potentially access higher income multiples.
Understanding nurses mortgages
Your income as a nurse will rarely be the same each month due to shift work, over-time and allowances.
Some lenders struggle to properly understand this, they prefer to see broadly the same amount earned each month.
While there aren’t any specific mortgages for nurses, there are a number of lenders that have chosen to embrace the nursing profession and are happy to consider applications despite the fluctuating income.
By working with a specialist broker, you can gain access to lenders that will accept over-time and shift payments, enabling you to get the mortgage you need.
The brokers that we work with have a great deal of experience helping NHS nurses, doctors and other medical professionals.
They ‘get’ how nursing works, the long working hours and varying shift patterns.
Is it more difficult to get a mortgage as a nurse?
There are a couple of aspects of a nurses job that can make getting a mortgage a bit more complicated, or difficult.
The main one tends to be shift work and overtime. Irregular hours and fluctuating amounts of income can be challenging for some lenders to assess.
Agency work will also cause some lenders concern, particularly if you haven’t been doing this for very long.
Fortunately, by working with an experienced mortgage adviser you can get access to the lenders that understand the nursing profession and how your income is earned.
Eligibility criteria
There are always some basic details that all borrowers need.
The basic mortgage eligibility criteria:
- UK resident
- Minimum age 18
- Good credit score
- At least a 5% deposit
- Low debt to income ratio
- Good affordability
As an NHS nurse you may be eligible for higher income multiples and a higher usage of regular overtime and allowances. Your overtime will be assessed over the last three months.
Newly qualified nurses
It’s common for a newly qualified nurse to move closer to where their placement is, and this may involve applying for a mortgage.
You can apply for a mortgage even if you are newly qualified, though it is important to only approach lenders that are amenable to this.
Agency nurses
Mortgages are available for agency nurses and bank nurses.
The challenge is getting a lender to fully appreciate your fluctuating income and short-term contracts.
As your ’employment’ is rarely guaranteed, lenders will be cautious and will look to take an average of your earnings. The longer you have been working under an agency, the better, as it gives lenders more confidence.
Pop in a few contact details and a qualified broker will call you back when convenient.
Types of mortgage
You will have the full range of mortgages available to you. Although the specific choices will differ between lenders.
Residential
Residential mortgages are for the home that you live in. A purchase mortgage will allow you to buy a property and a remortgage switches an existing mortgage to a new lender.
Options are available for first time buyers, guarantor mortgages and JBSP mortgages.
Investment
Investment property mortgages would be for:
Interest rates
The actual rates will always depend on the lender but the main interest rate options are:
Fixed rate: Fixed interest rate mortgages are available in a range of different terms, usually between one and ten years. Once the fixed rate starts your monthly payments won’t be affected by interest rate changes.
Tracker rate: A tracker rate mortgage is a type of variable rate mortgage, which means that the interest rate you pay can go up or down in line with the Bank of England’s (BoE) base rate. Unlike fixed-rate mortgages, a tracker rate can change so the amount you pay each month could go up if interest rates rise.
Variable rate: Variable rate mortgages are linked to the lender’s Standard Variable Rate (SVR). The interest rate you pay will be set by your lender and won’t necessarily rise or fall in line with changes to the Bank of England Base Rate. Your repayments will change when the SVR changes.
Repayment methods
The repayment method is the way that you will pay the mortgage back. There are actually three different options but not all of these will be permitted by your lender.
- Repayment – The traditional capital and interest mortgage where you pay back some of the mortgage each month.
- Interest only – With an interest-only option you only pay the mortgage interest each month and nothing towards the capital sum.
- Part and part – A part and part mortgage is a combination of 1 & 2 above.
Mortgage term
The term is the number of years that your mortgage is setup for.
Traditionally, the standard mortgage term has been 25 years. With rising mortgage and housing costs borrowers are now choosing longer terms, such as 30 and even 40 years. These are sometimes called marathon mortgages.
The term will directly affect the monthly cost of a repayment mortgage, the longer the term, the lower the repayments.
How much can a nurse borrow
As a nurse, you will normally be able to borrow upto 4-5 times your provable earnings.
Here are some examples of how this works:
| Earnings pa | 4 x multiple | 5 x multiple |
|---|---|---|
| £30,000 | £120,000 | £150,000 |
| £35,000 | £140,000 | £175,000 |
| £40,000 | £160,000 | £200,000 |
However, several other factors influence how much you can actually borrow:
Income: Your salary or self-employed income, ideally demonstrated over several years, is the primary factor. Lenders may also consider regular overtime and shift allowances.
Deposit: The larger your mortgage deposit, the lower the loan-to-value (LTV) ratio, potentially unlocking better interest rates and increasing the amount you can borrow.
Credit Score: A strong credit score indicates financial responsibility and may result in lenders being willing to lend you more.
Affordability Assessment: Lenders will thoroughly assess your income and outgoings (including other debts) to determine how much you can comfortably afford to repay each month.
Affordability
All lenders will perform some affordability checks, which looks to refine the initial figures given by using income multiples. This assesses how you would be able to afford the new mortgage monthly repayments.
They take your earnings as a starting point but then include what you spend your income on. This will include living and travelling expenses as well as debt repayment and other fixed commitments.
If you are over committed, the lender may decline the application or offer a lower mortgage amount.
Occasionally your income arrangements can be the problem. Some lenders may not include certain elements of your income into the calculations, or only use 50% instead of 100%.
This can be avoided by always using a mortgage adviser to find the right lender for your style of income.
Overtime and allowances
Most nurses need to utilise their overtime and allowances to qualify for a higher mortgage.
This is fine and there are lenders that accept these extra payments.
Generally lenders will take an average over the last three months, so keep hold of your payslips.
How much do mortgages cost?
The cost of a mortgage is affected by the loan size, the interest rate and the loan term.
You can use our mortgage calculator to accurately calculate the monthly repayments.
These pages may also be of interest:
Average Mortgage Payments: Understand what homeowners across the country are paying and how property location can affect your mortgage outlay.
Mortgage Repayments Guide: Learn more about the monthly cost of different mortgages, including repayment and interest only.
How much do you need to earn: We explain mortgage affordability and give a guide on how much you need to earn.
How to apply
Perhaps the most helpful step is finding the right mortgage adviser.
An adviser who specialises in mortgages for nurses, doctors, and healthcare workers has several advantages:
- They know how to present various income streams (base salary, shift allowances, overtime, locum work) in the most advantageous way to lenders. This can significantly increase your borrowing potential.
- Specialised brokers have built relationships with lenders who understand the financial realities and future earning potential of NHS careers.
- They can help you solve student debt considerations, frequent relocation history (if applicable), and short-term contracts, smoothing out any potential complications.
- A good broker takes the burden of finding the right mortgage off your shoulders, letting you focus on your demanding work within the NHS.
Before applying, organise your paperwork
Employed:
- Payslips (last 3-6 months) to verify your income
- P60
- Recent tax return or equivalent
- Employment contract
- Personal bank statements
Self-Employed (e.g. agency):
- Certified accounts (ideally the last 2 years, though some lenders may consider less)
- SA302 tax calculation forms to show your income history
- Personal bank statements
A mortgage adviser who understands the specific needs of nurses is invaluable. They have access to lenders offering preferential schemes and terms for your profession, saving you time and effort.
Before formally approaching a lender, consider obtaining an Agreement in Principle (AIP). This gives a strong indication of a lender’s willingness to offer you a mortgage and can strengthen your position when making an offer on a property.
Whichever way you choose, your mortgage adviser will guide you through the process.
How long does all of this take?
It’s important to leave enough time for your mortgage application to go through all of the necessary checks. This will also make it less stressful.
Prior to applying you need to get yourself mortgage ready, with all of the right documentation (see below).
Give your mortgage adviser at least a week to talk to the various lenders and source the best deal.
The underwriting process begins once you have formally applied and this normally takes 2-4 weeks.
During this time the property needs to be visited by a valuer and then a report is sent back to the lender.
If the lender asks for further documents, or other issues crop up, this will lengthen the process.
In a hurry?
If you are in a hurry to get your mortgage arranged you must tell your broker before you apply.
Broker’s are aware of the underwriting timeframes taken by lenders. If you need a speedy response then they need to choose a lender who has the ability to do this for you.
Improve your chances of success
Getting yourself organised and ‘mortgage ready‘ before applying for a mortgage is one of the best things you can do.
Whether you are buying your first home or thinking of moving somewhere new, there are a number of ways that you can improve your situation, which will also speed up the mortgage process.
It’s really important to allow yourself enough time to gather everything together.
Credit status
Get a copy of your credit report. The report will show all sorts of credit related information and you need to make sure that it is all correct. Any errors need to be fixed.
Mortgage broker
Speak with a mortgage broker, they will be able to see how well you ‘fit’ a lenders criteria and can make practical suggestions and tips on how you can improve your situation.
Decision in principle (DIP)
Ask your mortgage adviser whether a Decision in Principle, or DIP, would be a good idea. Most first time buyers will benefit from one. A DIP or AIP will provide some extra confidence in your ability to borrow the size of mortgage you need.
Electoral roll
One factor that can greatly impact your mortgage application and creditworthiness is your presence on the Electoral Roll. The Electoral Register, is a comprehensive record of eligible voters in the United Kingdom. Am I on the Electoral Register?
Financial Associations
If you have previously applied for any type of credit with another person, the Credit Reference Agencies (CRA) will have ‘linked’ you to the other party. If an old or irrelevant financial association is still on your report, it is important to remove it.
Paperwork
Get your paperwork in order. The main documents needed are: Driving licence, Passport, Utility bills,
Last three/six payslips, Most recent P60, Self-assessment returns, SA302, Bank statements, Proof of deposit
Pay your bills
on time. (always)
Don’t apply
for any more credit before or during the mortgage application process. This could seriously damage your chances of being approved.
Credit limits
Stay well within your credit limits and if possible, reduce any debts held on credit cards or store cards.
Mortgage broker
Contact an experienced mortgage broker. Oh, we said that already. Don’t forget!!
How a broker can help
The best way to find and compare deals is by using a qualified whole of market mortgage broker. An experienced broker will do the research on your behalf, finding your ideal mortgage from over 100 lenders.
They will understand your industry, your pay structure and the lender’s that favour careers like yours.
Searching for your own mortgage is very time-consuming and can also be quite confusing. While some people are happy to do this themselves, others recognise the advantages of using a qualified broker.
- What is a whole of market mortgage broker?
- What does a mortgage broker do?
- Do mortgage brokers charge a fee?
- Why should you use a mortgage broker?
- Why would you use a mortgage broker instead of a bank?
- How do mortgage brokers get paid?
- Mortgage broker vs Bank: Which is better for you?
- What are the advantages of using a mortgage broker?
- Ten Reasons to Use a Mortgage Broker
Ready to explore your options?
If you’re just about to start a new mortgage journey and could use the guiding hand of a professional, don’t hesitate to reach out to a reputable mortgage broker.
An independent mortgage broker can access over 100 lenders on your behalf. They will make the process smoother and more profitable than going it alone.
Keep reading, keep asking questions. The more you know, the better decisions you can make.
Find a mortgage broker
While there aren’t mortgages exclusively for nurses, some lenders specialise in mortgages for NHS staff and key workers. These lenders often have flexible criteria and a better understanding of your pay structure.
Some mainstream lenders may struggle with fluctuating income. However, a specialist broker can connect you with lenders who understand the realities of shift work and factor in your overtime and allowances for a more accurate affordability assessment.
Yes! Many lenders will consider applications from newly qualified nurses. A broker can help assess your options and find lenders who are comfortable with your income level.
Yes, often a gifted deposit from a close family member can be used. The lender may require the gift provider to sign a declaration confirming that the funds are non-repayable.
As a nurse, midwife or ward manager, the last thing you want to be doing is searching around for different mortgage deals.
Nurses can benefit in 2 main ways:
- The broker will do all of the work for you. Chasing lenders, asking questions, comparing deals etc
- Your broker will know the lenders that want to lend to NHS nurses, taking your additional payments and overtime into consideration.
Yes, mortgages are available for first-time buyers.
We work with one of the largest and most experienced independent mortgage brokers in the UK.
They have been experts in the mortgage industry for over 45 years, so they understand the challenges that clients can face when looking for a mortgage.
With qualified advisers based across the UK, they have the experience and expertise to help guide you through the complex process of buying a house, remortgaging, raising bridging finance or investing in the property market.
Fully FCA regulated, they have more expertise across more lending solutions than any other broker and have specialist teams in place to work with clients through every stage of their journey.
To get started please call us on 0330 030 5050 so we can match you to a specialist broker, or use the form below.
