As a firefighter, you dedicate your life to serving the community, 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 firefighters and who may offer favourable mortgage terms.
Seeking personalised advice is key. Working with a mortgage broker experienced in helping firefighters can 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 firefighter mortgages
There are a number of lenders who provide special mortgages for firefighters and fire service personnel.
While these may not strictly be unique mortgages, the lenders do offer enhanced terms and special deals, not available to the general public.
A major benefit is that they will understand your pay structure, work patterns and potential for future promotion.
Your employment is also stable and secure, making for an excellent mortgage borrower!
As good as these deals may be, it’s always advisable to compare them to the standard mortgage rates, so you don’t limit your options.
Potential for Better Interest Rates: Some lenders offer competitive interest rates to professionals in specific industries, including the fire service. Jobs with stable income and opportunities for advancement make you an attractive borrower.
Increased Borrowing Potential: While the standard borrowing limit is often 4.5 times your income, some lenders may extend this to 5 or 6 times your salary. This increased borrowing power opens up more property options, especially if you’re early in your career or buying on your own.
Understanding Your Pay Structure: Your income often includes shift allowances and overtime. Lenders specialising in mortgages for key workers understand this structure and can assess your affordability more accurately compared to lenders who might be unfamiliar with it.
Higher Loan to Value: If you have a smaller deposit, look for lenders specialising in mortgages for fire & rescue personnel. Some may offer higher Loan-to-Value (LTV) mortgages (up to 95%), which can help you get on the property ladder sooner.
Eligibility criteria
You need to be employed as a fire and rescue service worker, this will make you eligible for some of the enhanced mortgage options.
The basic mortgage eligibility criteria remains:
- Minimum age 18
- Good credit score
- 3-6 months of payslips
- At least a 5% deposit
- Low debt to income ratio
- Good affordability
Don’t forget that the lender needs to approve you and your property.
The reason we mention this is that not all properties are acceptable to all lenders. The most obvious aspect to watch out for is how the property is constructed.
If it is made from concrete, or has a steel frame, then you will find it more difficult to secure a mortgage.
Read more about non-standard construction mortgages
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 firefighter borrow?
While there’s no fixed borrowing limit specifically for firefighters, the amount you can secure for a mortgage depends on a few factors.
Your income is primary, with lenders considering both your base salary and regular overtime earnings. Providing detailed payslips that accurately reflect your earnings and overtime is essential.
Most traditional lenders use a maximum income multiple, often 4.5 times your annual salary, to set a baseline for how much they’ll lend. However, some lenders have special programs for fire fighters and may offer even higher income multiples, like 5x or 6x your salary.
This means you could potentially borrow more.
Here’s an example to illustrate the difference:
Consider a firefighter with an annual salary of £35,000.
A standard lender using a 4.5x multiple might offer up to £157,500 for a mortgage.
In comparison, a firefighter-friendly lender offering a 5x multiple could extend a loan amount up to £175,000.
Second jobs and overtime
Lenders will often consider income from a second source when assessing your application, adding to your overall earnings and boosting your borrowing potential.
However, lenders usually want to see consistency with your second job.
Providing proof that you have had the second job for at least 6 months or more will show it’s a dependable source of income. Furthermore, if your second job is within a separate profession and less physically demanding than firefighting, this can be an advantage.
Keep in mind that different lenders have different policies when it comes to second job income.
Some might factor in 100% of your earnings, while others may only consider a percentage such as 50%.
To ensure your second job income has the maximum impact, finding the right lender is essential. A mortgage broker can help you identify lenders who are specifically favourable towards fire service personnel with multiple income sources.
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
By working with an independent mortgage broker you will get access to the widest possible choice of lenders and mortgage deals.
Experienced advisers will be able to quickly pinpoint the deals that best suit your occupation as a firefighter.
They can then check whether you qualify for any special offers.
Your broker can arrange an agreement in principle, or AIP, which will provide a good idea about whether a specific lender will approve the mortgage you need.
They will then be able to help you complete the application forms and collate (and check) all of the necessary documents and paperwork.
How not to apply
It can be tempting to just go it alone and apply for a new mortgage direct with a lender.
And for some this works fine.
But there’s two potential issues:
- You may not have found the best deal. A broker searches over 100 lenders when they research your mortgage options, ensuring you get a competitive deal
- The lender may not offer the amount you need to borrow, based on your income. This is because each lender has a different way of assessing your overtime and second job income.
If you apply once and then re-apply with a new lender this could lower your credit score and affect your ability to get a new mortgage or other types of credit.
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 fire brigade payslips, Most recent P60, Company accounts, Self-assessment returns, SA302, CIS vouchers, 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
Your fire fighter occupation may grant you access to exclusive or enhanced deals that general mortgage products don’t offer.
The best way to find and compare these specialist 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
Firefighters don’t automatically get the ‘best’ mortgage rates, but they may qualify for reduced rates, larger loans, or more flexible terms from certain lenders.
Always compare options from multiple lenders and focus on your overall financial picture to secure the most competitive mortgage deal.
No, you shouldn’t feel restricted.
While some deals are marketed for key workers, it’s always wise to compare the entire mortgage market to find the most competitive rates and terms for your needs.
A larger deposit (generally at least 10% of the property value) can make you a more attractive borrower and potentially unlock better deals However, even those with smaller deposits may find suitable options.
A mortgage adviser is there to help you get approved for a new mortgage.
But they want that mortgage to be right for you, and your future plans.
The big advantage of using a broker is that they can source your mortgage from over 100 lenders and 1000’s of mortgage deals.
Once agreed, they will help with the application and associated paperwork etc.
Absolutely! A mortgage broker specialising in mortgages for firefighters can guide you through the process, finding suitable lenders and ensuring your income is presented in the best light.
They can also take away much of the burden of applying for a new mortgage, working with your shift patterns.
Yes, a good credit score demonstrates responsible financial habits and increases your chances of qualifying for the best mortgage rates. Checking your credit report before applying is always a good idea.
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.
