Police mortgages – how you can benefit
As a member of our country’s police force, you work hard, often at unsociable hours, enduring early starts, night shifts and stressful situations.
When it comes to running your home and family on top of your job, that can be time consuming and stressful too. So it can be easy to put things off that you think will take up a lot of your time – like finding out about buying a house and getting a mortgage.
Asking a Mortgage Broker to help you early on in your quest to get on the property ladder could really benefit you. That’s because they will do all the things that take up the most time for you.
What is a Police mortgage?
Whilst there is no specific product called a ‘Police Mortgage’ there are some lenders who are sympathetic to the unique situation of those working for the police, as such Police Mortgages are property loans offered by lenders that understand the pressures you face in your job every day, as well as the hours you work. They also understand how much you get paid according to your rank.
Depending on the lender, this means you may be eligible for lower deposits and interest rates. They may offer higher income multiples that enable you to borrow more, depending on your rank and because your job in the Police Force offers you greater job security.
A lender may also take other income you receive from a part time job or business into consideration.
What help is available?
Mortgage Guarantee Scheme, from April 2021, lenders are reintroducing their 95% Loan To Value (LTV) which means you could apply for a mortgage with just 5% of the property purchase price. If you’re a First Time Buyer or homeowner on your way up the property ladder, the home you want to buy costs less than £600,000 and you have a good credit score, you could qualify.
A good Mortgage Adviser will know which lenders are offering these mortgages.
Right to Buy
If you’re a council tenant, you can buy your council home at a discount.
Right to Acquire
If you live in a housing association home, you can apply to buy it if you’ve had a public sector landlord for three years.
Part of the Government’s Help to Buy scheme, you can buy a share in a property owned by a housing association.
Starter Home Scheme
If you’re a First Time Buyer aged between 23 and 40 years old, and your total household income is less than £80,000 (£90,000 in London), you can apply for a starter home.
How much can I borrow?
You can apply to borrow four and a half times your annual Police Force salary. The average salary of a Police Officer in England, Wales and Northern Ireland is £26,698.
That means you could borrow £120,000. However, depending on your rank and length of service in the Police Force, you may be able to borrow five or even six times your salary.
If you are applying for a joint mortgage, you and your partner’s salary will be added together.
It’s really important to make sure you do not take on a mortgage that you cannot afford.
All lenders are required to comply with responsible lending regulations.
This means they will carry out an affordability assessment to make sure mortgage applicants can afford their mortgage repayments now and in the future.
A lender will check your credit score to make sure you will be a low risk borrower. If you’ve had bad credit on your file in the past, this will be taken into account when working out how much to lend you and how much deposit you’ll need to put down.
This is so the lender can be sure that you’ll make the repayments on your mortgage.
Remember your home may be repossessed if you fail to keep up repayments on your mortgage.
Will a lender accept overtime or a second income?
A lender will take your regular income into consideration which can include overtime and shift. They will use your last three to six month average monthly salary as a baseline.
Some Police Force employees have a second job, run a business or own a buy to let property. The income from this will also be taken into account.
How can What Life & Mortgages Help?
Seeking help from an experienced Mortgage Adviser authorised and regulated by the Financial Conduct Authority, can make the whole process of buying a home so much easier.
At What Life & Mortgages, we specialise in helping you apply to the right mortgage lender so you can get the mortgage you need to buy the property they want.
First we’d conduct a fact find about you, the type of home you’re looking to buy and discuss the various mortgage options available. We will need to take some personal information, such as your income, to calculate how much you can borrow.
You’ll also need to supply ID, proof of address, bank statements and payslips, as well as itemised monthly outgoings to prove you’ll be able to afford the mortgage repayments?
We’ll search the market for the lenders that offer the most competitive mortgage deals to Police staff on the mortgage market. Then, once we’ve found the right lender, we’ll compile all the paperwork and complete the application, and submit it.
We’ll liaise with the lender on your behalf and keep you informed throughout the process.
This will save you time, money and frustration and means you can enjoy the fun part of searching for a new home.m
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
Many clients now find that releasing some of the wealth from their home can help with things such as home improvements, paying off existing mortgages, clearing debts, dream holidays, second homes, school fees and helping with their children’s house deposits.
Modern lifetime mortgages stand at the forefront of financial planning by providing access to tax free capital to spend as required, with no repayments required during your lifetime unless you choose to, and whilst you retain full home ownership.
We only deal with lenders approved by the Equity Release Council which includes names such as Aviva, Just Retirement, LV=, Legal & General, Hodge Lifetime, More 2 Life, Pure, One Family and Canada Life.
For an initial meeting/discussion either by telephone or face to face without obligation and without charge contact Matt Woodgate on 0783 446 7400 or 01904 208470, or email: firstname.lastname@example.org.