Police Mortgages – A Short Guide

What is a Police Mortgage? 

Whilst there are no specific Police mortgage products available, the same standard residential mortgages that are available to everyone are available to Police officers too. There are specialist lenders who tailor their mortgage deals to be more attractive to Police officers.

Specialist lenders are useful as they tend to understand more about your work pressures, shifts, needs of serving and they understand your pension too. You can find specialist lenders easily with the help of a Mortgage Adviser.

What help is available when it comes to mortgages?

If you are a Police officer, it is worth seeking a specialist lender to get benefits in terms of your job title. There is a range of schemes that are available to everyone that members of the Police force can also access.

Right to Buy

If you happen to rent from your local council then after living in that property for at least three years makes you eligible to buy your home. You will get a discounted purchase price which will vary depending upon how long you have rented the property for. You will also have to ensure that you pass affordability checks, and you haven’t missed many rental payments. 

Help to Buy

The Help to Buy scheme offers 20% additional deposit funds from the government if you can provide 5%. It is subject to new build properties and aimed more at First Time Buyers.

Shared Ownership

Sometimes you cannot quite afford to buy a property outright but know that you can afford to purchase some of it. You can opt to purchase between 25-75% of the property and pay rent of the remainder until you can afford to purchase the property entirely. 

Starter Home Scheme

New build homes under the scheme are on the market 20% below the average market asking price to make them more accessible to purchasers.

It is important to ensure you can afford the repayments on your mortgage otherwise your home may be repossessed if you fail to make them. 

How much can I borrow for my Police mortgage?

As mentioned, there are not ‘Police mortgages’ but rather specialist lenders tailoring their products towards Police officers. Typically, you can expect to borrow between four to five times your annual income so long as you have a good credit score too. Being a Police officer does not go unnoticed and many lenders will favour you due to the security in your job title.

It is important to have your credit in check before you approach a lender. This is so that you can secure lower interest rates on your mortgage. If you are an officer with bad credit, there are options available to you, but it would be advisable to seek financial advice to improve your credit or a specialist lender through the help of a Mortgage Adviser.

How much of a deposit will I need?

Police officers who have been in their position for a good amount of time can expect to secure a property with only a 5% deposit. This is subject to your credit history and the lender you choose.

It is worth saving up for your deposit and providing the most revenue you can towards it. Lenders favour bigger deposits, and it often leads to lower interest rates and repayments on your mortgage.

Will a mortgage lender take overtime or a second job into account?

There are specialist lenders who will accept both your PAYE salary as well as other forms of income such as bonuses or overtime. You need to ensure that you have at least three months’ worth of records of the additional income in order for a lender to take it into account as regular income.

It would be worth seeking the help of a mortgage adviser to locate the right lender for your needs if you have additional forms of income. There are lenders who will accept you onto a mortgage and potentially let you borrow more.

How can The Mortgage Advice Centre help me?

The Mortgage Advice Centre has a team of mortgage advisers who are experts when it comes to the ever-changing mortgage market. As a Police officer, you are going to want to make the most out of your job role and we can help seek out the specialist lenders who are tailoring mortgage options to members of the Police force.

We can access the mortgage market to find lenders that are not available on the high street as well as being there every step of the way with your mortgage application. Get in touch today for tailored and expert mortgage advice.

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