Remortgaging for NHS Workers – Can You Get a Better Deal?

Working for the NHS is a noble pursuit that helps to support an ever-growing healthcare service in the UK. When it comes to remortgaging, though, working for the NHS can make things complicated. Not all lenders understand the unique pay structure for NHS workers, so it helps to do a bit of research to find the most suitable lender for remortgaging.

In this article, we’ll find out if NHS workers can get a better remortgage deal by shopping around, how our team at WIS Mortgages can help with this and provide some tips to improve your chances of securing a favourable new deal for your mortgage.

Key Takeaways

• NHS workers can often secure favourable remortgage deals, depending on individual income and credit profiles, by working with lenders who understand NHS pay structures.
• Overtime, enhancements, bank shifts and allowances may be accepted by many lenders, depending on consistency and documentation.
• NHS employment is viewed as stable, which can improve affordability assessments and access to competitive rates.
• Remortgaging can help lower monthly repayments, release equity, or consolidate debt, but it’s important to consider long-term implications.
• Specialist advice is key, as brokers familiar with NHS income structures can identify the lenders most likely to offer a strong deal.

Your home may be repossessed if you do not keep up with repayments on your mortgage.

Why Would NHS Workers Consider Remortgaging?

The NHS is the UK’s biggest employer, with over 1.7 million people working there. With so many NHS workers in the UK, lenders are starting to provide tailored NHS mortgage products that cater to healthcare workers. This is important to know if you’re remortgaging, as you’ll want to consider lenders that offer these products.

There are loads of reasons you might decide to remortgage, such as when:

• Your fixed rate is ending, and you want to avoid moving onto your lender’s standard variable rate (SVR).
• Interest rates have changed, and there’s potential to secure a better deal.
• You need to release equity for home improvements, debt consolidation, or major life events.
• Your income has changed, such as receiving more overtime, band progression, or taking on extra shifts.
• You want to switch to a lender who better understands NHS pay, including irregular hours.

Want to know how much you could save by remortgaging? Try out our free remortgage savings calculator to find out in a few clicks. This tool provides an illustrative estimate only and does not constitute an offer or advice.

Do NHS Workers Get Special Remortgage Deals?

There isn’t a specific NHS mortgage, but many lenders offer tailored products that cater to NHS workers. This typically means offering remortgage products that feature enhanced criteria or underwriting flexibility for NHS staff. What does this mean, though? For NHS workers, these products usually provide:

• Higher affordability allowances
• More generous treatment of overtime and shift allowances
• Access to competitive rates available to key workers
• Acceptance of complex pay structures

Some lenders run key worker schemes, while others simply provide greater income flexibility for public sector employees. The best way to find out about these deals is by working with a mortgage adviser who can help you identify suitable products for your circumstances, such as one of our team at WIS Mortgages.

Why Should NHS Workers Look at Different Lenders When Remortgaging?

Much of our work at WIS Mortgages involves connecting our clients with the most suitable lender for their circumstances. For NHS workers, this typically means identifying lenders who truly understand the income and payment structure that the NHS uses. NHS workers often have unique pay structures that include:

• Basic salary
• Enhancements for night shifts
• Weekend premiums
• Overtime
• Bank shifts
• Medical or dental allowances
• On-call payments
• Locum income (for some roles)

Unfortunately, not all lenders consider these variable pay structures. This creates scenarios where NHS workers can’t access their full borrowing potential as they are working with lenders who don’t factor in different types of pay.

Specialist lenders, though, like those experienced in NHS cases, can often do more for NHS workers, depending on individual income and credit profiles. This can mean providing you with increased affordability and better remortgage deals by taking your full financial picture into account.

How Do Lenders Treat NHS Income When Assessing a Remortgage?

All lenders have their own criteria when it comes to assessing income for remortgages. This is especially true for NHS income, as it often includes different forms of payment beyond standard salary, such as overtime or bank work. Lenders need to assess how reliable and consistent each part of that income is.

While some lenders take a cautious approach, others are far more flexible, especially those familiar with NHS employment patterns. Below, we’ve outlined how different types of income are typically treated during a remortgage assessment.

Working with a broker familiar with NHS employment patterns, such as WIS Mortgages, can help identify lenders who will take all these factors into account.

Case Study: Finding a Lender Who Understands NHS Workers

At WIS Mortgages, we help our clients by understanding their situation in-depth and finding a suitable lender for their circumstances. In one recent case, we helped an NHS worker who was about to remortgage with their existing lender. They believed that they had to stay with their existing lender for the entirety of the mortgage term, which isn’t true.

Our client had initially used an adverse credit lender as a result of a past missed payment. However, after looking into it we discovered that the previous credit issue had aged sufficiently and was no longer restricting their options. The adverse credit lender was offering a slightly better rate, so our client was initially happy to proceed with this.

We looked at things a little further and realised that his credit profile looked healthy when factoring in his NHS pay. So, we kept things simple and looked at high-street lenders who could offer better rates than their current provider. We made sure to use a lender who understood NHS payment structures, which really helped improve his remortgage deal.

Once we showed our client the new offer from the high-street lender, he accepted and managed to save £75 per month. This would make for a huge saving over the duration of the new fixed term. We also shifted our client away from an adverse lender to a prime lender, further reducing long-term costs.

Note: This example is for illustrative purposes only. Actual savings depend on your individual financial circumstances and the lender’s criteria

Can NHS Workers Remortgage on Temporary, Bank or Fixed-Term Contracts?

Many NHS workers are on temporary, bank or fixed-term contracts. Although this is a different setup from a standard salaried role, some lenders will accept this type of income for remortgage applications. However, it is often the case that a specialist lender is required.

• Bank Contracts: Some lenders accept bank-only income if it’s consistent and well-documented.
• Fixed-Term Contracts: These are common in the NHS, especially for junior doctors. Lenders may accept these if there is a good history of contract renewals or a strong likelihood of continuation.
• Locum Doctors: Lenders often assess locum workers as self-employed or contract workers, and many have dedicated criteria for medical professionals.

If you’re employed by the NHS in a non-standard role, it’s especially important to use a broker who understands which lenders are flexible and which are not.

Frequently Asked Questions

Q. Do NHS workers get better remortgage rates?

A. Not always, but NHS workers often benefit from more favourable affordability assessments. Lenders see NHS employment as stable and low risk, which can make it easier to access competitive rates.

Q. Will lenders accept my NHS overtime or enhancements?

A. Many lenders accept a sizeable portion of regular overtime, unsocial hours payments, shift allowances and other enhancements. The more consistent the income, the more likely it is to be included.

Q. Can I remortgage if I’m on a bank contract?

A. Yes. Some lenders accept bank-only income, especially if you have a strong history of regular shifts. A specialist broker can help identify which lenders are most flexible.

Q. Is it possible to remortgage to consolidate debt?

A. Yes, but it requires careful planning. Consolidating debt into your mortgage can reduce monthly outgoings, but may cost more over the long term. While consolidating debt may reduce your monthly payments, it often increases the total amount repayable over time and secures previously unsecured debt against your home. This can put your property at risk if payments are not maintained.

Find the Right Remortgage Deal as an NHS Worker With WIS Mortgages

So, can NHS workers get a better remortgage deal? Often, yes, especially when working with a lender or broker who truly understands NHS income structures.

While there are no universal “NHS-only” mortgage products, many lenders offer enhanced underwriting, flexible affordability criteria, and competitive rates for healthcare professionals.

By considering these lenders, you can make some potential savings when refinancing your home.

Whether you want lower repayments, better rates, or help working through your unique income patterns, WIS Mortgages can guide you to the most suitable remortgage solution for your circumstances. To get started, please contact our team today.

Important FCA Warning

This financial promotion has been approved by WIS Contractor Mortgages Ltd (FRN 824411), which is authorised and regulated by the Financial Conduct Authority, in accordance with section 21 of the Financial Services and Markets Act 2000.

Calculations are estimates and do not constitute an offer. Affordability assessments vary by lender.

As a mortgage is secured against your home, it may be repossessed if you do not keep up the mortgage repayments. Written by the mortgage experts at WIS Mortgages, specialists in complex income and affordability assessments.

WIS Mortgages is a trading name of WIS Contractor Mortgages Limited, which is authorised and regulated by the Financial Conduct Authority. FCA number: 824411.

This article is for information purposes and does not constitute personal mortgage advice. You should speak to a qualified mortgage adviser to assess your individual circumstances.