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Helpful Information About Police Mortgages
What is a Police Mortgage?
Currently there are no dedicated mortgages for those serving in the UK Police Force or working in a Police staff role. The good news is, you have a broad range of mortgage options available to you, however, some lenders are more police friendly than others.
Those Mortgage Lenders who understand the specific challenges that can be experienced by Police in obtaining a mortgage, such as varied shift patterns and lower starting salaries, are the most likely to offer you a competitive deal.
What help is available to Police Officers?
Unfortunately, whilst the Key Worker Mortgage Scheme was previously helpful to Police officers and staff, it ended in 2019.
If you’re having a tough time getting onto the property ladder, however, there are other home ownership schemes aimed at First Time Buyers predominantly, that can be helpful to Police Officers and Police staff.
Help to Buy
This Scheme lets you borrow up to 20% (40% in London) towards your deposit from the government. You will have to find a 5% deposit yourself and the loan will be added to this to give you a total deposit of 25% (45% in London). This means that you will only need a 75% Loan to Value mortgage, which is more accessible and more affordable.
Right to Buy/Right to Acquire
The Right to Buy scheme allows those living in housing association or local authority properties to purchase their rented home at below market value prices. Unfortunately availability varies both depending on where in the UK you live and based on your individual housing provider. It can be a very affordable way for those on a low income to buy a home, so it’s certainly worth checking whether it’s available to you, if you’re a local authority or housing association tenant.
With this home ownership scheme, you are able to purchase a percentage of a property, usually between 25-75%, through a housing association. As the deposit amount and repayments on your mortgage will be considerably lower as a consequence of only needing to borrow a percentage of the cost of your home, it’s a much easier route to home ownership for those struggling to get onto the property ladder. You should also consider, however, that you will have to pay rent on the portion of the property that you don’t own.
Starter Home scheme
The Starter Home Scheme is quite a new path into home ownership which is only aimed at young people between the ages of twenty three and forty. If you meet this requirement then it allows you to purchase a new build home worth up to £250,000 (£450,00 in London) at a discount of at least 20%. In order to qualify, you cannot rent or resell your home at the original market value for five years after the purchase. This scheme has been scrapped. The 2015 initiative to build 200,000 homes and sell them at a 20% discount was formally scrapped this year without a single home being built.
How much can I borrow as a Police Officer/Police Staff?
Mortgage loans are based upon a variety of factors, including affordability and credit score, but job title is rarely considered, other than for its stability.
Whilst how much each lender is willing to offer will vary, a typical mortgage applicant can expect to borrow around four times their annual salary. Given the innate respect and stability Police employment entails, some lenders may be willing to offer you more than this, with a maximum of around five times your annual income.
As a guide, the starting salary of a UK Police Officer is approximately £20,000, which would give you the following loan amounts, at each multiple of your salary:
- At a multiple of four times the salary = borrowing of £80,000
- At a multiple of four and a half times the slalary = borrowing of 90,000
- At a multiple of five times the salary = borrowing of £100,000
As you advance in your career, moving up a structured pay scale and a reduction in risk as a result of career stability should give you access to higher mortgage loans.
Will a mortgage lender take overtime or second income into account?
There are mortgage lenders who are willing to consider additional sources of income on top of your salary, when calculating your loan. Any additional income is more likely to be considered, the more stable it appears.
If you plan to submit your overtime payments alongside your standard salary, then being able to show that you’ve had access to it for six months and particularly that you’ll continue to have access to this income in the future, will be beneficial.
Other sources of income may also be considered if they are consistent, such as benefits, maintenance payments and second jobs. If additional earnings come from Self-Employment, there may be a minimum length of employment applicable.
How can Choice Finance help Police/Police Staff to obtain a mortgage?
At Choice Finance, our Mortgage Brokers specialise in providing mortgage advice to key workers, such as Police Officers and similar law enforcement professionals. We have access to a wide range of police friendly lenders and can ensure that you find the most suitable mortgage deal for you.
We provide full administrative support throughout the application process as we understand how busy your chosen career can be. We will do our utmost to support you around your shift patterns at times convenient to you and provide a smooth route into your new home.
A mortgage is a loan secured against your home.
Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.
A mortgage is a loan secured against your home. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.