Mortgages for Firefighters

Getting a mortgage as a firefighter should not be difficult, but some lenders might challenge you when it comes to calculating overtime or income from a second job.

In this article, we’ll explain everything you need to know about firefighter mortgages, income calculations, and why speaking to a whole-of-market broker is the best route to the right deal for you and your family.

Are there specific mortgages for firefighters?

Yes. Some lenders provide mortgages specifically tailored to firefighters and lenders who offer exclusive deals for all key workers.

But don’t fall into the trap of thinking they necessarily offer the best deals. If you or your partner are a firefighter, access to these products should be viewed as a way of widening your potential pool of lenders.

You should still check the whole market to make sure you get the very best deal available according to your personal and family situation. The shrewdest way to do this is to enlist the help of an experienced mortgage broker.

Options for people who work in fire and rescue

Aside from special deals with some lenders, government schemes are also available to help key workers, first-time buyers, and others who are struggling to get a mortgage.

These include:

• Shared Ownership – Allows you to buy part of the property and rent the rest from a housing association.  Eligibility varies, but in most cases, it is open to firefighters.
• First Homes – New homes sold at a discount of between 30% – 50% to first-time buyers and key workers in England.
• Right to Buy – Exclusive to existing council or housing association tenants, you can purchase your home at a discounted price.

Eligibility factors

While some eligibility factors are unique to your position as an emergency services worker, you will also need to meet the lender standard eligibility criteria such as:

• Affordability (If you’re a part-time firefighter, you may find it difficult to prove sufficient income to borrow the needed amount. Read our guide to affordability to find out how this works and what steps you can take to still secure the mortgage you need)
• Deposit amount
• Loan to value
• Credit files
• Type of property
• Length of employment (If you’ve been with the fire service for over three years, this shouldn’t pose a problem with the majority of lenders)
• Your age

Lenders have varying criteria, so, for example, having bad credit or being close to retirement doesn’t necessarily mean you can’t get a mortgage but will limit your borrowing options.

How a broker can help firefighters get a better deal

One of the challenges of getting a mortgage as a firefighter is that your working hours don’t often suit those of lenders or brokers. We work with brokers who specialise in arranging mortgages for firefighters and understand the nature of the beast.

They’ll know about exclusive deals available to you and how they compare to products on the wider market.

Not only will they find you the best deal according to your situation, but they will also do a lot of the legwork on your behalf to prevent your mortgage application from becoming a burden.

To speak to a broker and find out what deals are available to you, get in touch. We’ll introduce you to an advisor we work with who has experience helping people in your profession.

How much can firefighters borrow?

Most lenders calculate maximum borrowing capacity using income multiples. Typically, this is 4.5 times the combined income of all borrowers.

However, for firefighters, some providers will lend five times or (in rare cases) six times their salary.

The average firefighter salary is around £32,000 pa.

This equates to a borrowing capacity of:

• £32k x 4.5 = £144,000
• £32k x 5    = £160,000
• £32k x 5.5 = £176,000

Remember, though, that if you have a working partner or you receive benefits such as Universal Credit, this can increase the maximum amount you can borrow. Mortgages for six times income are usually reserved for those on above-average pay.

To see how this may work out for you, try our affordability calculator below:

Second jobs and overtime

It’s not uncommon for firefighters to have variable pay due to overtime or a second job. Each lender has its own method of calculating affordability based on these factors.

Some take an average of any overtime over the past three months, while others employ a more flexible approach and are willing to discuss the true figure with you. There are even those who will not consider any income from a second job, and these should be avoided in this situation.

Usually, if you have a second job, you’ll need to provide payslips for the past three months if you’re on PAYE or at least two years’ accounts if you are self-employed.

If you don’t yet have two years of accounts, don’t worry. Once again, specialist lenders who will consider a self-employed mortgage with one year’s accounts or less in some circumstances are available.

Typical interest rates

Interest rates can change at any time and the rate you’re offered largely depends on your circumstances.

The table below indicates the best rates currently available.

The rates quoted above were correct at the time of writing and are subject to change at any time at the lender’s discretion. Speaking to a mortgage broker is the best way to keep track of the rates available at any given time.

Get matched with an advisor who specialises in firefighter mortgages

It’s easy for firefighters to have their heads turned by special mortgage deals for key workers. But it’s important to remember that any headline mortgage deal is not specific to your circumstances.

For example, if you have a large deposit, you may find your best deal is with a high street lender. Or, if your partner is a professional, you may be able to combine the benefits offered to key workers with those that come with mortgages for professionals.

Ultimately, the only way to know you’re on the best possible deal is to scour the UK mortgage market for the one that matches your circumstances. We work with brokers who have full access to the market and understand the complexities and nuances of working in fire and rescue.

Our unique broker-matching service will find the advisor most suited to your needs. To get matched with your ideal broker, call 0330 818 7026 or enquire online.