Reports in the media constantly highlight the difficulties facing key workers like nurses who want to get on the property ladder but are faced with difficulties relating to affordability. The problem is exacerbated in the London area, where average house prices are so much higher.*
Securing mortgages for nurses and owning your own home needn’t be an impossible dream. Your profession is respected and there are many mortgage lenders who are willing to consider you for a standard residential mortgage, despite the challenges posed by issues like lower pay, short-term or agency contracts and complex shift patterns.
As a nurse, you have access to the same mortgage options as any other applicant. At Mortgage360, we’re here to help you access the right lenders and secure the right deal. Take a look at our mortgage affordability calculator to get started.
* Source: Mortgage Strategy. 15 February 2023.
Is it difficult for nurses to get a mortgage?
Nurses are often subject to variable working arrangements, complex shift allowances and fluctuating overtime pay, which can make it more difficult for a mortgage lender to assess income and affordability based on their standard processes.
Add to that the complexity of bank or agency nursing shifts often undertaken by nurses employed on permanent NHS contracts, plus the probability of student debt and high street lending criteria are often tricky to satisfy for most lenders.
Your basic fixed salary may be supplemented by flexible shift patterns and overtime earnings, which are difficult to forecast and make it more complicated to assess your income over a period of time.
None of this means you won’t be able to secure nurses mortgages, but rather that you will benefit from seeking the assistance of specialist mortgage brokers, who will be able to identify specialist lenders sympathetic to your situation.
Do nurses get cheaper interest rates on mortgages?
There are no specific mortgage discounts for nurses, and nurses are often subject to variable working arrangements, complex shift allowances and fluctuating overtime pay, which can make it more difficult for mainstream lenders to assess income and affordability based on their standard processes.
Can newly qualified nurses apply for a mortgage?
If your finances are in order and your credit history is good, there is no reason why you shouldn’t apply for a mortgage as a newly qualified nurse, despite having little or no employment history. The same goes for bank, agency and student nurses.
It may be more challenging, but you can even put in an application before you start your first placement. You’ll need all the usual documentation for a mortgage application.
Are there key worker mortgage schemes for nurses?
The popular Key Worker Mortgage Scheme ended some years ago and the Help to Buy Equity Loan scheme is now closed to new applicants, but nurses can access the government’s First Homes Scheme which has been running since June 2021. Your household has to have a combined income of less than £80,000 to qualify (£90,000 in London).
Other government schemes include the First Homes Scheme, which relies on a network of affordable homes across England, which are then made available to eligible people for 30% less than the market value for the specific location. These homes can then only be sold on to other eligible applicants, so the property holds this discount in perpetuity.
In addition, there are Shared Ownership schemes allowing you to acquire as little as 10% of a home up to 75%, and pay rent on the remainder. You can increase your share over time, using a process known as ‘staircasing’.
If you rent a local council or housing association-owned property you may be eligible to buy this under the Right to Buy scheme. Talk to your mortgage advisor.
Can agency nurses get a mortgage?
If agency or bank work is your only source of employment, then securing a mortgage deal can be more challenging. Mortgage lenders will expect you to be able to provide more evidence of your income and your stability of employment.
If you’re paid on a PAYE basis but have no fixed term contract of employment, you will be expected to evidence proof of employment in excess of 12 months. If you work on a self-employed basis, this can extend to two to three years, but this is no different to any other self-employed professional.
If you can evidence a good credit history, savings for a good deposit and healthy personal financial circumstances, this will help with your application and secure the right mortgage deals.
Can I get a mortgage as a bank nurse?
If your sole source of income is as a bank nurse through an agency or agencies, then it is possible to get a mortgage, but you must be able to evidence a consistent track record of your working patterns and earnings over a period of time. Bank nurses should consult with a professional mortgage broker to optimise their application.
Will lenders take my nights, shift allowances and overtime into consideration?
Nurses often have to contend with presenting a more unusual income structure when applying for a mortgage, taking into account shift patterns, overtime payments and agency income, amongst other things.
Although some mortgage lenders will only consider your basic salary in support of your mortgage application, there are many others who are willing to look favourably at the patterns you can present in your earnings over time, in support of the amount you can borrow and your affordability considerations.
It’s the role of your mortgage broker or specialist mortgage advisor to guide you in the right direction and identify the right opportunities to match your personal circumstances.
How Mortgage360 can help a nurse get the right mortgage deal
At Mortgage360, we want to help you secure the most advantageous deal. We have access to specialist mortgage lenders who understand the challenges you face in terms of supplementing your basic salary with overtime and agency nursing work.
We secure mortgages for nurses – we’ll match you to a suitable lender and guide you through the mortgage process. We’ll help present you as a reliable borrower and support you through achieving the most flexible terms and competitive interest rates.
Contact us today to start the journey!
