Get in touch for a free, no-obligation chat about how we might be able to help you.
Let us Find You a Home
Get in touch today for Expert Mortgage Advice from your Local Mortgage Adviser
All You Need To Know About Police Mortgages
What is a Police Mortgage?
There are no actual mortgage products that are exclusively aimed at police officers or police staff but some specialist Mortgage Lenders are more accommodating to those in the police force.
Those lenders who are ‘police friendly’ are understanding when it comes to police specific issues that may ordinarily affect a mortgage application, for example, low starting salaries, changing shift patterns and fluctuating overtime payments.
What help is available to police officers?
Although the Key Worker Mortgage Scheme, that once offered additional help to police and other key workers, ended in 2019, there are other government led home ownership schemes that can help police officers and police staff, particularly First Time Buyers:
Help to Buy
If you’re a First Time Buyer, this scheme will provide a government loan of 20% of the house price (40% in London) towards your deposit for any new build home. You must offer a 5% deposit yourself. The larger deposit will lower your Loan to Value borrowing, giving you access to better rates and more chance of securing an offer.
Right to Buy / Right to Acquire
These schemes afford Local Authority and Housing Association tenants, respectively, a chance to purchase their rented property. There are large discounts available, however, there are significant regional variations and this scheme is no longer available outside of England.
The Shared Ownership Scheme allows you to buy between 10% and 75% of a property, with a housing association usually retaining ownership of the remainder. This offers an alternative mortgage option for those with smaller incomes or poor credit, as the borrowing can be very low. You can increase ownership over time in increments of 1% or more, but you must pay rent on the percentage that you don’t own.
Starter Home Scheme
This scheme is only available to those aged 23-40 and is intended to help young First Time Buyers get onto the property ladder. To be eligible, you must purchase a new build home worth up to £250,000 (£450,00 in London). You will be provided with a 20% discount on the purchase price. You do have to fulfil other criteria, for example, there are maximum income caps, and rules around selling the home on.
The Mortgage Guarantee Scheme
This is more a scheme for lenders than borrowers, but it means that all creditworthy applicants now have access to 95% mortgages with lenders who have signed up. It means that it’s possible to purchase any home with just 5% deposit, so long as it’s under £600,000, and the government protects the lender, reducing their risk to lend.
How much can I borrow as a police officer / police staff?
Mortgage Lenders base their loan offers on a number of factors, including income, job security and your credit score. The type of role you are employed in will not usually be an influencing factor in the amount that you can borrow.
That being said, those lenders who are more sympathetic to the needs of police officers may be willing to lend a higher multiple of your income, on the basis of your stable career choice. Typically, you could expect to borrow between three and five times your annual salary.
Will Mortgage Lenders take overtime or a second income into account?
There are lenders that will consider overtime payments, if they are regular. It’s more likely that these will be taken into account if you can provide evidence of six months or more of ongoing overtime availability.
You will also be able to use other regular forms of income, such as benefits, maintenance payments and second job earnings, so long as you can prove that they will continue indefinitely.
How can The Mortgage Brokerage help?
Here, at The Mortgage Brokerage, we’ve advised many clients who are serving in the police force to find a competitive mortgage deal. Having access to a wide variety of high street and independent lenders means that we can direct you towards those police friendly lenders, who are most likely to be able to help you.
We understand the plight of working shifts, so we’ll do our utmost to work around your schedule in order to be here when you need us. We’ll minimise stress by completing much of the administrative part of the application for you, allowing a smoother transition into your new home.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.