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Police Mortgages and how to get a good deal
Some mortgage providers offer special deals for members of the police force. Generally, it’s easy to find a mortgage if you are in the police force – but it’s important to compare all the options and find a mortgage that suits you best.
What is a Police Mortgage?
Strictly speaking there’s no such thing as a police mortgage, but some Lenders offer discounts and offers to attract customers from the police sector. You’ll be eligible if you can provide proof of your job – and some lenders extend the offers to include retirees.
Check your benefits information for lenders offering mortgage deals to the police force, or contact a broker like Mortgage Co – we’ll explore all your options and advise you on suitable products.
How much could I borrow?
As a general rule people can borrow around four to five times their salary on a mortgage. You could potentially borrow more with a joint mortgage, as the loan is based on the total of your two incomes. You can get an idea of how much you could borrow and the likely repayments on your mortgage using a mortgage calculator.
Overtime payments can sometimes make borrowing more complex. Because overtime is optional and not seen as guaranteed income, many lenders don’t include all overtime earnings in their loan calculations. They might limit the amount of overtime included to 50-60%. Meanwhile, other mortgage lenders may be more accommodating, so if you do a lot of overtime it’s good to explore this area in a little depth.
What size deposit will I need to contribute?
You can get a mortgage with as little as a 5% deposit, but it will require a good credit rating. With a high loan-to-value mortgage – which means a low deposit – lenders charge higher interest rates, so monthly repayments are more expensive. By saving up a bigger deposit of 15% or more, you will get lower rates and cheaper repayments.
Your repayments need to be affordable, because if you fall behind with your mortgage your home may be repossessed.
How can Police Officers find a good mortgage deal?
Mortgage offers might include zero fees, discounted rates or lower deposit requirements. It’s a good idea to compare any special offers with other available mortgage products, so that you can check that they are valuable.
Each lender will have their own specific criteria too, which could include a minimum deposit, a certain credit score, age and property type. If you don’t meet the requirements for one lender, you may be accepted by another. In most situations, even if you have bad credit or a low deposit, there will be a lender who will take you on. You might just need a little expert mortgage advice.
Government schemes to help you buy a home
The government operates several schemes in England and Wales that are open to anyone, including police workers:
Help to Buy Equity Loan – available for First Time Buyers on new build properties. Buy a property with just 5% deposit and the government will loan you a further 20% to put down as a deposit. You then need a mortgage for the remaining 75%. The government loan is interest-free for five years.
Help to Buy Shared Ownership – With Shared Ownership you buy 25% to 75% of a home and pay rent on the rest of the share. You can buy a greater share in the home 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 also offers 95% mortgages on new build homes – but only from certain developers. It may require a little research in your area.
How can a Mortgage Broker help?
Mortgage Advisors like the Mortgage Company have helped many police workers explore their mortgage options. We’ll get to know you and your unique situation, capturing your personal information so that we can recommend mortgage products to achieve your property goals.
Our mortgage advisers will help you complete a mortgage application. We’ll even keep in touch with lenders, solicitors and other players involved in your property purchase to keep things moving along.
The Mortgage Company is authorised and regulated by the Financial Conduct Authority. We’ll take the stress out of finding and comparing your mortgage options and buying a home.