How the NHS Mortgage Can Help You Buy a Home
For a few years, the government offered NHS a special mortgage scheme to help its employees buy first homes. However, this scheme was cancelled in 2019, and since then, NHS employees have had to look elsewhere for mortgages. While they no longer receive preferential treatment, they can still get competitive rates by shopping around and comparing offers from different lenders. And with a little bit of careful planning, they can still secure the home of their dreams.
There are a wide range of products on offer and expert mortgage advisors on hand to help you find the right mortgage for purchasing your first home.
In order to get any type of NHS mortgage discount, you will need to work with an mortgage advisor. This person will help you navigate the process and make sure that you get the best possible deal. It is possible that you may get a better deal if you are an NHS employee.
Is there a NHS Mortgage Scheme? (Keyworker Housing Scheme)
The NHS Mortgage Scheme was a government-backed initiative that offered competitive mortgage rates and products to eligible NHS employees looking to purchase first homes. The scheme offered a range of benefits including:
-Competitive mortgage rates
-offering homes at a discount of at least 30% compared to the market price.
-Expert mortgage advice from qualified advisors
-Simplified application process
Unfortunately this scheme was finished in 2019 and is no longer available to NHS staff.
Who is eligible for the NHS Mortgage?
To be eligible for the NHS Mortgage, you must be an employee of the National Health Service. This includes all staff employed by hospitals, GP practices, dental practices, and other healthcare organisations within the NHS.
What do you do next? Speak to a Mortgage lender
Buying a home is a big financial decision, and one of the most important factors to consider is the interest rate on your mortgage. Shopping around for the best rate can save you thousands of pounds over the life of your loan, so it’s important to do your research.
A good place to start is with a mortgage lender. They can provide you with an estimate of the interest rates available to you, based on your financial history and credit score.
They can also give you guidance on which type of mortgage would be best for your situation. Taking the time to speak with a mortgage lender is an important step in getting the best rate on your mortgage.
What schemes are available for NHS mortgage?
Take a look at some of the current schemes available for NHS staff to secure a mortgage. Although these are not NHS specfic schemes, they will help you secure your mortgage. A mortgage lender can give you the full details of each of these listed below and if you show valid ID, you may even get better interest rates.
HELP TO BUY: Equity Loan
The Help to Buy equity loan scheme was introduced in 2013 by the UK government, with the aim of helping first-time buyers and NHS staff purchase a property. The scheme allows buyers to put down a deposit of just 5% and take out a mortgage for the remaining 75%. The government then provides an equity loan for 20% of the property value, which is interest-free for the first five years. After that, buyers must pay interest on the loan.
The Help to Buy equity loan scheme has proved popular with first-time buyers in the UK, with over 80,000 properties purchased through the scheme since it launched. In order to be eligible for the scheme, buyers must be aged 18 or over and have a household income of less than £80,000 per year.
Properties must also be located in England and have a purchase price of less than £600,000. If you are looking to get on the property ladder in the UK, the Help to Buy equity loan scheme could be the perfect option for you.
HELP TO BUY: Mortgage Guarantee Scheme
The Help to Buy Mortgage Guarantee scheme was introduced in the United Kingdom in 2013. The scheme is designed to help people who are struggling to raise a deposit for a mortgage. Under the scheme, the government guarantees a portion of the loan, making it easier for people to secure a mortgage.
Since its launch, the scheme has helped over 120,000 people to buy a property, including NHS staff wanting a NHS mortgage. The scheme has been particularly popular with first-time buyers and families looking to get on the property ladder.
In recent years, there has been an increasing demand for help to buy properties due to the rising cost of living and housing prices. The government has responded by increasing the amount of money available under the scheme.
If you are thinking about buying a property, the Help to Buy Mortgage Guarantee scheme could be an option worth considering.
HELP TO BUY: Shared Ownership Scheme
The government’s shared ownership scheme is a housing initiative that allows eligible applicants to purchase a share of a property (usually between 25% and 75% of the total value) and pay rent on the remaining portion. The scheme is available to first-time buyers as well as those who have previously owned a home but can no longer afford to do so. In order to be eligible, applicants must be employed and have a household income that does not exceed certain limits.
Who is eligble for an NHS Discount Mortgage?
If a lender offers a NHS Discount on your mortgage then you must be employed on a permanent contract as ‘clinical staff’ by one of the following NHS areas:
- GP surgeries
- Health Protection Agency
- NHS Ambulance Trust
- Primary Care Trusts for NHS
- National Blood Transfusion Service
- Dental practices – NHS status
- Mental Healthcare – NHS status
- NHS Direct
Do NHS staff get Mortgage discounts?
There is no specific NHS mortgage deal at the moment. However there are lenders which will give you a better rate on your mortgage due to your employment in the NHS. You will also have access to the help to buy schemes listed above.
Conclusion – NHS Mortgage
The process of getting an NHS mortgage can be complicated, but working with an experienced advisor can make it much easier. With their help, you can make sure that you get the best possible deal on your loan.
If you are thinking about buying a home, be sure to talk to an NHS mortgage advisor today!
