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Mortgage lenders tend to welcome members of the police force as customers. In some cases they offer special mortgage deals for Police Officers and support staff. So it’s not hard to find a police mortgage – the challenge is finding the most valuable deal.
What is a Police Mortgage?
There are no specific mortgage products for the police force, but some lenders may offer special police discounts and offers. Anyone working for the police is normally eligible and, often, retirees too.
Check your benefits information for special offers, or contact a broker like Heritage – we’ll compare all the options on your behalf.
How much could I borrow?
If you have good credit, you could receive four to five times your salary as a loan. If you are hoping to borrow more, it may be worth considering a joint mortgage, where the lenders combine your incomes for the calculation.
Many police workers get a substantial amount of their income from overtime – but many lenders won’t include all your overtime earnings as part of their affordability assessment. It’s common to limit the amount to 50-60%. Other lenders can be more generous, so it’s worth researching mortgage providers’ criteria on this.
How much deposit will I need?
The minimum deposit for a mortgage is 5% – but you will need a very good credit score for these deals. Remember too that a high loan-to-value mortgage like this will have higher interest rates and more expensive monthly repayments. If you can save up a greater deposit – ideally 15% or more – you will get lower mortgage rates.
A mortgage calculator will give you an idea of the total you could borrow and how much the repayments on your mortgage might be. These need to be comfortably affordable, as if you can’t keep up with the payments, your home may be repossessed.
Is there help for Police Officers looking for a mortgage?
Special offers on mortgages for police workers might include zero fees, discounted rates or lower deposits. Do compare these special offers with the general marketplace though, to be certain you’re getting a good deal.
Once you have explored the mortgage options you will need to check that you meet the lender’s approval criteria. These can include your deposit amount, your credit score, your age and the type of property you’re planning to buy. If you fall short of any of the criteria for one lender, with bad credit, for example, you will still be able to get a mortgage with a more specialist company – just seek financial advice.
Government schemes to consider
The government operates several schemes in England and Wales to help people buy a home. These include:
Help to Buy Equity Loan – here you can buy a property with just 5% deposit, with the government loaning you money to put down 25% as a deposit. You then take out a mortgage for the remaining 75%. The government part of the loan is interest-free for five years. This deal is only available for First Time Buyers on new build properties.
Help to Buy Shared Ownership – take a mortgage for 25% to 75% of a home and pay rent on the rest of the share. You can increase your ownership share over time. The scheme is available on many new build properties and Housing Association homes.
Right to Buy – If you live in a council or Housing Association home, 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.
NewBuy – NewBuy is another scheme led by the government where 95% mortgages are available. It is only available on certain new build properties, so it requires a little research in your area.
How can a Mortgage Broker help?
Mortgage Advisors like Heritage are here to take the stress and hard work out of finding a mortgage deal. By spending some time with you, exploring your personal information and property goals, we can work out the best approach and compare all the options.
Then, once you have chosen an appropriate deal, our mortgage advisers will help you complete a mortgage application. We’ll also keep in touch with lenders, solicitors and anyone else involved in your property purchase to keep things moving along.
Heritage Mortgages is an appointed representative of mortgage company Heritage Mortgage & Protect Limited, which is authorised and regulated by the Financial Conduct Authority. Contact us today to see how we can help you achieve your property goals.