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Police Mortgages – exploring your options
Financial products like mortgages aren’t usually hard to find if you work for the police. In fact some mortgage providers offer special deals for Police Officers and support staff. There are a few things to be aware of when looking for a mortgage, though, and it pays to compare lots of products.
How can I find a Police Mortgage?
Although there were once some financial products for UK ‘key workers,’ there aren’t any specific mortgage products for the police force today. However, some lenders may offer special police discounts and offers for anyone working for the police, plus retirees.
Your benefits information is a good place to start, or contact a broker like IMS and we will compare all the options on your behalf.
How much can I borrow?
Many lenders will offer four to five times your salary as a loan, providing you have a good credit history. If you choose a joint mortgage you may be able to borrow a larger total sum, as the lenders combine the applicants’ incomes as the basis for the loan.
One potential challenge comes if you do a lot of overtime. Some lenders won’t include all your overtime earnings in the affordability assessment – and often limit overtime to around 50-60% of the total earned.
The idea is that overtime is not a given, so it’s not seen as part of your true income. Meanwhile other mortgage lenders may be more generous – which is relevant if overtime makes up a good portion of your earnings.
How much deposit will I need?
You will need a minimum 5% deposit to buy a home, but a high loan-to-value mortgage like this means high interest rates and costly monthly repayments. Saving up a bigger deposit – 15% or more – will get you lower mortgage rates and a wider choice of lenders.
Put your details into a mortgage calculator for details of how much you might be able to borrow and the size of the repayments on your mortgage. It’s important to check that these are affordable, as your home may be repossessed if you can’t keep up the repayments.
How can Police Officers find a suitable mortgage?
Police mortgage deals might include discounted fees, reduced deposits or exclusive rates. But you will need to compare special offers with the wider market to see how good a deal they are.
You should also check you meet the lender’s approval criteria. You might need a certain level of deposit, to meet a minimum credit score or income requirement. Your age and the type of property you’re planning to buy can also affect whether you’ll get approval.
But if you don’t match one lender’s criteria – you have bad credit, for example – it’s likely you will still find a mortgage with a more specialist company. In this situation it is very helpful to seek financial advice.
Helpful Government Schemes
The government operates various schemes in England and Wales to help people buy a home. These are open to anyone, including police officers, so are worth exploring. They include:
Help to Buy Equity Loan – buy a property with just 5% deposit plus a government loan for a further 20% towards a deposit. You take out a mortgage for the remaining 75% and the government loan is interest-free for five years. This deal is open to First Time Buyers on new build properties.
Help to Buy Shared Ownership – take a mortgage for 25% to 75% of a home and pay rent on the rest, increasing your ownership share over time. The scheme is available on many new build properties and Housing Association homes.
Right to Buy -if you live in a council or Housing Association home, you may be able to buy it at a discount via the Right to Buy scheme. Discounts can reach £84,200 in the UK as a whole or £122,300 in London.
NewBuy – NewBuy is another scheme led by the government where 95% mortgages are available. It is only available on certain new build properties, so it requires a little research in your area.
Neither IMS (Watford) Ltd t/a Independent Mortgage Solutions or PRIMIS Mortgage Network is responsible for the accuracy of the information contained within the linked site
Can a Mortgage Broker help with Police Mortgages?
The team of Mortgage Advisors at IMS have helped many police workers find a suitable and affordable mortgage deal. We will spend time exploring your personal information and property goals to work out the best approach for you. We’ll compare mortgage options across many lenders to recommend the most valuable products.
Once you have chosen an appropriate deal, we’ll help you complete the mortgage application and support you at every step.
IMS (Watford) Ltd is an appointed representative of mortgage company PRIMIS Mortgage Network, a trading style of Personal Touch Financial Services Ltd which is authorised and regulated by the Financial Conduct Authority. Contact us today for expert help to achieve your property goals.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE