Police Mortgages – exploring the options
What are the options for police officers looking for a good mortgage deal? Are there special mortgages for people employed in the police force? We will show you what is available and help you decide what’s best.
What is a Police Mortgage?
Some lenders offer special police discounts and offer on their mortgage products. These typically apply to anyone working for the police and, sometimes, retirees too.
Take a look at your benefits package for details of these types of offers – or talk to a good broker for mortgage advice. We know which providers particularly welcome applications from police workers.
What help is available for Police Officers looking for a mortgage?
Depending on the offer, you might find no fees, preferential rates or lower deposit requirements with a police mortgage. It’s a good idea to compare these deals with the general marketplace to make sure you’re getting the most appropriate deal at the lowest cost.
Getting a mortgage is always a question of meeting the lender’s criteria. The lender will check that the monthly mortgage repayments will be affordable. You will need to provide payslips to show your income, and the lender will also check your credit score.
Bad credit might reduce your choice of lenders, but will not usually stop you getting a mortgage.
Help from Government schemes
There are various government support schemes designed to help First Time Buyers get on the property ladder. These include:
With the Help to Buy Equity Loan scheme you can buy a property with just 5% deposit, and the government or a housing developer loans you money to take this amount up to 20%. You then take out a mortgage for the rest of the value. The loan is interest-free for five years. These mortgages are only available on new build properties.
This scheme allows you to buy 10% to 75% of a home and pay rent on the remainder. You can increase the size of your share over time. Shared Ownership is available on many new build properties and Housing Association homes.
Right to Buy
If you live in a council property, 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.
First Homes is another scheme led by the government where 30% discounts are available on certain new build properties. Key workers are prioritised for these homes. As First Homes is a fairly new scheme, this will require a little research in your area.
How much will I be able to borrow?
The amount you can borrow will depend on your monthly income and outgoings. With a joint mortgage, your incomes are combined for the calculation, so you may be able to reach a higher mortgage amount.
If you work overtime as part of your police role, you may find it challenging to find a lender that includes overtime payments in your salary calculations. Some mortgage providers limit overtime to 50-60%. Others are more generous, so if you do a lot of overtime we can help you research the most appropriate mortgage lenders.
We’ll give you an idea of your total loan and how much the repayments on your mortgage will cost. It’s essential that these are comfortably affordable for you, as if you can’t keep up with the payments, your home may be repossessed.
How can a Mortgage Broker help?
We’re here to help you find an affordable deal, get an Agreement in Principle and, once you’ve found a property, apply for a mortgage. By getting to know you and your property goals, our mortgage advisers can compare all the options for you.
We have access to providers from right across the mortgage market, so it’s fast and simple for us to find a suitable deal. We help First Time Buyers, home movers and people looking for Buy to Let mortgages too.
London Mortgage Solutions Ltd is authorised and regulated by the Financial Conduct Authority. Get in touch today with our mortgage advisors today to see how we can help you achieve your property plans.