Mortgages for Nurses
As earnings can include overtime, unsociable hours and bank work, many nurses are on varying wages month to month and may consequently struggle to obtain a mortgage.
We specialise in securing mortgages for nurses. As specialists and experienced mortgage brokers, we have access to multiple lenders, including those from smaller financial institutions who are willing to be more flexible with their lending criteria. We’re always looking to find you the best possible terms for your individual situation, and we deal with all of the application processes on your behalf so that you don’t have to take time out of your busy working day to negotiate with mortgage lenders.
Frequently Asked Questions
One of the reasons that getting a mortgage as a nurse can be complicated is because there are so many different working arrangements, as well as the varying salary bands. For example, you may be on a fixed salary, but you have flexible shift patterns, and therefore any overtime you’ve worked on top of that will affect your overall income. This can make it difficult for a lender to determine your exact salary, and has caused problems in the past for nurses applying for a mortgage.
In fact, it’s true that many lenders, unless they specialise in mortgages for nurses, won’t understand the complexities involved. That’s why speaking to a mortgage broker who specialises in mortgages for nurses is vital. We understand the unique circumstances involved and can refer you to the right lenders, who also understand and can work with you.
When it comes to the amount nurses are allowed to borrow, Lenders will typically use income multiples, which vary between 4.5-5.5 x your annual income. This creates a good starting point for them to then decide on how much they will be willing to lend you.
Nurses are quite fortunate, as they are often considered as low-risk – jobs are often stable as healthcare professionals. This means that lenders will be more likely to stretch to the upper end of their lending limits.
For nurses whose sole employment is bank work through agencies there are lenders who will consider 100% of the agency income for the mortgage application, providing you can show a consistent track record of working and earning.
Traditionally, it was true that some lenders may only consider a basic salary or may be more cautious of those whose work includes irregular hours and frequent overtime.
However, more lenders will now look at the patterns of employment history and if they can see the overtime/extra shifts are a regular and recurring pattern, they’ll be willing to consider them as part of the application.
Lenders can be wary of certain medical professionals, such as nurses and locums for example, because there may be gaps in their employment. However, there are now many specialist lenders who will look at the patterns of employment history and consider the overall picture, which if it includes regular and steady work, even on short-term contracts, will be taken into consideration.
Mortgages for self-employed nursing and/or care staff are becoming increasingly common. As with all self-employed mortgages, you’ll need at least 1 year’s accounts. A lot of lenders require 2 or more years, but as we are specialist, we have lenders available if you have less than that.
The good news is though, this type of mortgage is increasingly common and, so long as you have your year end accounts and all your supporting bank statements, ID etc then you should be good to go.
There are a number of government schemes and initiatives that make getting a mortgage for a nurse more affordable and these include schemes like Help to Buy, and Shared Ownership schemes.
Both of these schemes will offer you good mortgage options with a smaller deposit, and all of the Help to Buy and Shared Ownership mortgage companies will consider applications from nurses.
There aren’t specific discounts on interest rates or fees, but potentially better options to borrow more.
First and foremost, any lender wants to see that you have a stable, regular income to show that you can meet your monthly mortgage repayments.
Mortgages are available for nurses who are first-time buyers and also those who are remortgaging or moving home. Even for those who are self-employed and who are on short-term contracts.
As unique and individual as you and your circumstances are, there is likely to be a mortgage lender out there who’s the perfect fit for you. The best way to find out what your options are, and what you’ll need to produce in order to secure the best possible deal, is to speak to an experienced mortgage broker.
Your offer is going to depend on your earnings. You’ll need at least 3 months payslips (or 1 year’s accounts), plus your bank statements and contract, alongside your past work history – especially if you’ve been on short/fixed term contracts or do bank work.
The lenders will look at all this evidence and calculate what you can afford to borrow as a mortgage. For a lender to take overtime and additional earnings into consideration along with your mortgage application, they will usually want to see at least 6 months of consistent earnings, and possibly your P60 as evidence that the income is sustainable.
Working as an agency nurse doesn’t mean you can’t get a mortgage, however, it may restrict the number of lenders that offer you a loan, but it actually mostly depends on your type of contract and the length of time you’ve been working as an agency nurse (provable work history).
If you’re a Pay as You Earn (PAYE) agency nurse, you’re likely employed in a similar fashion to temps and therefore do not have a permanent or fixed term contract in place. Most lenders in instances will want you to have a working history of at least 12 months before they will consider lending.
If you’re a Self-employed agency nurse, then the longer you’ve been working as a nurse the more reliable your income and earnings will look to lenders. Most lenders will ask to see your tax returns for at least 1 year, and some will prefer 3 years.