Mortgages For Key Workers

Key workers are those living in the UK who are considered to perform key jobs for society. These include teachers, nurses, firefighters, policemen and a whole host of other professions. In the UK, those considered key workers are eligible for a range of housing and mortgage schemes designed to support them in getting onto the property ladder. There are a few qualifying rules which include your household income not being more than £60,000 a year, being in one of the eligible professions and having no less than five years left to work before retirement.

Keyworker Mortgage Schemes

Some lenders offer specialist mortgage schemes for Key Workers. They often come with dedicated mortgage rates and include special features such as enhanced borrowing assessments to allow you to borrow more, lower deposits and incentives such as cashbacks on completion.

Shared Ownership

The government also offers a shared ownership scheme for those who can't afford to pay for a mortgage on 100 per cent of home. This scheme allows you to buy a share of a property - between 25 per cent and 75 per cent of the value of the property - and pay rent on the rest. If you can afford more after a few years, you can switch part of the rent to a mortgage and build up the share that you own. The scheme can be used on both new build homes and existing properties that are being resold by housing associations. You will need to apply for a mortgage to pay for your share. We can help you to look at all the options available and choose the one that's right for you. Those in the British Armed Forces are given priority for this scheme, but depending on where you want to buy, key workers are given priority in some local authority areas.

Shared Equity

Shared equity is another option for those who have lower incomes and can't afford to buy a whole property. The government's Help to Buy scheme, above, is the biggest shared equity provider but there are others. Some house builders offer similar schemes for those buying a new property. Under these schemes, you borrow money for the deposit in the form of an equity loan, which gives the provider of this loan a share in any change in value in the property between you buying it and repaying the loan - usually when the property is sold.

The remainder is funded by you taking a mortgage. There are fewer lenders offering mortgages on shared equity properties that are not part of the Help to Buy scheme, but you will still have options. It's best to speak to a mortgage broker who will be able to guide you through the application process and help you work out the best choice for you. Scotland offers two separate shared equity schemes – New Supply Shared Equity and Open Market Shared Equity. Wales is part of the Help to Buy scheme, but allows you to take an equity loan of between 30 per cent and 50 per cent of the purchase price. It’s designed for people who would otherwise need social housing.