If you work for the NHS, getting a mortgage is possible and you may even qualify for lower rates than usual. This is because some mortgage lenders offer mortgage discounts to those in certain fields of work, such as the NHS.

As roles within the NHS vary, mortgage applications will also vary as a result. It’s also important to note that there isn’t a specific NHS mortgage product that lenders offer and not all lenders will offer discounts to NHS employees.

You can make an enquiry to get started and to check what mortgages you’re eligible for.

What type of mortgages can NHS staff apply for?

NHS workers can apply for the following mortgage types:

• Residential mortgages
• Buy to let mortgages
• Joint mortgages
• Mortgage schemes, such as Help to Buy and Shared Ownership

Each mortgage type has its own set of requirements. Nonetheless, NHS applicants are able to apply for the same mortgage types as applicants that are employed elsewhere.

What mortgage discounts do NHS workers receive?

Some lenders offer mortgage discounts to those employed by the NHS. This means that you may qualify for lower rates and discounted fees. You may even qualify with a lower deposit than what’s normally accepted.

Mortgage discounts for NHS workers aren’t always widely advertised. As a result, speaking with an advisor beforehand is recommended. Furthermore, if a lender does offer a discount it doesn’t mean to say that you’ll qualify for it.

Am I eligible for an NHS mortgage discount?

The majority of lenders that do offer mortgage discounts require applicants to be clinical workers. For instance, those working for the NHS in roles such as housekeeping and administration may not qualify for a discount. Nonetheless, this does depend on the lender you’ve applied with.

NHS clinical staff roles include those working in the following departments:

• GP surgeries
• Dental practices with NHS status
• Ambulance Trust
• Primary Care Trusts
• Mental Healthcare and Social Care trusts
• NHS Direct
• National Blood Transfusion Service
• Health Protection Agency
• Other trusts with NHS status

Will I qualify for an NHS mortgage?

To qualify for a mortgage as an NHS worker, you’ll need to meet the same criteria as other applicants. For instance, lenders will assess you on the following:

• Contracted hours
• Annual salary
• Credit score
• Length of employment contracts, if you’re a contractor
• Your role within the NHS

Although lenders don’t advertise NHS mortgages, some lenders do specialise in this field. Furthermore, certain lenders are better suited than others for NHS applicants. This is because each lender has its own scoring system for mortgage applications.

If you meet the criteria for a mortgage, then you can apply. That being said, it’s important to check you’ll qualify with the lender you hope to apply with. A mortgage advisor can do this on your behalf.

How much can I borrow if I work for the NHS?

Each mortgage applicant will undergo an affordability assessment, irrespective of your NHS pay band. For instance, lenders will check whether you’re able to repay the mortgage you’ve applied for by assessing your income and outgoings.

Lenders will typically lend between three and five times your annual income. As an example, if you earn £30k a year, you may be able to borrow between £90k-£150k for a mortgage.

Some lenders will include bonuses and overtime towards your income assessment, whereas others won’t. This is important to know if you’re hoping to borrow more than your annual salary allows. Furthermore, your credit score can also affect the amount you can borrow.

Can I get a mortgage if I’ve only started working for the NHS?

You may still qualify for a mortgage discount even if you’ve only just started working for the NHS. Most lenders will require an employment contract or proof of employment, such as payslips. Even if you’ve not yet started work but have a formal job offer, your lender may base their assessment on the terms of your employment.

If you find yourself in this situation, speak to a mortgage advisor to check what’s possible. Having your documents ready will also help, such as your letter of employment and start date.

Read more: How to get a mortgage with a new job

What is the NHS key worker mortgage scheme?

The key worker scheme was an earlier government initiative to help NHS clinical staff to get a mortgage. Unfortunately, this scheme no longer exists, but there are other alternatives to consider. You may still be approved with better interest rates as well as smaller deposits.

Alternative schemes to help NHS staff with a mortgage

As the key worker scheme is no longer available, there are other mortgage schemes that help first-time buyers and home movers.

Help to Buy

If you’re struggling to save a large deposit, the Help to Buy scheme could be suitable. Those qualifying for the scheme can get a mortgage with just a 5% deposit. The government will then add 20% to your deposit, giving you a 25% deposit overall.

Learn more about Help to Buy mortgages here.

Shared Ownership

The shared ownership scheme allows you to buy part of a property and pay rent on the remainder at a reduced rate. Shares range from 25% to 75% and eventually, you can buy more shares when you’re able to. As you’re only buying a share of the property, your deposit and mortgage payments can be much lower.

Read more about shared ownership here.

Right to Buy

If you currently rent your home from a local authority or housing association, you may be able to buy your home with the Right to Buy scheme. The key advantage is that the scheme allows tenants to buy their homes at a discount.

Learn more about Right to Buy mortgages here.

Can mortgage advisors help NHS workers?

If you’re still unsure of what to do next, our mortgage advisors can help. For instance, lenders that do offer discounts to NHS clinical staff may not openly advertise their deals. Furthermore, trying to get the best possible rates can be difficult, especially with so many lenders to choose from.

Mortgage advisors are able to handpick suitable lenders based on your circumstances. Each applicant always has a varied profile, ranging from credit issues to becoming newly employed with the NHS. You may be wondering whether a mortgage is possible and don’t want to risk being declined.

Our experts can go through your application in more detail to check which lenders are suitable. We’ll also provide you with help on getting the most from your mortgage, which is especially helpful if you’re wanting to borrow more than usual or have a low deposit.

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There are times when religious values will have a bearing on the type of mortgage you’ll need. For instance, Muslims may require an Islamic mortgage that complies with Sharia Law. But, how do Sharia mortgages work and what should you do before applying?

As with any mortgage, a tactful approach is best advised. You certainly don’t want to apply with lenders at random as you’ll need to ensure your lender offers Sharia-compliant mortgages. Furthermore, finding the best deal possible can reduce your mortgage costs.

What is an Islamic mortgage?

An Islamic mortgage refers to a mortgage that complies with Sharia law. As a result, they’re very much different to traditional mortgages. The main difference is that an Islamic mortgage doesn’t involve the repayment of interest. This is because charging interest is against Sharia law.

Islamic mortgages can also be referred to as halal mortgages or Sharia mortgages. It’s important to note that some Islamic scholars disagree on what constitutes a Sharia mortgage.

How does an Islamic mortgage work?

Islamic mortgages are similar to no-interest home purchase plans (HPP), in that they may contain an element of leasing. Nonetheless, if approved, you’ll have the finance to purchase a property. This works because the bank will buy the property on your behalf as the legal homeowner. You’ll then pay the mortgage back each month in a similar principle to rent, essentially buying the property from the bank.

Rather than paying interest, you’ll pay rent each month to your lender so it’s halal. Once your mortgage term comes to an end and you’ve made all of your payments, you’ll own your home outright. If there is a balance remaining at the end of your term, you’ll have to repay this to own your home outright.

Sharia mortgage types

There are currently three types of halal mortgages available:

• Ijara (lease)
• Musharaka (partnership)
• Murabaha (profit)

Ijara mortgages

With an Ijara mortgage, your lender will buy the property for you and then lease it to you for a fixed length of time. You’ll agree to a fixed monthly cost and once the fixed term expires, you’ll own the property outright.

Musharaka mortgages

Musharaka mortgages can be best explained as a partnership between you and your lender. This is because you’ll both own a separate share of the property. Each repayment you make will go towards repaying the outstanding capital and towards rent.

This mortgage type is very similar to a shared ownership mortgage. That being said, you’ll eventually own more shares of the property with each payment you make, until you buy your lender out.

Murabaha mortgages

This mortgage type is where your lender will buy the property for you and then sell it back to you at a higher price. The total value including the additional amount is repaid in instalments over your mortgage term.

You’ll still need a deposit to place down, with the remainder being paid over your mortgage term. There’s no element of rent here, as the property will be yours from the very start.

Will my mortgage comply with Sharia law?

If your lender offers Islamic mortgages, it will be clear in the options available to you. For instance, you should have at least one of the three types available, such as an Ijara, Musharaka or Murabaha mortgage.

Your lender should also be certified under Sharia compliance, typically by an authority in Sharia law. It’s important to know that lenders that offer Islamic mortgages should also be regulated by the Financial Conduct Authority (FCA). As a result, you’ll have the same protection as other FCA-regulated mortgages.

Are halal mortgages expensive?

Compared to regular mortgages, Islamic mortgage products can be more expensive. The main reason is that Sharia-compliant lenders tend to have higher costs as they’re often buying the property outright. As a result, the risk of lending also becomes higher.

If you require an Islamic mortgage, you’ll also need a higher deposit in comparison to a regular mortgage. For instance, it’s possible to get a regular mortgage with a 5% deposit, but with an Islamic mortgage, it’s likely you’ll require a 15% deposit at least. This is in addition to higher fees that your lender may also charge.

On a positive note, because you have a higher deposit, the amount you repay each month should be lower. This is because you’re borrowing less and you’re not paying interest on the loan.

What fees are involved?

In addition to repaying your lender, you’ll also need to pay fees for your mortgage.

Fees can include:

• Mortgage lender fees
• Legal fees (conveyancing)
• Survey fees
• Stamp duty (where applicable)
• Buildings insurance
• Mortgage broker fees

What are the pros and cons of Islamic mortgages?

With any mortgage type, there will be pros and cons. It’s important to understand the potential positives and negatives before making a commitment.

Pros

• Halal way of getting a mortgage for those who want to remain compliant with Sharia law
• Avoid paying interest on your mortgage
• Possibility of redeeming your mortgage early and selling your property at any time without paying an early redemption charge (ERC), subject to your mortgage terms
• If you pay rent in addition to your mortgage, it can be cheaper than if you were to rent a property instead of buying

Cons

• It’s likely your property will be leasehold rather than freehold, which can incur additional costs and less control
• The mortgage amount will remain the same, even if house prices decrease, but this is the same with conventional mortgages too
• Can be more expensive than traditional mortgages due to the additional fees that lenders often charge
• It’s likely you’ll need a higher deposit, as 5% deposits aren’t accepted
• Solicitors can charge higher fees to carry out the conveyancing for an Islamic mortgage, simply due to the complexities involved
• The number of lenders offering Islamic mortgages is limited in comparison to regular mortgages which means you’ll have fewer choice

Buy to let Islamic mortgages

Buy to let can be a profitable investment and the good news is that lenders offer Sharia-compliant buy to let mortgages. That being said, the number of lenders is limited.

Most lenders require a 25% deposit minimum and will have similar options to residential Islamic mortgages. You must ensure your rental income is high enough to repay your mortgage and be a profitable investment.

How can I apply for a Sharia mortgage?

You can approach a Sharia mortgage lender yourself, or you can speak to a mortgage advisor for further help. Mortgage advisors can assess your financial situation to inform you of what’s possible. We can then approach lenders on your behalf to calculate the best possible deal.

It’s recommended to gather the paperwork you’ll need for a mortgage also. For instance, you’ll need recent payslips or accounts if you’re self-employed, in addition to bank statements and photo ID. Mortgage advisors can also ensure your mortgage is from an authorised Sharia-compliant lender.

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Often referred to as a JBSP mortgage, a joint borrower sole proprietor mortgage can help first-time buyers to get on the property ladder. Homebuyers can get help in other ways, such as guarantors or gifted deposits, but a joint borrower sole proprietor mortgage is completely different.

This guide will explore JBSP mortgages and similar options that may also be suitable for getting help with a mortgage. You can also make an enquiry with our experts if you need further help.

What is a Joint Borrower Sole Proprietor (JBSP) mortgage?

A joint borrower sole proprietor mortgage allows parents or family members to help pay a mortgage. This is ideal for situations where parents can offer help, without co-owning a property.

JBSP mortgages also offer flexibility. For instance, parents can contribute as much as they want each month. Once homeowners are able to repay the mortgage on their own, parents and family members can reduce contributions.

You can also benefit from getting a larger mortgage than you otherwise would. If you’re on a low income or want to borrow more than you’re able, a JBSP mortgage can allow you to do so. This is because lenders will assess income across multiple applicants rather than just your own. As a result, you can get a larger mortgage and keep sole ownership of the property.

Without getting help from an additional borrower, you may struggle to get the mortgage amount you require. In other words, you can reap the benefits of a joint mortgage application without sharing the ownership of your home.

How does a JBSP mortgage work?

Up to four applicants can apply for a JBSP mortgage on a single property. Each mortgage lender varies in its criteria, but typically, four applicants are the maximum for any joint mortgage. You can also apply with just one additional applicant. Lenders will then assess the incomes of each applicant to calculate the amount they’ll lend.

While most lenders require helpers to be family members, other lenders don’t have restrictions on who can be a non-proprietor.

Criteria and key features

• The homeowner must live on the property
• Non-proprietors can’t reside on the property
• Only the homeowner has ownership rights
• Non-proprietors have no ownership rights
• Gifted deposits may be accepted
• Repayment mortgages only

Can I take sole responsibility for my mortgage?

Yes, a JBSP mortgage is designed so that when you’re able, you can take sole responsibility for repaying your mortgage. The main aim is to help first-time buyers to get a mortgage while reducing a lender’s risk. Many first-time buyers simply don’t earn enough to get a suitable mortgage.

Once your income increases or you feel financially able, you can remortgage your home. Doing so will remove your family members from the mortgage. Furthermore, their legal responsibility of helping to pay the mortgage will also end. That being said, family members can reduce the amount they pay towards the mortgage at any time, as long as the mortgage is still paid in full.

Is a joint mortgage different from a JBSP mortgage?

Yes, a joint mortgage is different from a JBSP mortgage. A joint mortgage allows multiple applicants to buy a home and repay the mortgage together. This is common for couples, friends and even property investors. A joint mortgage also means that the liability of repaying the mortgage is shared. Furthermore, each joint applicant will be a legal owner of the property.

A JBSP mortgage is different in this way as those helping, such as parents will have a legal responsibility of repaying the mortgage, but won’t have any ownership rights. This can also save parents from having to pay additional 3% stamp duty charges for second properties.

How is a JBSP mortgage different from a guarantor mortgage?

Guarantors agree to cover mortgage arrears in cases where the mortgage isn’t repaid. Lenders also only lend on the basis that the applicant has a guarantor. This may be because of a shortcoming with the applicant’s assessment such as a small deposit or credit issue.

Similar to a JBSP mortgage, guarantors also won’t have any legal ownership of the property. The difference is that those helping, such as parents are required to contribute towards the payments immediately, rather than waiting for a debt to occur.

Learn more: What is a guarantor mortgage?

What advantages do joint borrower sole proprietor mortgages have?

The main benefits of JBSP mortgages include:

• Easier for first-time buyers to get a mortgage
• Lowers risk for lenders
• Less chance of mortgage arrears
• Borrow more than you’d otherwise be able to
• Retain sole ownership while sharing liability
• No additional stamp duty for those helping

Trying to get your first mortgage can be difficult, especially with the increase in house prices. Saving a 5% deposit can sometimes be a struggle and even then, the rates on offer can be very high.

At the end of 2021, the average UK house price was a huge £276,091. So, a 5% deposit would be almost £14,000 based on this figure, which is quite an ask for most first-time buyers. With a JBSP mortgage, you’ll still need a deposit but you can receive help from family members. As you can borrow more with a joint application, you may be able to get a mortgage with a smaller deposit.

Are there any disadvantages?

There are risks involved with JBSP mortgages, as there are with any mortgage or loan. There’s also a risk for your family members helping you, as they’re legally liable to pay the mortgage, even if you don’t.

Situations can also change and if relationships turn sour, payments towards the mortgage are likely to stop. It’s also not easy for family members to simply remove themselves from their legal obligation. If you’re unable to repay the mortgage by yourself because you no longer receive help, you could face losing your home.

What if my circumstances change?

Circumstances rarely stay the same, so having a plan in place is always advised. For instance, if you first take out a mortgage on a JBSP basis, but then want to share the mortgage with a partner, you’ll need to switch mortgage types.

A joint mortgage would be ideal, but you’d also be sharing the ownership with your other half. If you’d want to retain sole ownership, you may want to keep your mortgage on a JBSP arrangement but have your partner help you with paying the mortgage.

Joint borrower sole proprietor mortgage lenders

The number of lenders offering JBSP mortgages is limited. This is because it’s still classed as a specialist product which isn’t as common as other mortgages for first-time buyers.

Some lenders are also strict in their assessment process. For instance, they’ll only accept applicants over a certain age and with a good credit score. Those helping will also be assessed on their age. As a result, elderly helpers may struggle to find a suitable lender.

The good news is that well-presented applications can secure favourable deals with suitable lenders. Showcasing your income and income from those helping can give lenders confidence that the mortgage will be repaid on time each month. Larger deposits can also reduce the risk surrounding your application.

What alternatives are there for first-time buyers?

As a first-time buyer, there are many ways for you to get help when buying your first home.

If you have family or friends willing to help you, you may benefit from the following mortgage types:

• Guarantor mortgage
• Gifted deposit mortgage
• Family mortgage

If you don’t have help, you can try the following government mortgage schemes:

• Help to Buy
• Shared ownership
• Mortgage guarantee scheme

It’s important to understand that each scheme or mortgage arrangement has its pros and cons. You can speak to our experts to learn about which mortgage arrangement will suit you the most.

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This guide will explain how you can apply for a mortgage on benefits. Whether your benefits are paid as a top-up to your salary, or you solely rely on benefits, we’ll discuss the options available to you.

The pandemic caused economic chaos which affected many jobs throughout the UK. As a result, the UK government introduced help in the form of grants and benefits to help those with affected salaries. This is why the number of homeowners claiming benefits is high when compared to previous years.

Many benefits have also been replaced with Universal Credit. Nonetheless, we’ll discuss each benefit in detail and whether it’s possible to get a mortgage. Our experts are also available to help you further if needed.

Can I get a mortgage on benefits?

The short answer is yes, getting a mortgage while claiming benefits is possible. It certainly won’t be easy as it can be a very complex mortgage application. For instance, there are many types of benefits that are available and each one will impact your mortgage in a different way.

Being employed in addition to receiving benefits will also make a difference to your application. Having assets and savings can also support your application.

Employed and claiming benefits

There are certainly more mortgage lenders to approach if you’re working in addition to claiming benefits. This can make mortgage approval easier, as you’ll have more options to choose from.

You’ll still need to meet your lender’s criteria, so having a good credit score and income will help. The advantage here is that the benefits you’re receiving can boost your borrowing power. This is because lenders will use your salary plus the income from your benefits to calculate your overall income. As a result, you can borrow more than you otherwise would be able to.

Unemployed and claiming benefits

It’s possible to get a mortgage if you’re unemployed and claiming benefits, but only under certain circumstances.

Mortgage approval won’t be easy and your options will be very limited. This is because there aren’t many lenders that are willing to lend to unemployed applicants, even if you can afford to repay the mortgage with the benefits you receive.

The good news is that there are lenders that will consider you. Furthermore, benefits can be used towards your income and affordability assessment. Depending on the amount of income you receive, a mortgage may well be possible.

Low income and claiming benefits

Getting a mortgage with a low income is possible. In fact, using benefits towards your mortgage application when you have a low income can be helpful. This is because the income from your benefits can provide a top-up to your income, allowing you to potentially borrow more.

Lenders will also assess your income each time you apply for a mortgage. Typically, the more you earn, the more you can borrow. That said, if you’re currently earning a lower-than-usual income, lenders may assess your savings and assets in addition to the benefits you receive to make their final decision.

How do benefits affect a mortgage application?

Claiming benefits can affect your mortgage application in both a positive and negative way. For instance, you can use the income from your benefits to help support your application, but some lenders may not include benefits as part of their criteria.

Positive factors

• Boost your borrowing power
• Ideal for low-income households
• Use schemes such as Help to Buy and Shared Ownership
• Support towards affordability

Negative factors

• Not all lenders will include income from benefits
• Some benefits won’t be accepted by some lenders
• Can appear high risk if you’re dependent on benefits
• Underwriters will investigate deeper into your application
• Limited amount of lenders

Can I get a mortgage on disability benefits?

There are mortgages for those receiving disability benefits, but lenders are limited. This is because it can be difficult to pass a lender’s affordability check.

Nonetheless, with a well-packaged application, you can show lenders that you’ve been in receipt of disability benefits, especially if you suffer from a long-term disability. This is because lenders can agree that your disability benefits are likely to continue, allowing you to repay your mortgage.

If you have a short-term illness or disability that you’re likely to recover from, mortgage approval can become difficult. This is because the income from your disability benefits can stop, making mortgage repayments difficult. Lenders will need to know if you’re possibly returning to work and the duration of how long your benefits are likely to last.

Home Ownership for People with Long-term Disabilities (HOLD)

If you suffer from a long-term disability, you may be eligible for the HOLD scheme. HOLD is a government-backed scheme, which is similar to the shared ownership scheme.

The scheme allows you to part-rent and part-buy your home, owning between 10%-75% of the property and paying rent on the remainder.

Learn more about the HOLD scheme here.

Can I get a mortgage on Jobseeker’s Allowance?

Yes, there are lenders that accept applicants receiving Jobseeker’s Allowance (JSA). If you’ve been claiming JSA for over a year, then mortgage approval can become difficult. This is because you may appear overly dependent on the income you receive from benefits.

If you already have a mortgage, the Department of Work and Pensions (DWP) offers support for mortgage interest (SMI). This is to help with your mortgage payments while you’re not in full-time employment. You will be charged interest so do check the terms and conditions with the DWP beforehand. Our experts can also help you with this.

What if I receive child benefit?

Using child benefit towards your mortgage application is often advised. This is because it can increase your income, ultimately increasing the amount you can borrow.

With this in mind, not every lender will count child benefits towards your income. Other lenders will only use a percentage of the child benefits you receive. If you are in receipt of child benefits and want to maximise your borrowing power, you’ll need to make sure your lender is suitable. This means your lender should include 100% of your child benefits towards your income.

Under no circumstances should a lender penalise you for claiming child benefit, so you should always declare this. It can only become an issue if you have no other income, such as a salary or income from other benefits. Lenders will also assess the ages of your children and the number of children you have during your mortgage assessment.

Can I get a mortgage with Universal Credit?

It’s possible to get a mortgage with Universal Credit, but other factors will influence a lender’s decision.

Lenders will assess the following:

• Whether you have other income or assets – Additional income and assets will support your application
• Your deposit amount – Higher deposits such as 20% or more can help your application, but 5-10% deposits will be difficult
• Dependency on Universal Credit – If your income is mainly from Universal Credit, lenders will question your ability to repay a mortgage
• Any other benefits you’re claiming – Claiming other benefits can help your application, but only with lenders that include income from benefits
• The type of mortgage you’re applying for – Certain mortgages may be easier, such as buy to let, where certain lenders don’t have any minimum income requirements

My only income is from Universal Credit

If you’re claiming Universal Credit, it’s likely you’ll have a low income or be unemployed. Getting a mortgage under these circumstances can be very difficult, but it may still be possible.

To improve your chances, speak to a mortgage advisor who can assess your current situation in greater detail. We’ll then search for any potential lenders that are suitable, as you’ll be classed as a high-risk applicant. Applying with lenders yourself could result in you being declined.

What benefits can be used for a mortgage?

The following government benefits can be used towards an income for a mortgage:

• Attendance Allowance
• Carers Allowance
• Child Benefit
• Child Tax Credit
• Disability Living Allowance (DLA)
• Housing Benefit
• Incapacity Benefit (IB)
• Industrial Injuries Benefit (IIB)
• Maternity Pay
• Pension Credits
• Severe Disablement Allowance
• Universal Credit
• Widow’s Pensions
• Working Tax Credit

It’s important to note that each lender has a unique mortgage assessment. Some underwriters won’t include certain benefits in their assessments and others will.

Which mortgage lenders accept benefits?

Not all lenders will accept benefits and those that do aren’t always easy to find. Some high-street lenders will accept benefits as part of their mortgage assessment, but often require other forms of income, either from work or investments.

It’s also easier to be accepted if you’re claiming certain benefits. For instance, if you’re suffering from a long-term disability, lenders will be more inclined to accept income from disability benefits. This is because it’s likely to be long-term and can support mortgage payments.

Mortgage lenders can’t discriminate against applicants claiming benefits. As a result, lenders won’t decline your application solely based on the benefits you’re claiming. Furthermore, lenders aren’t able to offer you a mortgage in return for higher rates and fees because you’re in receipt of benefits. That being said, lenders can decline your application if your income doesn’t suit the mortgage you’ve applied for.

How much can I borrow on benefits?

The amount you can borrow will depend on the lender you’ve applied with. This is because each lender has its own affordability system. Furthermore, other factors will affect the amount you’re able to borrow, such as your credit score and the deposit you have.

With that in mind, most lenders offer maximum amounts ranging between three and five times your annual income. It can get tricky because some lenders will only use a capped percentage of your benefit income. Other lenders won’t include income from benefits at all.

For instance, if you earn £20,000 a year and receive £5000 in benefits, lenders may offer you between £75,000 and £125,000 as a maximum amount. That’s if they include your income from benefits in your assessment, as not all will.

Use our mortgage affordability calculator here.

How can I get a mortgage on benefits?

To improve your chances of getting a mortgage on benefits, you can do the following:

• Save for a higher deposit
• Get an Agreement in Principle (AIP)
• Show evidence that you can repay a mortgage
• Reduce your debt

Save for a higher deposit

The most effective way to boost your mortgage chances is to save as much as you can for a deposit. Those with 5% deposits will be deemed high-risk and if you’re claiming benefits, you’ll already be in a high-risk bracket. This is why it’s advised to save as much as you can before applying.

Using a higher deposit can often unlock better rates too. Although it may take longer to save for a higher deposit, doing so can save you money overall.

Get an Agreement in Principle (AIP)

An Agreement in Principle is a perfect way to start your homebuying journey. This is because you’ll be given a budget that you can work towards. You’ll also have more confidence in viewing properties as you’ll know exactly how much a lender is likely to lend to you.

We’d still recommend you speak to an advisor before submitting an application for an AIP. This is because applying with unsuitable lenders could leave a footprint on your credit file, bringing your credit score down if you’re rejected.

Show evidence that you can repay a mortgage

If you fall short on an affordability assessment, your mortgage will be declined or you’ll be offered less. Spending time documenting your income and preparing your bank accounts can work wonders toward your mortgage.

Showcase your income in its best possible light before applying for a mortgage. You can also make a note of your income, including the benefits you receive and then calculate what you spend each month. This can include monthly subscriptions and payments. You can then calculate what you have each month and whether you can repay a mortgage. Our experts can also do this for you.

Reduce your debt

Reducing your debt can improve your mortgage chances. Having a lot of debt before you get a mortgage is rarely advised. In contrast, minimising your debt as much as possible can help your application, as doing so can reduce your monthly outgoings.

Having large monthly outgoings for existing debt can work against you. This is because lenders need to be sure you have enough income each month to repay your mortgage.

Can I get a mortgage on benefits with bad credit?

Having bad credit will make mortgage approval difficult. As you’re claiming benefits, lenders will already view you as a high-risk applicant. Once you add bad credit to your application, your level of risk becomes extremely high and some lenders will decline you.

You’ll certainly need specialist mortgage advice and you may even need a specialist mortgage lender. Many high street lenders don’t accept bad credit in any form, even with those earning good salaries.

The specialist lenders that we work with will check the dates and severity of your credit issues. Historic issues will have less impact, whereas recent credit problems will limit your mortgage chances.

Can I get a buy to let mortgage on benefits?

It’s possible to get a buy to let mortgage on benefits. Some buy to let lenders don’t have minimum income requirements and base their assessment on whether the rental income is enough to repay the mortgage. For this reason, you’ll need to make sure the rental income is at least 125% of the mortgage. Some lenders may require your rental income to be 140% of the mortgage.

You’ll also need a minimum 25% deposit. You may be able to get a buy to let mortgage with a smaller deposit, but if the majority of your income is from benefits, you will struggle.

Being an existing landlord can help your application. This is because you’ll have income from your investment properties in addition to the benefits you receive.

How can I get mortgage advice for benefits?

It’s always recommended to get expert advice before applying for a mortgage. This is especially true if you’re claiming benefits, as an experienced advisor can guide you through what’s possible and which lenders are suitable if any.

You’ll certainly need to speak to an expert if:

• Over 50% of your income comes from benefits
• You have bad credit
• You’re on a low-income or unemployed
• You’ve already been declined
• Your benefits are set to end soon
• You wish to use benefits on your application

You can make an enquiry online or call us on 0800 195 0490 to speak to an expert.

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Applying for a mortgage on a property with a deed of covenant is far from straightforward. This is because there may be restrictive terms due to the covenant.

Although mortgage lenders accept properties that have covenants, they’ll still require details of what the covenant entails. For this reason, mortgages with restrictive covenants are assessed on a case-by-case basis.

This is because some covenants can restrict the property to such an extent, that it may affect the value of the home. This can then have a negative effect on your application.

What is a deed of covenant when buying a property?

A deed of covenant is a legally binding deed in which the homeowner agrees to the obligations and terms of the covenant.

Covenants are used to ensure that homeowners comply with the terms of their property. Agreements are placed in the mortgage deeds to your home and aren’t attached to you personally.

It’s also important to note that some covenants can have a positive effect on your living arrangements, whereas others can be restrictive.

Positive covenants

Positive covenants typically carry obligations that have a positive outcome. As a result, it’s often easier to get a mortgage with a positive covenant.

Examples of positive covenants include:

• Expenditure on improving the property
• Repair or maintenance
• Building boundary fences

Restrictive covenants

In comparison, restrictive covenants restrict the use of land. Restrictive covenants can make mortgage approval difficult.

Examples include:

• No alterations to the property without consent
• Not to park certain vehicles on the land
• Not to erect satellite dishes
• Prevent certain trades on the land
• Limitations on the type of animals that can be kept at the property
• Restrictions on where you can build

Can I get a mortgage with a restrictive covenant?

Yes, getting a mortgage with a restrictive covenant is possible, but it depends on the covenants attached to the property.

The lender you’ve approached will also have an effect on whether you’re approved. Depending on the conditions of the property, some lenders will be better suited than others.

The main reason lenders are cautious with mortgages involving covenants is because of the legal obligations that are attached to the property. Certain covenants can affect property values which can make them high-risk propositions.

Disadvantages of buying a property with a restrictive covenant

• Unable to build on the land
• Could be restricted on how you renovate the property
• Extending the property could be an issue
• May find it harder to get a mortgage
• Selling the property could prove difficult

Your conveyancer will also talk through your restrictive covenants in further detail. This will give you an idea of your exact legal duty, so you can make a more informed decision.

Which mortgage lenders accept restrictive covenants?

If you’re buying a property with restrictive covenants, your choice of lenders may be limited. This is because covenants have certain risks attached to them and as a homeowner, you must abide by your legal obligation.

Properties that have restrictive covenants are often harder to sell for this very reason. As a result, mortgages are harder to come by.

Lenders can charge higher rates and fees for a mortgage with covenants. You may even be required to put down a larger deposit.

The good news is that there are specialist lenders that design mortgages for this very purpose. Providing you meet the rest of your lender’s criteria; a mortgage would be possible.

Buying land with a covenant

Getting a mortgage for land is very different from a property mortgage. If the land you’re buying has a covenant, then it could limit your mortgage options.

Most lenders require your land to have building consent at the time of applying for a mortgage. If you have a covenant that restricts buildings of any type, you may struggle to gain approval.

It’s common practice for land buyers to gain planning permission before applying for a mortgage. This way, you can have confidence in the plot of land you’re buying, as long as the covenants don’t restrict what you wish to do.

Read more: How to get a mortgage on land

What happens if I breach a covenant?

If you have a property with a covenant, you must adhere to upholding the conditions in every aspect. This is because you have a legal obligation to do so.

Breaching a covenant can result in you facing fines for any granted injunctions.

Can I take indemnity insurance against a covenant?

At the time of buying your property, your conveyancer may offer you indemnity insurance to protect you from your covenant. That being said, indemnity insurance only applies to certain properties and not every covenant can be covered. Furthermore, the cost of the insurance could be high, which could affect your buying decision.

Some mortgage lenders may also insist that an indemnity policy is taken out, depending on the covenants attached to the property.

Can I remove a covenant from a property?

If you’re not eligible for an indemnity policy, you may be able to remove the covenant from the property.

It’s possible to remove a covenant if you’re able to contact the person with the benefit of the covenant. This is done to obtain ‘retrospective consent’ for the work you wish to carry out. If this approach doesn’t work, you can apply to the Upper Tribunal Lands Chamber to try and remove or change the covenant.

Removing a covenant isn’t an easy task and certainly won’t provide you with a quick solution to mortgage approval. Removing restrictive covenants can even increase the value of the property. As a result, the seller may decide to increase the sale price.

Need more help?

If you’re still unsure about what to do next, you can speak to an expert mortgage advisor. Simply make an enquiry and we’ll contact lenders on your behalf to check what’s possible.

Because you’re buying a home with restrictions, it’s important not to overpay because a lender is willing to accept you. There may be other lenders willing to offer you a mortgage at better rates. Searching the market can ultimately lead to you being accepted for a mortgage with competitive rates.

Your conveyancing team will also give you legal advice on how your covenants will affect you. If your conveyancer feels the covenant will restrict you from achieving what you wish to do, they may advise you against buying.

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Use our bad credit mortgage calculator to check how much you may be able to borrow for a mortgage.

How will my mortgage be calculated if I have bad credit?

Mortgage lenders will carry out a credit check when your mortgage application is submitted. Depending on the credit issues you’ve faced, lenders will either decline the application or base the loan amount on your credit problems.

Our mortgage calculator allows you to check whether a mortgage is possible with your credit issues. That being said, any mortgage calculator should only be used for guidance, so do seek help from our experts if you require a mortgage lender that accepts bad credit.

By entering your credit problems and the amount you wish to borrow, our calculator will guide you on what’s possible. Online calculators are a great place to start as they’ll give you an idea of how much can you borrow in relation to your credit history.

Bad credit FAQ

Bad credit mortgage guides

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Use our Help to Buy calculator to work out whether a Help to Buy mortgage would be affordable for you. Our calculator will give you an idea of the type of mortgage you’ll be able to apply for based on your income and property value. Furthermore, your location will also have an impact on the type of Help to Buy mortgage on offer.

Why does Help to Buy depend on my location?

A Help to Buy equity loan is a government scheme that can help you to buy a new-build property. The location of your Help to Buy home will be a factor in the maximum amount you can borrow. In addition, the maximum property price will vary depending on where your property is located.

England (outside of London)

If you’re buying a home in England, but outside of London, then the most you can borrow for an equity loan is 20%. There are also regional caps on the maximum amount you can borrow for a Help to Buy mortgage.

• North East: £186,100
• North West: £224,400
• Yorkshire and the Humber: £228,100
• West Midlands: £255,600
• East Midlands: £261,900
• East of England: £407,400
• South East: £437,600
• South West: £349,000

Help to Buy in London

If you’re buying a new build in London, you may qualify for a 40% equity loan. Furthermore, the Help to Buy regional cap for London is £600,000.

The reason why the regional cap and the value of the equity loan are higher is that house prices in London are typically higher than anywhere else in the UK. That being said, taking on a larger mortgage will mean higher payments each month.

Wales

Help to Buy in Wales will enable you an equity loan of up to 20%. The maximum property price is also capped at £250,000. If you’re buying a home in wales for more than £250,000, you won’t be able to use the Help to Buy scheme.

Am I eligible for Help to Buy?

Not everyone will be eligible to use Help to Buy. Furthermore, the property you’re buying must also meet certain criteria.

• The property must be a new-build
• Limited to first-time buyers only in England
• Available to first-time buyers and home movers in Wales
• The home you’re buying must be for residential purposes and not buy to let
• You must have at least a 5% deposit
• The value of the property must fall within the regional cap for your area

Learn more about Help to Buy

Help to Buy can be useful in some situations, but there are also some potential pitfalls to consider.

Learn more by reading our Help to Buy guides:

• Help to Buy mortgage guide
• Can I apply for Help to Buy with bad credit?
• How to remortgage a Help to Buy home

If you’re still unsure of what to do, our advisors are available to help you with your mortgage application.

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Use our self-employed mortgage calculator to check how much you may be able to borrow for a mortgage.

How will my mortgage be calculated if I’m self-employed?

If you’re self-employed, lenders will typically use the figures you’ve submitted in your tax returns or company accounts. They’ll then base your loan amount on the income you’ve declared. Furthermore, the type of self-employment you have will also make a difference.

For instance, a sole trader is assessed differently from a company director. A sole trader will be assessed on net profit income, whereas a director will be assessed on dividends and company profits.

How many years do you have to be self-employed to get a mortgage?

Your lender will factor in your employment history, such as how long you’ve been trading. For instance, those that have been self-employed for three years or more typically find it easier to get a mortgage. That being said, it’s possible to get a mortgage even if you’ve only been self-employed for one year. It’s crucial to have filed your latest accounts, as your lender will request this information.

How much deposit will I need for a mortgage if I’m self-employed?

Most lenders require self-employed applicants to have a 10% mortgage deposit, but it’s possible to get a mortgage even with a 5% deposit. Lenders will assess your credit file in addition to whether the mortgage you’ve applied for is affordable. If you satisfy a lender’s requirements, you may be approved with a 5% deposit.

If you fall short of meeting a lender’s criteria, a deposit of 10-15% might be enough to get a mortgage. It’s also important to note that a mortgage with a 5% deposit typically has higher rates when compared to mortgages with higher deposits.

Self-employed mortgage guides

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Use our monthly mortgage calculator to check how much your mortgage will cost you each month.

How can I reduce my monthly mortgage payment?

Reducing your monthly mortgage payment is possible, but you may need your lender’s consent. That being said, there are several ways to reduce your monthly mortgage payments that don’t always require consent from your lender.

You can reduce your mortgage costs by:

• Ensure you’re not on a standard variable rate mortgage (SVR)
• Extend the term of your mortgage
• Overpay your mortgage each month to bring interest levels down
• Switch to a better deal by remortgaging

Make sure your mortgage isn’t on a standard variable rate (SVR)

It may sound obvious, but you’d be surprised by the number of homeowners that have standard variable rate (SVR) mortgages. If you have a mortgage on an SVR, simply switching your mortgage can reduce your monthly mortgage cost quite considerably. A mortgage on an SVR is the most expensive way to repay your mortgage, so it makes financial sense to switch deals.

Most mortgages have an introductory period, which is usually fixed for 2, 3 or 5 years. Once this period ends, your mortgage will automatically switch to a standard variable rate, which is typically more expensive. By switching deals, you’ll enter into another introductory period with rates likely to be cheaper than an SVR.

Extend the term of your mortgage

Extending your mortgage term can bring your monthly mortgage payments down. This is because you’re paying your mortgage over a longer period of time. That being said, extending your mortgage term has its disadvantages too.

Although your monthly payments will be cheaper, you’ll pay more interest on the mortgage over your term, not to mention being tied down to a mortgage for longer. Nonetheless, extending your mortgage term can reduce your monthly payments and make your mortgage more manageable.

Make overpayments on your mortgage

This may sound strange, but overpaying your mortgage can bring your balance down quicker, eventually reducing your monthly mortgage costs. This can be ideal if you have surplus capital each month. Overpaying your mortgage will of course cost more each month, to begin with, but you’ll pay less interest over your mortgage term.

Some lenders won’t allow you to overpay, or you may be charged an early repayment charge (ERC) if you redeem your mortgage too early. With that in mind, check the terms and conditions of your mortgage before you make a decision.

Switch to a better deal

Shopping around for a better mortgage deal can reduce your monthly payments. That being said, a low-interest rate doesn’t always mean that you’ll be on a better deal. As a result, you’ll need to assess the costs to remortgage in addition to the mortgage rate itself.

If you switch your mortgage during a fixed term, you may be charged an ERC so do check beforehand with your existing lender.

How can I calculate my monthly mortgage?

Use our monthly mortgage calculator by entering details such as:

• Deposit amount
• Mortgage amount
• Your mortgage term
• The interest rate of the mortgage

We’ll then calculate what you’ll pay for your mortgage each month. Furthermore, you can compare the cost of a repayment mortgage with an interest-only mortgage to calculate the difference.

Can a mortgage advisor calculate my monthly cost instead?

Although mortgage calculators are great tools for providing estimations and approximate costs, a mortgage advisor can give you an accurate figure.

The reason mortgage advisors can calculate your monthly costs more accurately is that we can assess your overall financial profile. This is exactly what underwriters do when you apply for a mortgage. You can make an enquiry to speak to an advisor who can then calculate your mortgage for you.

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Our remortgage calculator will work out whether you could save money on your mortgage by switching to a new deal. The rates used are an example, so do speak to our advisors for a more accurate idea of the deals you qualify for.

How is a remortgage figure calculated?

Our remortgage calculator uses different mortgage rates based on the loan-to-value of your remortgage. A high LTV will have higher rates whereas a low LTV will have a lower rate. For instance, a 60% remortgage is likely to have better rates when compared to a 95% remortgage.

The calculator uses mortgage rates that are updated regularly to reflect live remortgage deals. That being said, the results of the calculator are an approximate guide that only works with the figures entered and won’t take into account your personal situation.

Can a remortgage save me money?

The most popular reason for remortgaging is to save money. Once your initial deal expires, you’ll be placed on a standard variable rate (SVR) which is usually a lot higher than an introductory mortgage rate. As a result, switching deals can save you money.

Saving money on a remortgage isn’t just about switching deals or finding the lowest rate. You’ll want to be sure that you’ve selected the mortgage that will save you the most money. This is done by calculating the cost of your remortgage, such as the fees and rates involved. Our remortgage calculator will show you how much you can save each year on your mortgage where possible.

How much more can I borrow by remortgaging?

If you have enough equity in your home, you could remortgage to borrow more against your home. This is known as releasing equity. As you’ll be borrowing more, your mortgage payments will likely rise as a result. Nonetheless, releasing equity can be wise depending on your reasons for doing so. For instance, using the equity in your home to buy a second property can be a great use of the additional funds you have.

Lenders won’t allow you to borrow 100% against your home with a remortgage, so you will need to leave some equity in your home. You may be able to leave as little as 5% equity by using a 95% remortgage, but not all lenders will allow you to do this.

Useful remortgage guides

• Remortgage fees explained
• How to remortgage with an early repayment charge
• How to get a remortgage quote
• Compare remortgage deals

What should I do next?

So, you’ve tried our remortgage calculator and learnt more about the process, but what should you do next? If you’re ready to begin looking at remortgage deals, make an enquiry and our experts will give you a call. We’ll then assess whether remortgaging will save you money by comparing each deal you’re eligible for.

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