Nurse Mortgage

Can self-employed nurses apply for a mortgage?

Yes, they can. If you are a self-employed nurse, most lenders will simply apply their self-employed criteria.

Typically that means you need a minimum of one year’s self-employed accounts. Ideally, you would have two years, but, apart from that, standard criteria and requirements will apply.

Can I get a Buy to Let mortgage as a nurse?

Yes. If the lender has minimum income criteria for a Buy to Let mortgage, which they often do, you’ll just need to meet that as part of their standard assessment.

Once that happens, standard Buy to Let criteria applies, which is essentially around meeting the income coverage ratio. In simple terms, the rent needs to cover the mortgage amount by a suitable percentage.

What if I have bad credit? Can I still get a mortgage as a nurse?

Absolutely, but it does depend entirely on what’s registered. Whether it’s a default, a County Court Judgment (CCJ), a missed payment – or maybe something worse – what’s important is when it was registered, the amount, the frequency of occurrence and whether it’s settled or back up-to-date.

All of those things will have an impact on how much deposit is required and what rate is payable. Ultimately, there are fewer lenders for adverse credit. But the great thing is that lenders are improving their criteria all the time. Again, it’s all about giving us all the information so we can guide you towards the right lender.

The mainstream lenders will overlook some low level credit issues now, and you won’t necessarily see the same negative impact on rates as you might have previously.

Are there any specific incentives or discounts available for nurses when obtaining a mortgage?

Unfortunately, no, there aren’t any specific discounts or incentives for nurses specifically regarding the mortgage.

However, if you’re looking to purchase a new build property, many builders do offer additional incentives for key workers. They may boost your deposit, pay for extras or make schemes such as Own New available, which might give you a cheaper interest rate.

Does the process of applying for a mortgage as a nurse differ in any way?

It’s the standard process. Typically we need proof of ID, proof of address, three months’ payslips (unless the lender needs more), three months’ personal bank statements to go with those payslips, and proof of your deposit.

There might be some additional requirements depending on your circumstances, but your advisor will guide you through that.

What financial planning considerations should nurses keep in mind when applying for a mortgage?

This comes back to what I refer to as the ‘golden principles of borrowing’. The main thing is to only borrow what you need and pay it back as quickly as you can. Ultimately, that means you pay the least amount of interest, which generally we see as being better.

Having said that, there are always circumstances where doing the ‘wrong’ thing can actually be the right thing – there needs to be balance.

We normally recommend a shorter term so you pay less interest, but that makes the payments higher. We always consider your day-to-day budgeting requirements before recommending a shorter term.

The same goes for the deposit. Whilst a bigger deposit is always considered better, we don’t want to use up all your money – you may want to keep some funds aside for the moving costs, or to buy furnishings for your new home.

It can be better to keep cash up front to do that rather than entering into high interest, short term finance deals. There’s always a balance to be struck.

Can you explain how joint nurse mortgages work?

It’s the same as a standard joint mortgage – there’s no specific process just because you’re a nurse.

The main thing will be ensuring your income is assessed correctly to get the right advice. The same goes for the other joint applicant, whether they’re self-employed, in a partnership or any other kind of employment. There are no special circumstances to consider for nurses around joint mortgages.

What happens if a nurse’s employment circumstances change after obtaining a mortgage?

Once you’ve completed on your purchase, any changes to your circumstances are immaterial – although it’s always your responsibility to keep up repayments on your mortgage, even when your circumstances do change.

However, if there is a material change before your house purchase has completed, typically we need to declare that to the lender. Positive changes, like a pay rise, is usually no problem. If it’s a negative change, such as increased debt or a reduced deposit, this could impact the affordability calculation.

It doesn’t mean the decision would change from a yes to a no, but we’d advise you whether it’s likely to cause an issue and what the potential remedies could be.

What advice would you give to nurses who are considering applying for a mortgage? Any top tips?

Make sure that you use an advisor, especially a Mortgage Store advisor, and tell them everything that you can about your circumstances. We’re experts at what we do and we’ll guide you to the right lender.

The more we know, the more we can help you. The better the information provided, the more likely we’ll move forward successfully together.

What else do we need to know about nurse mortgages?

Do talk to an advisor. From our perspective, we only win when everyone wins. There’s no benefit to us in cutting corners, as that would always come out later on. It’s far more stressful to find things out further down the line, as there’s less time to do something about it.

Again, it’s all about getting lots of information from you up front – because if it can be done, we will find a way.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP WITH YOUR MORTGAGE REPAYMENTS.

THE FINANCIAL CONDUCT AUTHORITY DOES NOT REGULATE MOST BUY TO LET MORTGAGES.