Key Worker Mortgage Scheme for Nurses
The Definitive guide to the Key Worker Mortgage Scheme for Nurses.
What Key Worker Mortgage Scheme For Nurses Are Available?
Government Help To Buy Scheme
The government help to buy scheme is the primary Key worker mortgage scheme for Nurses currently. It offers a 20 percent equity loan (40 percent in London) on eligible new build properties. This is great as you can put down a 5% deposit with the 20% equity loan and get a 75% mortgage. This therefore means you usually get a better rate of interest than on the second hand market. However New Build properties tend to be more expensive than comparable second hand homes.
Shared Ownership scheme
The Shared ownership scheme has been around a long time. This scheme essentially allows you to part rent and part buy your home. This therefore means that you need a smaller deposit as you only need 5% of your share.
For example if you bought a £300,000 home on the second hand market you would need £15,000 – £30,000 deposit. However on the shared ownership scheme you could buy a 25% share of the £300,000 and rent the rest. This would mean you only need a £3,750 deposit potentially.
Government First Homes scheme
Whilst the Government First Homes scheme hasn’t been released yet it will be the perfect Key worker mortgage scheme for Nurses when it is. It will allow you to purchase an eligible new build home with a minimum 30% discount. This means you could buy a £300,000 home for £210,000. Making your deposit and income needs much lower. Unfortunately we don’t know a great deal more about the scheme yet.
Right To Buy Scheme
The Right to buy scheme could be considered a Key worker mortgage scheme for Nurses. It is open to Council tenants to allow them to buy their home at a discounted rate. This therefore means you can get your home much cheaper and with little or no deposit. If you think you may be eligible speak to your Local Authority to find out more.
What Is The Key Worker Scheme?
The Key Worker Mortgage Scheme for Nurses is most likely considered the First Homes scheme. Unfortunately as we mentioned earlier it’s not been released yet. However as soon as we know more we’ll make a whole post about it as it’s likely to be the perfect Key Worker Mortgage Scheme for Nurses.
Do NHS Staff Get Mortgage Discounts?
Not from lenders unfortunately. However there are products that are more geared towards NHS staff that may offer a better rate or true cost than a standard mortgage product. You can however get a discount on your mortgage fees. At Albion Forest Mortgages we specialise in Key Worker mortgages and as a small token of our appreciation for everything you do we waive our broker fees on your mortgages.
How Do I Get A Key Worker Mortgage?
Simple! Get in touch with a specialist mortgage advisor, or speak to your Bank. Your Bank might have specialist Key Worker mortgage products. As we specialise in Key Workers we should be able to get you on the right track. You may find however that a Key Worker mortgage is not the best option for you, and a standard mortgage offers better rates. That’s why speaking to a specialist mortgage advisor rather than your bank would prove beneficial.
What Is The 30% Discount For Key Workers?
This is the Government First Homes Scheme. We detail this a lot more below but the long and short is it’s not out yet. It will however be a minimum 30% discount on the purchase of an eligible New Build Property.
Can You Use The Key Worker Mortgage Scheme For Nurses With Bad Credit?
Absolutely. Bad Credit will make it more difficult to get a mortgage, but lots of lenders understand that things happen sometimes. With Bad credit it really depends on how long ago it was, what it was for, and how much it was for. If you’re considering a mortgage and know you have bad credit we suggest that you first check your credit file. For this we recommend Checkmyfile as they show you the three big credit referencing agencies. Once you have seen your credit report speak to your Bank or a specialist mortgage advisor to discuss your options.
What we know
The government initiative is a minimum of 30% discount on an eligible New Build property. With that said, some areas will have a discount of 40% or 50% depending on what level of discount will make a property affordable for First time buyers and Key Worker.
Maximum purchase price
The Maximum purchase price will be £250,000 in England, and £420,000 in London. This is the price of the property after the discount has been applied.
There will be an income cap similar to the Shared Ownership Scheme of a total household income of £80,000 (£90,000 in London) However local authorities may set lower income caps at the start of a sale to make the program accessible to those on lower incomes first.
The Mortgage will need to be at least 50% of the purchase price. This is designed so that the people that need these homes get them. Rather than those with a deposit large enough to buy a standard property.
Selling the home
When you sell the home, your property will have a covenant, so that you will sell at the agreed discount percentage. This means that the discount will be passed on to future buyers.
Letting out the property
To allow occasions when you may need to let out your property under the First Homes scheme the scheme will allow you to rent out your property for up to two years with the approval of the Local Authority.
When will it start
We don’t know. However the consultation period set by the government has ended and they have said they should have more details to follow. We will set up a special page on the First Homes scheme to detail more about the scheme and keep it updated.
Can you use the key worker mortgage scheme for nurses if you are newly qualified?
Yes. All the schemes listed here should be available for the newly qualified. It’s worth speaking with your Bank or a Specialist Mortgage Advisor to discuss your options if you are newly qualified as you may be restricted on lender choice. You can even get mortgages as a Student!
Are there any Key Worker mortgage providers?
Yes. Although not specifically for Nurses. However there are Key worker mortgage products that may be a good fit for you. Speak to your Bank to see if they have any, or a Specialist Mortgage Broker. Sometimes a specialist Key Worker mortgage scheme for Nurses, or mortgage product for Nurses isn’t the best option. A standard mortgage product may be a better fit for you.