Getting a mortgage when you are a Key Worker

How does being a Key Worker affect applying for a mortgage? MARIANNE LOMBARDI of Agree Mortgages Solutions sheds light on what can be a very stressful process.

There are multiple mortgage lenders in the UK, and all have varying criteria in what is considered acceptable when it comes to personal circumstances.

This inconsistency can create a minefield when trying to understand who exactly will lend what to you and when they will lend it. In this article, we will consider how lenders treat Key Workers and their income, when applying for a mortgage.

Being a Key Worker is not, in itself, a barrier to getting a mortgage. However, considering unsociable hours, overtime and shift allowance as being part and parcel of the role, it can be confusing to understand what income will be considered acceptable, and how the affordability will work for you.

Lenders have varying approaches towards how they use income, which can lead to big differences in what one will lend in comparison to the next. These disparities can have a huge impact on your application, as to whether you can afford to buy the home you love or to you buy something cheaper (or even, in some cases, whether you can afford to buy at all).

Lenders attitudes towards unsociable hours, overtime and shift work, can vary massively from lender to lender. Some may only use a proportion of this income, due it not being confirmed as basic.

This can be frustrating as it is a regular and often permanent part of your pay. There are some lenders who will look to support you by having a flexible approach to this income by considering using 100% of this income.

We spoke recently to the business development team from Skipton, who said that they understand perfectly well that this income is part of the role, and will subsequently consider using it as basic income. This outlook will further support your affordability, meaning you can borrow more, and, therefore, buy the home you love.

Within the NHS, bank income is a regular and often sole source of income. Bank income is not a permanent job with set hours, so it can be confusing as to how and if lenders will use this at all. It is certainly the case that this situation is treated and used differently from lender to lender, which again will impact the amount you can borrow.

I spoke to Oluwunbami, who is a NHS nurse. Oluwunbami works two bank shifts a week and has done so for the last eleven years. She explained that the bank work is a permanent fixture of what she does, and the income she takes home.

We spoke to Halifax and The West Brom. Both of these lenders will consider using 100% of this income and will also consider using it when it is the sole source of income for the applicant, which means that you would be able to use the income you earn in order to get the right property for you.

Have you recently started your role or only have a start date? Lenders have different approaches to this too, so where one may have told you to come back in six months, there are others that treat this very differently.

Speaking to the West Brom, they advised us that whilst their criteria states that they require three months’ payslips and twelve months employment history, for “professionals”, they will use the income from day one. Doctors and nurses are considered “professionals”.

In addition, Halifax and Nationwide are happy to consider your income, using your contract, even if you haven’t yet started. If you are a newly qualified nurse or a newly qualified teacher, starting your career in the new academic year, your contract can be used, provided you have a start date.

With so many lenders and so much differing criteria, it may seem daunting to know exactly where to start. Everyone’s circumstances and income is unique to them, and it’s about finding the right fit for you; finding a lender who is willing to utilise your income and ensure what is offered is suitable to your personal circumstances.

You may have been put off in the past by being told you cannot achieve a mortgage for the house you love. The majority of people will speak to their own bank for a mortgage, with the understanding that they will be able to offer them the best solution. This is not always the case.

Speak to a broker, who has not only the expertise, but also access to the whole of the market. They will find you a lender who understands and supports your individual needs, thus putting you one step closer to your dream home.

Marianne Lombardi is a Director at Agree Mortgage Solutions. She can be contacted on 07969 496 845 or by email to marianne@ agreemortgages.com.