Mortgage Schemes For Key Workers

While salaries might not always reflect the skill, dedication, and value that key workers bring to our society, fortunately, when it comes to home ownership, mortgage lenders, the government, and local authorities can help staff buy their own homes.

They recognise that income might not always cover the cost of an expensive mortgage or that stringent eligibility barriers might be too rigid for some key workers’ irregular working practices or career progression timelines. Here, we look at what’s involved in greater detail.

Are there specific mortgages for key workers?

This depends on your job role and which lenders are offering what at the time you’re applying. While there are some worthwhile schemes out there to take advantage of, which we detail below, some lenders will be willing to offer special dispensation to key workers applying for regular mortgages too, which could take the form of discounted rates, flexible eligibility criteria and extended borrowing caps.

Specific mortgage products have existed in the past just for key workers, but in a fluctuating and unpredictable financial climate, it’s not always possible to tell which deals have expired.

This is why it’s always a good idea to get the support and expertise of a specialist mortgage broker. They will have insights into the market and lenders sympathetic to key worker applicants and may have current tailored products for them.

Schemes they can apply for

There are a number of initiatives out there that might be well suited to your circumstances.

Here, we will outline some standard ones, but it’s also worth asking your broker to check whether your region offers any bespoke schemes provided by your local authority, private developers, or social landlords.

First Homes

This scheme replaced the Key Worker Programme, which ended in 2019. It is aimed at first-time buyers and key workers, helping them onto the property ladder by giving a minimum 30% discount on the normal market value of new-build homes.

The government said this is part of a ‘wider pledge’ to build more affordable homes and bring homeownership within reach to more people.

Read more about the First Homes Scheme.

Shared Ownership

It’s not exclusive to key workers, but being one is one of the criteria for eligibility for this government-approved scheme, which is run by housing associations.

Essentially, this works if you can’t afford to pay a significant deposit or mortgage on a whole property. It allows you to part own and part rent a property, with a view to ‘staircasing’ – gradually paying more on your mortgage so you own it outright.

Read more about Shared Ownership mortgages.

Right to Buy

If you’re already living on a council-owned property, this scheme allows key workers to buy it at a reduced price. You will still have to qualify to take this up.

Read more about Right to Buy mortgages.

Who qualifies for one?

Which job roles are entitled to different schemes and mortgage deals is not clear-cut, as there will be different criteria for each lender and each system.

However, key workers are seen as being people who keep the important infrastructure of our society running, including:

• NHS workers
• State teachers and educators
• Police officers
• Armed forces personnel
• Prison staff
• Fire crews
• Probation services
• Environmental teams
• Supermarket workers
• Care staff

Why use Online Mortgage Advisor if you’re a key worker?

At Online Mortgage Advisor, we have access to the very best mortgage brokers who will have insider knowledge on the latest offerings from lenders and, crucially, which of those you might qualify for, especially if your role as a key worker is not definitive.

As well as the schemes out there, they will also be able to advise – and search for – regular mortgages that might be a fit for you, too. For example, high loan-to-value products like a 95% or 100% mortgage or those open to low-income or guarantor mortgages.

If you get in touch, we can arrange for a broker with experience arranging mortgages for key workers to contact you immediately.

Can you get a mortgage if you’re a social worker?

Yes, it’s possible. However, due to the nature of social work, individual employment contracts and incomes can be vastly different. It’s not unusual these days to see social workers’ contracts fall into the following categories:

Permanent staff

Typically, anyone on a full-time permanent contract should have no problem finding finance as long as the salary is paid as any other normal job. Some lenders will not approve the mortgage if the applicant has been in the position for less than 12 months.

However, some lenders may accept new job mortgages (even if they are in a probationary period), and one or two lenders that consider applicants yet to start their new job – so long as they have a written signed contract that is due to start within 3 months of the application.

Short-term contracts

Social workers on short-term posts (anything less than 3 years) may find getting a mortgage approved difficult. Typically, most short-term contracts are for 3, 6, or 12 months, and as such, lenders can deem the income unsustainable and not adequate to maintain ongoing mortgage payments.

Thankfully, some lenders consider these arrangements under certain conditions:

• The contract must have 6 months remaining, with a minimum 10% deposit and  a clean credit history
• OR it must have a minimum of 12 months left on a new contract, a minimum 5% deposit and a clean credit history
• OR it must be in a 12-month contract, having been previously renewed at least once. There must be a minimum 5% deposit and, ideally, a clean credit history (20% deposit with adverse).

Ideally, short-term contract workers need to have a relatively clean recent credit history (avoid any late/missed payments in the last 2 years), but the longer the time in position and the more deposit you have, the better your chances of approval with adverse credit.

Agency

Currently, there is great demand for agency work and thus considerably increased pay, which can be an attractive prospect for social workers who want to earn more money and don’t mind the lack of security a temporary position brings.

However, this impacts mortgage applications, as lenders like a solid, stable salary and a regular, sustainable income on which to base their lending decisions. It makes sense that if the applicant in a temporary role could find themselves out of work at any point, the probability of them missing mortgage payments is greater.

Thankfully, there are some specialist agency-friendly mortgage lenders out there, but they do have certain criteria you’ll need to meet to gain approval:

• Must have been in the current position with the same agency for a minimum of 12 months
• Ideally, have a relatively clean recent credit history (avoid any late/missed payments in the last 2 years)
• Must have a minimum of 5% deposit if clean credit or 20% if adverse credit
• Must be borrowing within 5x income if clean credit or 4x income if adverse credit

Sole trader & limited companies

There are occasions when social workers can trade as self-employed. In these instances, borrowers are treated as any other self-employed applicant under standard criteria. This means most lenders will require a trading history of 3 years and lend based on the company’s declared net profit (if sole trader) or salary + dividends (if ltd).

There are some lenders that are more flexible than this, however, and in many ways, being registered self-employed makes finding a lender easier as lenders consider the trading history of the business more than the current contract or employment status.

Speak to a specialist key worker mortgage broker

If you’re a key worker looking towards home ownership, knowing where to begin your search for the right deal, the most fitting scheme and the best lender for your circumstance can be daunting. This is where an honest, reliable and impartial advisor to hold your hand is ideal to partner with. They can save you time and money and ease the burden of stress throughout the process.

The experts we work with are fully trained and vetted for five-star customer service ratings. We can match you with the right professional for your circumstances straight away. All you have to do is give us a free initial call on 0330 818 7026 or make an online enquiry.